Evaluating Loans Against Fixed Deposits
A Fixed Deposit (FD) is basically a type of deposit which gives you a higher rate of interest than a regular savings account. The deposits are made for a fixed period of time, and the interest is paid out only after the completion of this period. A Loan Against Fixed Deposit (LAFD) is one of the smarter options of raising funds by pledging your Fixed deposit as collateral with the lender, instead of breaking the Fixed Deposit lying in the bank. LAFD encourages you to take advantage of your Fixed Deposit and obtain funds on the merits of your FD.
In India, a Loan Against Fixed Deposit is a very popular way of obtaining money from a reputed lender. With low interest rates and options to prepay your loan, the only charge you may end up bearing is probably a processing fee.
How to Apply for a Loan Against Fixed Deposit?
Loan against Fixed Deposit in India have gained considerable popularity in the country owing to their easy accessibility and low interest rates. Bajaj Finserv offers Loan Against Fixed Deposit which can be applied for online, eliminating the need of venturing out to visit a branch. If you are travelling and have access to the Internet, you can quickly fill the form online. Here are the steps you are required to follow:
- Download and fill the online application form.
- Submit the form along with FDR at the nearest branch of the lender
- ECS mandate (only for Non-Cumulative FD)
- Cancelled cheque (only for Non-Cumulative FD)
The application process becomes even easier if you have a FD account with the lender. It is a safe investment that provides you with many advantages. You can read them here. Even though applying and obtaining approval is not tough when it comes to Loans Against Fixed Deposits, do ensure you are eligible and meet the requirements put forth by the lender.
Eligibility Documents for Loan Against Fixed Deposit
If you are a salaried or a self-employed individual you can apply for a LAFD. The lenders would give you a very specific list of criteria which determines your eligibility for the loan. Bajaj Finserv offers Loan Against Fixed Deposit with low interest rates and speedy approvals.
Loan Against Fixed Deposit rates are low in India. Financial lenders would offer Loan Against Fixed Deposits to you at a slightly higher interest rate than the rate at which you opened your FD. For example, if a financial institution pays a 9 per cent rate of interest on a three-year FD, then the rate of interest payable on the loan raised against it would be 11 per cent. Bajaj Finserv makes it so easy to calculate your EMIs as they offer you a loan against Fixed Deposit at 2% above your existing FD rate. To understand what your EMI will amount to, you can use a Loan Against Fixed Deposit Calculator.
To know more about your options, do read the low down on Personal Loans against Fixed Deposits.