 "Need emergency money? Don't break fixed deposit, borrow against it")
- In case of an emergency, instead of breaking a fixed deposit (FD), you can get a loan against it.
- Banks usually lend up to 90 per cent of the value of your FD. The limit varies from one bank to another.
- Loan against FD is given by banks as an overdraft facility.
- The rate on such loans is 1 and 2 percentage points above the FD rate. The tenure is up to five years.
- If you fail to service the loan, the bank can foreclose your FD to recover its money.
- This loan is not available on five-year tax saving FD.
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