A snapshot of loan against fixed deposit by various banks with details

Here's how the loan against fixed deposit by different banks stack up

• When a person is in need of short-term emergency funds, loan against fixed deposit (FD) can work out to be  a good option

• Interest rates are lower than on  personal loan and loan against gold

 

• There is no processing fee, paperwork is minimal, it's sanctioned quickly, and repayment tenure is flexible. The borrower needs to repay it before the FD matures.

 

• Your FD continues earning interest, while the loan comes at a rate that is 100-200 basis points above your FD rate. That means the effective rate of interest is just 1-2% on the loan

 

• At the cost of