The SBI loan against FD means a loan against a fixed deposit in the State bank of India. You can also call this loan SBI Loan against Time Deposit. Loan against FD in SBI provides a loan on low-interest rate (around 1% mere over related fixed deposit rate) and good repayment time/Loan tenure (3 years to 5 years), and almost nil fees & charges.
Main Highlights of SBI Loan against FD (Fixed Deposit)
- The minimum and maximum loan amount that could be sanctioned in this loan scheme is from 5000 Rs to 5 crore Rs.
- Loan Tenure in terms of different loan aspects will be different (depends on bank), and the maximum loan tenure is from 3 years to 5 years (Details given below).
- The interest rate for an SBI loan against FD is a mere 1% above the related fixed deposit rate.
- The loan amount to be provided is equal to the 85% margin rate of the value of your fixed deposit in the bank.
- Nil Processing fee/prepayment penalties.
- Bank Security/Guarantee – This loan is against Your fixed deposit (FD).
- The loan is available under both Demand and overdraft facilities.
- You can apply through online/app and as well as through offline (by branch).
What is SBI loan Against FD (Fixed deposit)?
In this scheme, any customer can take a loan amount of up to 5 crore Rs on the basis of fixed deposits in the State bank of India. This is SBI’s personal loan against securities scheme, in which any applicant pledged their fixed deposits in favor of SBI bank.
How much Amount of Loan is Provided in the SBI loan against FD Scheme?
Minimum – 5000 Rs (Online overdraft).
Maximum – 5,00,00,000 (5 Crore) Rs (Online overdraft).
Who is eligible for the SBI loan against FD?
- The applicant should be more than 21 years old.
- The applicant must have a fixed deposit (FD) account in the state bank of India (SBI).
- The age of the fixed deposit account or the FD which is to be used as security in favor of the bank must not be matured at the time of applying for a loan against FD.
- The single account holders (single name) that are holding accounts in SBI’s TDR/STDR/e-TDR/e-STDR are eligible.
- Also, the customers holding deposits in SBI’s NRE/RFC/NRO/RD/e-RD, FCNR can also apply for this loan scheme.
- Single customers can also apply through online internet banking for an FD overdraft against TDR/STDR loan.
SBI Loan against FD Document Requirements?
No documents are required when you apply online.
A few common documents can be seen by the bank in case of when you apply offline.
Interest Rate for SBI loan against FD?
The interest rate in this fixed deposit (time deposit) scheme is a mere 1% above the related fixed deposit rate.
|A loan against NRE FD||1% above the rate of interest related to fixed deposits.|
|A loan against NRO FD||1% above the rate of interest related to fixed deposits.|
|Loan against Bank’s time deposit (Fixed deposit) – For Domestic||1% above the rate of interest related to fixed deposits.|
|A loan against Foreign currency Non-Resident bank deposits (FCNR) B deposits.||2.90% over 1-year MCLR (Currently the 1-year MCLR is 7.90%)|
Here the reason for the lower interest rate is because you have already in relation with the bank. Also, as you have some fixed deposit in the bank hence from the side of the bank, the bank is fully secured in terms of loan against securities.
If you did not repay the loan amount then, the bank has the right to close your fixed deposit to cover the loan amount.
Note: The interest rates can change with the passage of time.
Loan Tenure/repayment time for SBI loan against FD?
The loan tenure or the repayment time can be different for individuals. According to the bank, it depends on the repayment capacity of the borrower.
(The repayment capacity is calculated on the basis of loan taken through branches, etc).
When the loan is through online mode with the overdrafts loan facility, a maximum of 3 years loan tenure is provided for the state bank of India’s TDR/e-TDR.
Also, a maximum of 5 years loan tenure is provided for the SBI’s STDR/e-STDR in case of overdrafts loan facility through online mode.
Charges & Fees in SBI Loan against FD?
Processing fee – Nil
Prepayment penalty – Nil
Margin rate – You will get an 85% loan amount of the value of your fixed deposit.
How Can you Apply For SBI Loan against FD?
1. Offline Method – Visit the nearest SBI branch.
2. SBI Yono App
3. Online Method (Internet Banking)
- Go to the official website of SBI.
- Log in with your SBI internet banking credentials.
- Choose e-Fixed deposit.
- Click on Overdraft Against Fixed Deposit.
- Choose a deposit.
- Click Proceed.
- Then click on Submit.
- A high-security password sends to your registered mobile number.
- Enter the password.
- After, that your account will be opened.
FAQ – SBI Loan against FD
How can I get a loan of Rs 1 lakh against FD in SBI?
If you have a fixed deposit (FD) of around 1,20,000 Rs in the State bank of India then, on the current Margin basis (85%) you can easily get a loan of Rs 1 lakh.
SBI Loan against FD Customer Care/Contact information?
- Visit the nearest SBI Branch to solve your all doubts.
- Email – firstname.lastname@example.org, email@example.com
- Toll-free Numbers – 1800112211, 18004253800, 08026599990