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Loan against FD (fixed deposit) is a secured loan where you can pledge your FDs as security.
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The loan amount is usually up to 90-95 per cent of the deposit amount.
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Both individual and joint account holders can get a loan against FD.
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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.
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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.
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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
 "retail loans")
