What is Loan against Fixed Deposit
Personal loan are usually unsecured and based on the borrower’s integrity and ability to pay and are granted for personal use. Granting a personal loan always carry a greater amount of risk than giving a home loan or secured loans. If the borrower defaults for some reasons without any collateral security, the lending institution has nothing to sell off and recover the amount loaned out.
So if you have some fixed deposit lying idle with you and you do not want to use it for meeting a personal need immediately, can be used to get a loan from any bank or other lending institution.
How To Get Loan on Fixed Deposit From SBI
Loans are taken for various purposes. If you are having an account in SBI or any other bank and need money for some professional or business purpose it is best to get an overdraft against Fixed Deposit. Your limit will be 90% of the face value of deposit, and including the interest accrued on the deposit. State Bank of India provides loans on its own Fixed Deposits as per the rate mentioned. It is the best type of loan to meet any emergency. Your investment remains, safe and the clearing of the loan are easy. The interest rate charged is linked to SBI Base Rate against FCNR deposits or around1 % above the rate of FD.
Use Fixed Deposit Calculator
Fixed Deposit Calculator (FD Calculator) is used for calculating the maturity amount of Fixed Deposit under different without compounding and compounding interest options, viz. Yearly, Half-yearly, Quarterly, Monthly, and Daily. Amount of loan against any fixed deposit is ascertained and sanctioned by using fixed deposit calculator as the effective yield is the actual return on your Fixed Deposit.
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