You are here: Home » PF » News » Loans
Poor quality data, late reporting causing trouble with credit scores
Business Standard

Have a low credit score? Pledge your fixed deposit as security against loan

The benefit of a loan against FD is that it has a lower interest rate

Topics
loan against FD | loan against securities | home loan rates

Bindisha Sarang  |  New Delhi 



retail loans
retail loans

The interest rate is attractive and obtaining it requires minimal paperwork
  • (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 .
  • 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 is that it has a lower interest rate, requires minimal paperwork, and there is no prepayment fee.
Have a low credit score? Pledge your fixed deposit as security against loan
Rates as on December 4, 2019 | Source: Paisabazaar.com

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: Sun, December 08 2019. 21:27 IST

RECOMMENDED FOR YOU

.