What is Loan Against Fixed Deposit?

An investment made in fixed deposit takes care of your liquidity needs. It takes care of short-term goals and can also help in tax planning (a 5-year tax saver FD).

An investment made in a fixed deposit can serve as the last resort on a rainy day when you are in dire need of funds. It does help in contingency planning.

You can either liquidate the fixed deposit or avail a loan against the fixed deposit. If the fixed deposit is liquidated prematurely, you may end up losing on the interest, but if you avail a loan against the Fixed Deposit, you will continue to earn interest on the deposit and also get access to funds. The rate of interest charged on loan against fixed deposit is much lower compared to the interest on Unsecured Personal Loans.

This loan is the best option if you have issues with credit score and you are not able to meet the eligibility criteria. The conditions to avail the loan will not be stringent since you are holding a fixed deposit of the bank.

Advantage of Availing a Loan Against Fixed Deposit

The advantages of availing loan against a fixed deposit are:

  • The loan processing is very simple since you are holding the fixed deposit of the bank
  • Documentation is minimal
  • Your fixed deposit will continue to earn the interest
  • Can get the funds instantly
  • Lower interest rates
  • No processing fees
  • No pre-payment charges

Top Banks Offering Loan Against Fixed Deposit

Here are some of the top banks that offer loan against a fixed deposit:

  • State Bank of India
  • Axis Bank
  • HDFC Bank
  • Punjab National Bank
  • ICICI Bank
  • Citibank
  • Deutsche Bank

State Bank of India

SBI Loan Against TDR/e-TDR/STDR/e-STDR/RD

Key features of the Loan

  • Eligibility: Customer (single/joint) holding SBI TDR/e-TDR/STDR/e-STDR/RD can avail this loan. The single holder can avail the overdraft facility online. Online overdraft facility for deposit in joint names not available.
  • Nature of facility: Both Demand Loan and Overdraft facility
  • Quantum of Loan: 90% of principal and interest of the relative deposit with a minimum of 25,000 and maximum of 5 Crores.
  • Interest: 1% above the interest earned by the fixed deposit offered as security
  • Security: Collateral security of fixed deposit lien in favour of the bank will be marked on the deposit. Custody of the fixed deposit duly discharged will be with the bank.
  • Repayment: If availed at the branch level suitable repayment schedule will be set depending upon the repayment capacity of the depositor for Demand Loan. Maximum repayment period of 5 years for STDR/e-STDR and 3 years for TDR/e-TDR for overdraft facility availed online.

State Bank of India Loan Against NRO/NRE/FCNR(B)

This loan can be availed for any business activities, for acquiring a flat/house in India or for meeting financial requirements. It cannot be granted for re-lending or for agricultural/plantation activities or for investment in real estate business. The loan amount cannot be repatriated.

  • It can be availed in INR or foreign currency against the security of NRE/NRO/FCR(B) deposit.
  • The loan is given to depositor only
  • Interest will be charged at monthly intervals for both Indian Rupee and Foreign currency loan.
  • Premature withdrawal of underlying:
    • NRE/FCNR(B) deposit is not permissible
    • NRO deposit is permissible but outstanding principal and interest will be settled first

Key features of loan against NRO/STDR/TDR/RD deposits:

  • Eligibility: Customers (single/joint account holders) holding SBI's NRO/TDR/STDR/RD deposits can avail this loan. The single account holder can also avail overdraft online through Internet banking platform.
  • Nature of facility: Demand Loan or Overdraft facility
  • Quantum of loan: Up to 90% of principal and accrued interest. The loan will be in Indian Rupees only and can be availed from home branch in India.
  • Rate of Interest: 1% above the relative fixed deposit rate
  • Security: Lien in favour of the bank will be marked on the fixed deposit and custody of the Deposit Receipt duly discharged will be with the bank.
  • Repayment: Repayment tenure up to the remaining period of maturity. Repayment can be done either by adjusting the proceeds of the deposit, by fresh inward remittance, or through another NRO account.

Key Features of Loan Against NRE/TDR/e-TDR/STDR/e-STDR/RD

  • Eligibility: Customers (single/joint holders) holding SBI NRE/TDR/e-TDR/STDR/e-STDR/RD can avail the loan.
  • Nature of facility: Both Demand Loan and Overdraft facility
  • Quantum of loan: No minimum and maximum quantum stipulated. 90% of principal and interest of the fixed deposit pledged for the loan. The loan will be in Indian rupees only and can be availed from home branch in India.
  • Repayment: Repayment tenure is up to the remaining period of maturity. Repayment can be made by adjusting the underlying deposit only on maturity or by fresh inward remittance or through another NRE/NRO account. The repayment from NRO account will be within the cap of USD 1 million in a financial year.
  • Security: Collateral security of fixed deposit. Lien will be marked in favour of the bank. Custody of the Fixed Deposit Receipt duly discharged will be with the bank.
  • Interest: 1% above the rate earned on the fixed deposit

Key features of Loan Against FCNR(B) TDR/STDR

  • Eligibility: Customers (single/joint holders) holding SBI FCNR(B) TDR/STDR deposit can avail the loan.
  • Nature of facility: Demand Loan, Overdraft facility, and Foreign Currency loan. The facility for the creation of overdraft facility online is not available.
  • Quantum of loan: Minimum of USD 25000, GBP 15000, and EURO 20000. There is no maximum limit. Loan up to 90% of notional rupee value of foreign currency deposit and accrued interest. The loan can be availed in Indian Rupees, USD, GBP, and EURO from designated branches in India or from the foreign office.
  • Repayment: For Indian Rupees, tenure is up to the remaining period of maturity. For foreign currency loan, 1, 2, 3 years or up to the remaining period of maturity with a minimum of 1 year.

Repayment can be done by adjusting the underlying deposit only on maturity or by fresh inward remittance or through NRE/NRO account. The maximum repayment from NRO account will be within the cap of USD 1 million in a financial year.

  • Interest: 50% over prevalent FCNR(B) deposit rate for the relative period at the time of processing of the loan.
  • Security: Collateral security of FCNR(B) deposit. Lien will be marked in favour of the bank and custody of the FCNR(B) deposit duly discharged will be with the bank.

Execution of documents should be done by the depositor themselves if the loan is availed in the home branch and not by power of attorney holder. Execution of documents as per the policy of the respective office, if the loan is availed from the overseas branch.

Creation of Overdraft Facility Online

Key features for creation of overdraft facility online are:

  • Eligibility: Customers having NRE/NRO fixed deposits (TDR/e-TDR/STDR/e-STDR) in a single name only with a minimum residual period of 6 months can avail of this facility. Deposits in joint names are not eligible for this facility. TDR/STDR not opened through internet banking facility have to be mapped to internet banking for availing this facility.
  • Permissible limit: 75% of the face value of the deposit for TDR/e-TDR and 90% of the face value for STDR/e-STDR.
  • Loan amount: The minimum loan amount is 25,000 and the maximum loan amount is 5 Crores.
  • Interest: 1% above the interest payable on the fixed deposit
  • Disbursement: Overdraft account will be opened through internet facility only and withdrawal/ transfer of funds can be done through internet facility or through cheques. Request for the cheque book has to be made separately through the internet banking facility.
  • Tenure: For TDR/e-TDR the tenure is 3 years or the remaining maturity period of the deposit whichever is earlier. The monthly/quarterly/half-yearly interest will continue to be paid to the depositor's account as originally opted.

For STDR/e-STDR the tenure is 5 years or the remaining maturity period of the deposit whichever is earlier.

  • Renewal of TDR/e-TDR/STDR/e-STDR deposits: Mandate given for the renewal of the deposits will stand cancelled if the overdraft is not cleared on or before the loan tenure.
  • Closure of Overdraft Account: The closure of overdraft account on or before the maturity of the deposit will be done at the home branch only. There is no provision at present for closure of overdraft account in internet banking.

Procedure to Create an Overdraft Account

Follow the steps mentioned below to create Overdraft Account through Internet Banking:

  • To begin with, log in to Internet Banking Account
  • Click on e-Fixed Deposit Tab
  • Click on 'Overdraft Facility' on the left hand side column
  • Select a Deposit and proceed accordingly

SBI does not provide loan on Third Party Fixed Deposits of other banks.

Axis Bank Loan Against Fixed Deposit

Key features of Axis Bank Loan Against Fixed Deposit

  • Eligibility: Customer holding an Axis Bank Fixed Deposit
  • Nature of facility: Overdraft facility. Cheque book and ATM card will be issued for the overdraft account.
  • Quantum of loan: 85% of the value of the maximum with a minimum of 25,000
  • Interest: Interest will be charged at 2% above the maximum rate
  • Tenure: There is no specific tenure. The maximum should be in force. You have the facility to repay the loan during the time period.
  • Security: Collateral security of the maximum. Lien will be marked in favour of the bank. Availability of the security and margin is not a substitute for the due diligence process. A thorough assessment as per the extant guidelines of the bank will be done before sanctioning the loan.
  • Rates and charges:
Facility Charges

Cheque book issuance

100 + GST

Penal Interest

2% p.m. + GST

Clearing cheque return-Issued by Customer

  • 500 + GST for the 1st and 2nd cheque
  • 750 + GST per instance, 3rd cheque onwards

Clearing cheque return-deposited by Customer

100 + GST

Clearing cheque return: Issued by Customer for outstation collection

50% of OSC commission with a minimum of 50 + other bank charges + GST

Cash deposit charges

3 per 1,000 + GST for both home and non-home branches

Cash withdrawal charges

Nil for home branch and 2 per 1,000 + GST for non-home branches

NEFT charges

  • Up to 10,000: 2.50 + GST per transaction
  • 10,001 to 1 Lakh 5 + GST per transaction
  • Above 1 Lakh to 2 Lakh: 15 + GST per transaction
  • Above 2 Lakhs: 25 + GST per transaction

RTGS charges

2 Lakhs to 5 Lakhs: 25 + GST per transaction

Above 5 Lakhs: 50 + GST per transaction

Account statement

By post and e-mail : Free

Duplicate statement

By branch: 100 + GST (per statement)

Renewal charges

Nil

Pre-payment charges

Nil

DD drawn on Axis Bank: Cancellation, reissuance, revalidation

100 + GST per instance

DD drawn on correspondent bank branches: Cancellation, reissuance, revalidation

100 + GST plus other bank charges at actuals

Stop payment charges

100 per series: 250 + GST

Loan Against HDFC Bank Fixed Deposit

Key features of the loan

Eligibility: Resident Individuals (sole or joint account), Hindu Undivided Family, and Private and Public Limited Companies holding an HDFC Bank Fixed Deposit are eligible for the loan.

Quantum of loan: 75% of the principal amount of the maximum. A minimum of 25,000 for minimum 6 months one day is required to open an Overdraft against FD/Super Saver Account, in addition to a zero-balance savings account.

Overdraft against FD/Super Saver facility on deposit held in a single name can be availed instantly through net banking.

In case of NRE/NRO deposit, the quantum of loan is 90% of the value of the maximum and in case of FCNR deposit quantum of loan is 70% of the deposit amount. Overdraft limit will be set up only on NRO CASA Account.

Interest: 2% above the maximum rate will be charged only to the extent of the amount utilised and for the period utilised.

The interest rate on Overdraft against FCNR deposit will comprise of FCNR deposit rate, Swap cost, and Spread.

Repayment: No specific repayment tenure. In case of overdraft against FD/Super Saver Account, if the overdraft is not cleared before the maturity of the deposit, the deposit will be renewed automatically for the same period at the prevailing rate.

Punjab National Bank Loan Against Fixed Deposit

Key features of the loan

Eligibility: Customers holding (single or joint account) a Punjab National Bank Fixed Deposit will be eligible for the loan. PNB grants loan against third party deposit also. The loan will be granted against Rupee Term Deposit/NRE/NRO/FCNR deposits.

Nature of facility: Term Loan and Overdraft Facility

Quantum of loan:

  • For a loan against Rupee Term Deposit including NRE deposit
Maturity period left at the time of granting Advance Loan amount

Advances against Term Deposits standing in the name of the Borrower

Up to 2 years

95% of the value of the fixed deposit

Above 2 years up to 3 years

92.5% of the value of the fixed deposit

Above 3 years up to 4 years

90% of the value of the fixed deposit

Above 4 years up to 5 years

88% of the value of the fixed deposit

Above 5 years

80% of the value of the deposit (minimum)

Advance against Third Party Deposit

75% of the value of the deposit (minimum)

Members of staff/voluntarily retired/honourably retired/ widow of staff

Advances up to 3 lakhs

95% of the value of the fixed deposit

Advances above 3 Lakhs

As applicable to the general public

  • Advances against Non-Resident Deposits (FCNR/NRO)
Maturity period left at the time of granting Advance Loan amount

Advances against FCNR(B) in the name of the Borrower

Up to 1 year

90% of the value of the fixed deposit

Above 1 year up to 2 years

80% of the value of the fixed deposit

Above 2 years

70% of the value of the fixed deposit

Advances against a deposit in the name of the third party

Up to 2 years

80% of the value of the fixed deposit

Above 2 years

70% of the value of the fixed deposit

NRO Term Deposit

75% of the value of the fixed deposit

At any point in time, if there is erosion in the minimum margin, the bank holds the authority to call upon the borrower to bring in the funds to make good the shortfall in the minimum margin or to liquidate the outstanding in the loan account by prematurely closing the deposit after serving proper notice to the borrower.

While granting loan against term deposits where TDS is applicable, under Section 194A of the Income Act on the interest of such term deposit, the TDS amount has to be reduced from the loan amount/Drawing Power/Limit.

Interest:

Particulars Rate of Interest

Rupee Loans against Term Deposit standing in the name of the borrower either singly or jointly or as guardian in case of an individual borrower

1% above the fixed deposit rate

Advances to borrowers against third party deposit including NRE deposits standing in the name of individual or entities other than individuals eg., Partnership concerns, Society, Trust, Public/Pvt Ltd Companies

2% above the fixed deposit rate with a minimum up to MCLR

Rupee Loans against FCNR(B) Deposits held in the name of the borrower(singly, jointly or as guardian). Advances

MCLR

Rupee Loans against FCNR(B) held by third party

MCLR + 0.75%

Security: Collateral security of fixed deposit. Lien will be marked on the deposit and custody of the deposit receipt duly discharged will be with the bank.

Repayment: No specific tenure. The tenure will be in line with the residual maturity period of the fixed deposit.

Online Overdraft Facility Against Fixed Deposits

Key features of this facility

  • Eligibility: Customers using Retail Internet Banking Service
  • Quantum of Loan: Minimum 25,000 and maximum 5 Crores in case of Sugam Deposit and a maximum below 1 Crore in case of other deposits.
  • Loan period: The maximum loan period under loan against fixed deposit is 3 years or the residual maturity period of the deposit whichever is lower.
  • Eligible fixed deposits: Fixed deposits in the name of the borrower having a residual maturity period of 3 years. Tax Saver and Capital Gains deposits are not eligible. 
  • Margin:
  • For General Public: 5% for deposits with a residual maturity period up to 2 years at the time of granting advance. 7.5% for deposits with residual maturity period above 2 years and up to 3 years at the time of granting advance.
  • For Staff: 5% for a loan up to 10 Lakhs
  • Ex-Staff: As applicable to the general public for loan above 10 Lakhs
  • Interest:
  • For General Public: 1% above the fixed deposit rate
  • For Staff and Ex-staff:
    • For a loan up to 10 Lakhs: At par with the fixed deposit rate
    • For a loan above 10 Lakhs: 1% above the fixed deposit rate
  • Other conditions:
  • One OD against one deposit. Multiple combinations of deposits just for availing the loan will not be permitted.
  • No document required
  • Provision of auto credit of interest on fixed deposit to loan account is available
  • Online Overdraft facility will be liquidated on the maturity of the fixed deposit and the surplus funds will be credited to the linked account from where the fixed deposit was made.
  • The system will fix the e-OD limit after maintaining the prescribed margin
  • Cheque book facility will be available for the e-OD Account against fixed deposit
  • The mandate for auto-renewal will be cancelled in the system before allowing e-OD against the fixed deposit.
  • Partial withdrawal will not be allowed in a fixed deposit on which e-OD facility has been availed.
  • Closure of e-OD facility will not be allowed till the maturity of the fixed deposit even if the balance in the e-OD account comes to zero or even if the account is in a credit balance. This will be permitted only in case of margin erosion beyond a specified level.
  • Pre-mature closure will be allowed on a specific request by the borrower by visiting the branch.
  • No third-party advance will be allowed
  • Overdraft against deposits in the name of minor will be granted to the natural guardian/guardian appointed by the Court in their individual capacity only for the benefit of the minor. An undertaking to this extent has to be submitted by the guardian online.

Procedure to be followed while availing e-OD against fixed deposit

  • To begin with, log in to the Retail Internet Banking
  • Click on the "Manage Accounts" option
  • Under 'Manage Accounts', click on 'Open OD against Deposit'
  • Select FD on which the OD has to be availed from the drop down
  • Now enter the amount. The amount should be the FD amount less the stipulated margin
  • Term and conditions will be displayed on the screen. Read carefully and then click on the agree button.
  • In case e-OD is being availed on the deposit in the name of a minor, then the guardian has to click the Agree button placed on the right side located at the bottom of the prescribed undertaking.
  • OD Account will be displayed and will appear under 'Operative Accounts' the next day
  • Thereafter you can place a request for the cheque book on IBS and the same will be issued as per the procedure.

ICICI Bank Loan Against Deposits

Key features of the loan

  • Eligibility: Customers holding NRE/NRO/FCNR deposit of ICICI Bank. A loan will be granted either in the name of the borrower or third- party individuals (any individual/corporate).
  • Nature of facility: Demand Loan and Overdraft facility
  • Quantum of loan: 90% of the principal amount of the deposit with a maximum of 5 Crores
  • Repayment: Repayment should be made either by adjustment of the fixed deposit or by fresh inward remittance through normal banking channels. The loan can also be repaid through the funds in the NRO account of the borrower. In case of a loan to a third party, repayment can be made through local rupee account of the borrower.
  • Security: Collateral security of the fixed deposit. Lien will be marked on the deposit in favour of the bank.
  • Interest: As per prevalent guidelines of the bank at the time of availing the loan

Citibank Loan Against Fixed Deposit

Key features of the loan

  • Eligibility: Resident individuals above 21 years of age, Private Limited Companies, Sole Proprietorship/Partnership firms, closely held Public and Private Limited Companies, and Stock Brokers can avail a loan against fixed deposit. Holding a fixed deposit of Citibank is mandatory. Applicants can avail loan against fixed deposit held in the name of members of the same household.
  • Nature of facility: Overdraft facility
  • Quantum of loan: 90% of the value of the deposit with a minimum of 1 Lakh
  • Interest: Competitive rate prevailing at the time of availing the loan
  • Repayment: Tenure should not exceed the maturity period of the fixed deposit
  • Security: Collateral security of the fixed deposit. Lien will be marked in favour of the bank.

Deutsche Bank Loan Against Fixed Deposit

Key features of the loan

  • Eligibility: Customers holding a fixed deposit of Deutsche Bank. A loan will be granted on the fixed deposits in the name of any of the family members, relatives or friends.
  • Nature of facility: Overdraft facility
  • Quantum of loan: Up to 95% of the fixed deposit amount with a minimum of 25,000
  • Interest: Interest will be charged at 2% above the fixed deposit rate. Interest will be charged only on the amount utilised.
  • Tenure: Tenure will be linked to the tenure of the fixed deposit
  • Security: Collateral security of the fixed deposit. Lien will be marked in favour of the bank.
  • Fees and charges:
  • Interest at 24% p.a. will be charged on the overdrawn amount if the overdraft facility is utilised over and above the limit set for the account.
  • GST payable on fees and charges will be as applicable
  • Stamp duty charges will be as per local regulations
  • How to apply for Overdraft facility?

You can apply for the overdraft facility online. You can also apply for the overdraft facility by sending SMS or by calling their customer care division.

Frequently Asked Questions

Who is eligible to avail loan against fixed deposit at SBI?

Individual customers holding TDR/STDR/e-TDR/e-STDR with SBI in a single name only can avail the facility online. Joint account holders can avail the facility at the branches. At branch level loan is also sanctioned against the security of RD/NRE/NRO/RFC and FCNR(B) deposits.

What is the security that the customer has to offer?

The deposit against which the loan will be availed has to be offered as collateral security to the bank. Lien will be marked on the deposit in favour of the bank and custody of the fixed deposit receipt duly discharged will be with the bank.

Is Demand/Term Loan facility available online?

At present, the online facility is restricted to Overdraft only. For availing Demand Loan, the customer has to visit the branch.

What is the extent of Overdraft facility available?

Overdraft facility up to 90% of the value of STDR/e-STDR and up to 75% of the value of TDR/e-TDR can be availed on the internet platform. At branch level, you will be able to avail 90% of the underlying security as either Overdraft facility or Demand Loan.

What is the current rate of interest on the scheme?

Interest will be charged at 1% above the relative time deposit rate.

What is the maximum Overdraft limit?

The maximum Overdraft limit that can be availed against the fixed deposit is 5 Crores, if availed online. There is no specific limit for advances at the branch level.

Is there any minimum amount specified for availing Overdraft facility?

The minimum loan amount is 25,000 if the overdraft facility is availed online. There is no specific minimum limit for advances at the branch level.

Can the overdraft facility be availed in joint names?

For availing overdraft facility online, customers holding TDR/STDR/e-TDR/e-STDR in with SBI in a single name are only eligible. If the Overdraft facility has to be availed jointly, the joint account holders have to visit SBI branches for availing the facility.

What is the repayment period?

  • The maximum repayment period for Overdraft facility availed against STDR/e-STDR is 5 years or the residual period of the deposit whichever is less, subject to a minimum of 6 months.
  • The maximum repayment period for Overdraft facility availed against TDR/e-TDR is 3 years or the residual period of the deposit whichever is less, subject to a minimum of 6 months.
  • For loans sanctioned at the branch level, suitable repayment schedule will be fixed depending upon the repayment capacity of the borrower.

How to avail the facility?

You can avail the facility by visiting the official website of SBI and logging in with your user ID and password. Overdraft against fixed deposit is available under e-Fixed Deposit tab. Alternatively, you can also approach the branch for availing the facility.

Can the online Overdraft facility be availed against Tax Saving Deposit?

No, the Overdraft facility cannot be availed against MODs, Tax Saving Deposit, NRE TDR/STDR, and RD.

Who can avail loan against deposits at PNB?

Customer holding a PNB deposit, either in a single name or joint names can avail Overdraft facility against the deposit. Even third-party deposits are eligible for an Overdraft facility.

What is the margin stipulated for Advances against PNB deposits?

The margin stipulated for Advances against Rupee Term Deposit including NRE deposits depends on the residual maturity period of the deposit at the time of availing the loan. For deposits in the name of the borrower, it ranges from 5% to 20% for the residual maturity period of the deposit between 2 years and 5 years. For third party deposits, the margin stipulated is 25%.

  • For loans granted to Staff/Ex-staff, the margin stipulated is 5% for a loan availed up to 3 Lakhs. For loans availed above 3 Lakhs the margin is as applicable to the general public.
  • For loan against FCNR(B) deposits, the margin depends upon the residual maturity period of the deposit at the time of granting the loan. It ranges between 10% to 30% for deposits in the name of the borrower. For a loan against third-party deposits, the margin stipulated is between 20% to 30% depending upon the residual maturity period of the deposit at the time of granting the advance.
  • For NRO Term Deposits the margin stipulated is 25%

What is the rate of interest stipulated for loans against PNB deposits?

  • For a loan against Rupee Term Deposits including NRE deposits held in the name of the borrower, the rate of interest is 1% above the fixed deposit rate.
  • For a loan against third party deposits, the interest rate is 2% above the fixed deposit rate
  • For a loan against FCNR(B) deposits, the rate of interest is MCLR rate
  • For a loan against FCNR(B) deposit held in the name of the third party, the rate of interest is MCLR+0.75%.

Who is eligible for online overdraft facility against PNB Term Deposit?

Customers using Retail Internet Banking Service are eligible for online overdraft facility against PNB Term Deposit.

What are the minimum and maximum amounts stipulated for the online overdraft facility?

The minimum amount is 25,000 and the maximum amount for Sugam Deposit is 5 Crores and for deposits under other schemes, the maximum amount is below 1 Crore.

Which are the fixed deposits eligible for the overdraft facility?

Fixed deposits in the name of the borrower with a residual maturity period up to 3 years are eligible for the online overdraft facility. Tax Saver/Capital Gains deposits are not eligible for the facility.

What is the loan period stipulated?

The maximum loan period is 3 years or the residual maturity period of the deposit whichever is less.

What is the margin stipulated for the online overdraft facility?

The margin stipulated is 5% for a loan against deposits with a residual maturity period up to 2 years at the time of granting the loan and 7.5% for the loan against deposits with residual maturity period above 2 years and up to 3 years at the time of granting the loan.

For Staff and Ex-staff, the margin stipulated is 5% for loans up to 10 Lakhs and for loans above 10 Lakhs the margin stipulated is as applicable to the general public.

What is the rate of interest for online Overdraft facility against PNB deposits?

The rate of interest charged will be 1% above the deposit rate. For Staff and Ex-staff, the rate of interest will be at par with the deposit rate for loans up to 10 Lakhs and 1% above the deposit rate for loans above 10 Lakhs.

What is the procedure to be followed for availing the online Overdraft facility?

A procedure comprising of a few simple steps has to be followed to avail the E-OD facility against deposits.

  • Begin the process by logging in to the Retail Internet Banking
  • Click on 'Manage Accounts' option
  • Under 'Manage Accounts' option click on 'Open OD Account against FD'
  • Choose the FD against which the facility has to be availed using the dropdown option
  • Enter the OD amount after applying the margin stipulated
  • The eligible OD amount will be displayed on the screen. Entered OD amount should be less than or equal to FD amount.
  • Then the 'terms and conditions' will be displayed on the screen. Read carefully and then click on the 'Agree' button on the right side bottom.
  • If the natural guardian/guardian appointed by the Court is availing e-OD facility against a deposit in the name a minor, then the guardian has to click the button appearing on the right- side bottom below the prescribed undertaking.
  • OD Account number will be displayed and it will appear as 'Operating Account' the next day
  • You can then place a request for a cheque book through IBS and the same will be issued as per the procedure.

What is the extent of loan available against Axis Bank Fixed Deposit?

A loan up to 85% of the value of the fixed deposit will be granted with a minimum of 25,000.

What is the rate of interest stipulated for loans against Axis Bank Deposits?

The rate of interest stipulated is 2% above the fixed deposit rate.

Who is eligible to avail loans against ICICI Bank Deposits?

Customers holding NRE/NRO/FCNR deposit of ICICI Bank are eligible for the loan. A loan will be granted either in the name of the borrower or third- party individuals (Any individual/corporate).

What is the extent of loan available on ICICI Bank Fixed Deposits?

A loan either as Demand Loan or Overdraft facility up to 90% of the value of the fixed deposit with a maximum of 5 Crores is available against ICICI Bank Fixed Deposit.

Who is eligible for a loan against Citibank Fixed Deposits?

Resident Individuals above 21 years, Sole Proprietorship/Partnership firms, Private Limited Companies, closely held Public and Private Limited Companies and, Stock Brokers who are holding Citibank Fixed Deposits are eligible for the loan.

What is the extent of loan available against Citibank Fixed Deposits?

A loan up to 90% of the value of the Fixed Deposit with a minimum of 1 Lakh will be granted against the fixed deposit.

What is the extent of loan available against Deutsche Bank Fixed Deposits?

An overdraft facility up to 95% of the value of the fixed deposit with a minimum of 25,000 will be granted.

What is the rate of interest charged for loans against Deutsche Bank Fixed Deposits?

The rate of interest charged will be 2% above the fixed deposit rate. Also, interest at 24% p.a. will be charged on the amount overdrawn if the overdraft facility is used over and above the limit set for the account.

Who is eligible for a loan against HDFC Bank Fixed Deposit?

Resident Individuals (sole or joint account), Hindu Undivided Family and Private and Public Limited Companies holding an HDFC Bank Fixed Deposit are eligible for the loan.

What is the quantum of loan available against HDFC Bank Fixed Deposit?

  • 75% of the principal amount of the Fixed Deposit. A minimum of 25,000 for a minimum period of 6 months one day is required to open an Overdraft against FD/Super Saver Account, in addition to a zero-balance savings account.
  • Overdraft against FD/Super Saver facility on deposit held in a single name can be availed instantly through net banking.
  • In case of NRE/NRO deposit quantum of loan is 90% of the value of Fixed Deposit and in case of FCNR deposit quantum of loan is 70% of the deposit amount. Overdraft limit will be set up only on NRO CASA Account.

What is the rate of interest charged on loan against HDFC Fixed Deposit?

2% above the fixed deposit rate will be charged only to the extent of the amount utilised and for the period utilised. The interest rate on Overdraft against FCNR deposit will comprise of FCNR deposit rate, Swap cost, and Spread.

OTP is sent to your mobile number

Enter OTP

Resend OTP