Need cash? Loan against fixed deposits is cheaper than a personal loan

Here is how the rares of loan against fixed offered by various banks stack up

Sanjay Kumar Singh
Last Updated at April 20, 2020 01:37 IST

loan

This type of loan is suitable for people who have a low credit score and hence find it difficult to get an unsecured loan.
People who do not meet the income eligibility criteria of lenders can also opt for it
The interest rate charged on them is usually in the range of 1-2.50 percentage points above the fixed-deposit rate
The loan amount can go up to 95 per cent of the fixed deposit
These loans are usually given as an overdraft facility
Interest levied only on amount withdrawn

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