Loan against Fixed Deposit
Aside being in fact, an overdraft of the amount the loan applicant has in fixed deposits, it is similar in operation to personal loans. It could as well be treated as a loan on demand. The Fixed loan is given to a person may use it for various purposes or personal use. Since banks provide such loans on the basis of a person credentials, so it is a not difficult to get such loan. It’s important for a person to have
It’s important for a person to have a clear plan because it is one very important requirement for convincing banks that your personal business has a capability of repayment.
Then banks rely on person’s background, property or assets, earlier loan history or dedication towards their work. Banks prefer individuals who have insured their property for business. These days, banks are also working on giving more easy and lucrative loans choices for first-time business people. For the existing businesses, this loan is given in following ways:
Bank overdraft limits – One can withdraw more amount than deposited.
Term loans – Amount given for fixed tenure at an applicable rate of interest: 3 years for the short term business loan and 10 to 15 years for the long term business loans.
Bill Discounting – The short-term borrowing can be used to improve company’s cash flow position and working capital.
There are lots of banks which charge various rates of interests on the fixed deposit the highest is the 2% more then what the fixed deposit is drawing at the current time and once you get this approved your fixed deposit will be marked a lean. There are lots of people in need of money and if you are one them then you will never have a problem.
So if you look at a fixed deposit loan then things are tough and you and get the money on the same day also without too much of problem, so what are you waiting for.
- Proof of a fixed deposit account with the bank in question.
- The loan is accessible by both individuals and corporate bodies.
Calculation of loan eligibility amount:
- The range of loan given by banks from fixed deposits in India falls within 75%-90%.
- The minimum amount given in this loan is Rs. 25,000 on the average.
Down Payment & EMI Calculation:
This is not necessary, and as such there are no down payments for the loan against fixed deposits. However, a little processing fee is usually charge.
There is no fixed year’s tenure for repayment of this sort of loan. If you are unable to pay until the date of maturity of the fixed deposit, the fixed deposit continues as the loan conditions will adjust.
Interest rate bank wise:
The interest on this sort of loan is determined from the amount that is borrowed and not on set limit.
Top five banks providing loan against insurance policy in India:
- ICICI Bank.
- HDFC Bank.
- Axis bank.
With the approach of advanced technical correspondence and data innovation many banks in India have encouraged the various kinds of transaction systems like the Web accounting, ATM System, electronically exchange of assets and brisk dispersal of data between diverse distinctive branches. With the passage of more remote banks and, in addition, private division banks, the tilt, and agile-footed structure have become the future of India.
Consequently, such things have ventured up the development possibilities in managing Indian economic systems. Despite the fact that, the business sector of India has done enough in one year to support the economic structure of the country, the banks have figured out to provide benefits in the second from last quarter of 2008 to its customers. The State Bank of India has pronounced a quarterly benefits ascent of 40% in the course of the last quarter.
- 1 Loan against Fixed Deposit
- 1.1 It’s important for a person to have a clear plan because it is one very important requirement for convincing banks that your personal business has a capability of repayment.
- 1.2 Eligibility:
- 1.3 Calculation of loan eligibility amount:
- 1.4 Down Payment & EMI Calculation:
- 1.5 Tenure Years:
- 1.6 Interest rate bank wise:
- 1.7 Top five banks providing loan against insurance policy in India: