If we are talking about fixed deposits than we can easily say that that they are one of the most common and secure ways of savings. You can easily avail from any bank. Moreover, you can get a higher rate of interest/return on fixed deposits as compared to normal bank saving accounts. Fixed deposits also serve you a personal loan in case of emergency, some banks provide overdraft facility or personal loan facility against your fixed deposit account.
It helps you to get personal loans generally on lower rates than conventional rates on the personal loan. Documents are also not required under these schemes, residential status, job status are also not required to verify. Yes, there are many lenders or banks available these days that offer personal loan against fixed deposits, wherein you can easily raise short-term money without harming your fixed deposit.
Below are the reason why you have to look at this option
Reasons to take Personal Loan Against Fixed Deposit
- Interest rates on personal loans are usually higher than any other loans available in market. Rates ranging between 12% to 25%. So better to opt loan against your secured / deposit amount in bank.
- If you can take a personal loan against your fixed deposit than interest rates become starts from 11.99% to 15.00% maximum.
- With lower interest rates comes to you the benefit of getting the higher loan amount. And, if you have a long history with the bank, it would be more convenient for you to avail the higher loan amount.
- In loan against fixed deposit is taken by you, so you don’t have to show any security kind of things to bank.
- You can obtain the personal loan within few minutes under loan against fixed deposit condition.
- There is no prepayment penalty charged by the bank or lenders if somehow you failed the repayment of personal loan against FD.
- However, a small processing fee is being charged by the bank, if you avail this type of loan. But, if you maintain a fruitful relationship with your bank, you might get the benefit of half fees waiver from your respective bank.
- Many banks not even charge in case of foreclosure for the personal loan against fixed deposit.
- In case of emergency this type of loan offers you instant liquidity by keeping your fixed deposit secured.
- Another benefit you get is the flexibility for loan repayment with no deadlines and terms.