 "Have a low credit score? Pledge your fixed deposit as security against loan")
The interest rate is attractive and obtaining it requires minimal paperwork
- Loan against FD (fixed deposit) is a secured loan where you can pledge your FDs as security.
- The loan amount is usually up to 90-95 per cent of the deposit amount.
- Both individual and joint account holders can get a loan against FD.
- Investors in five-year tax-saving FDs cannot apply for it. Also, you cannot get a loan against an FD that is in the name of a minor.
- Lenders do not check the credit score of the borrower when he applies for a loan against FD, which means even those with a low credit score can get this loan.
- The benefit of a loan against FD is that it has a lower interest rate, requires minimal paperwork, and there is no prepayment fee.
Rates as on December 4, 2019 | Source: Paisabazaar.com
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%