In an emergency, we all need money. When this happens, we borrow money from banks, but the application process is highly drawn-out and takes a lot of time. We have provided details regarding a loan you can quickly apply for. You may apply for this loan if you have an account with the State Bank of India (SBI) and a fixed deposit or FD. It is also difficult to qualify for a loan from SBI against a fixed deposit. Any citizen of India may apply for this loan. Along with individuals, self-employed people, partnership businesses, associations, and trusts may also borrow money against FDs.
What is special about this loan?
The fact that your CIBIL score is hidden from view with this loan is its most significant feature. You can borrow up to 95% of the total amount of your FD from SBI. You can easily borrow between 75 and 90 percent of your FD under this. There are no processing fees associated with this loan. You receive both overdraft and demand loan options in this. Through an online overdraft, you can get a minimum loan of Rs 5,000. A maximum of Rs 5 crore may be borrowed from this form of a loan.
How to get a loan against a fixed deposit?
Obtaining a loan from SBI in exchange for a fixed deposit is quite simple. You won't need to complete any papers for this. Moreover, you can also apply for this loan through SBI's YONO mobile banking app or internet banking. In addition to this, you can get in touch with the bank branch.
How to apply through net banking?
First of all, log in to SBI Net Banking. Choose the e-FD option from the menu list. Then click "Overdraft against FD" from the menu. All of the FDs you have will be listed in front of you. Choose any of the ones that are currently operational and ask to apply for an overdraft. Before clicking Proceed, verify the overdraft amount, applicable overdraft interest rate, and expiration date. After that, your registered cellphone number will prompt you to enter the password. Your loan application will be finished once you've done this.
When and how will you get the loan amount?
The amount of loan will be credited to your account within a few days of submitting your loan application for a Loan Against a Fixed Deposit. This sum will be deposited into the same account that your FD is linked to.
How much will the interest be?
The bank gives you this loan at a relatively low-interest rate. The loan's interest rate will also decrease when you pay it back. The interest rate on it will be 1% more than the interest rate on your FD. For example, if your FD has a 5 percent interest rate, your loan payment will be 6 percent.