You are here: Home » PF » News » Loans
Planning to go abroad? Check with insurer if it will cover coronavirus
icon-arrow-left
Tips for picking up a classy vintage car for those with a deep passion
Business Standard

Need emergency money? Don't break fixed deposit, borrow against it

Loan rate is 100-200 basis points higher than the FD rate

Topics
loan against FD | fixed deposit | loan against fixed deposit

Bindisha Sarang 



rupee
Loan against FD is given by banks as an overdraft facility

  • In case of an emergency, instead of breaking a (FD), you can get a loan against it.
  • usually lend up to 90 per cent of the value of your FD. The limit varies from one bank to another.
  • is given by as an overdraft facility.
  • The rate on such 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 FD.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Fri, March 06 2020. 11:47 IST

RECOMMENDED FOR YOU

.