SBI Loan Against FD: Features, Eligibility, How to Apply

SBI Loan Against FD
Home » Education Loan » SBI Loan Against FD: Features, Eligibility, How to Apply

SBI loan against FD is offered as a personal loan. Education loan against fixed deposits is one of the best ways to secure low-interest loans. The funds are readily available and you can get it at any time without breaking the FD or the term deposit. The bank offers this loan at an affordable interest rate and you can use it for any purpose like education or any other purpose. Since this is a secured loan, the interest rate will be low as the term deposit acts as collateral for the loan. Check all the major features, eligibility criteria and other details of the SBI loan against FD.

SBI Loan Against FD: Major Highlights

The SBI Loan Against Fixed Deposit (FD) is offered by the State Bank of India (SBI) and it allows customers to secure a loan by using their fixed deposit as collateral. This type of loan is a great option for depositors who need funds urgently but do not wish to prematurely break their FD and lose out on interest earnings. The loan amount can be up to 90% of the FD value, and the interest rate is usually lower than other unsecured loans since it is secured against the fixed deposit. Check more details below:

ParticularsDetails
Maximum Loan AmountUp to 90% of the FD amount
Processing FeeNIL
Prepayment FeeNIL
Max amount of Loan (For Online Overdraft against Fixed Deposit)INR 5 crore
Interest Rate1% above the FD Rate
Processing Fee– For both Demand Loans and Overdrafts: Minimum 10% up to 5 years of loan tenure or remaining maturity period of the deposit whichever is earlier.

– For Demand Loans: For loan tenure of more than 5 years and up to a maximum of 10 years or the remaining maturity period of the deposit whichever is earlier, the minimum margin will be 15%.

Also Read: Check here some important information on education loan for online degree

Eligibility Criteria for SBI Loan Against FD

The eligibility criteria for a loan against FD is very simple and easy to be fulfilled. The credit score of the borrower shall be good that is above 750 and your debt-to-income ratio shall not be more than 2–25% in order to get a sufficient amount of loan. Check below all the major eligibility criteria for SBI loan against FD:

  • Customers (Single/ Joint Account holders) can avail this loan.
  • Applicable to customers holding the following deposits with SBI:
    • TDR (Term Deposit Receipt)
    • STDR (Special Term Deposit Receipt)
    • RD (Recurring Deposit)
    • NRE (Non-Resident External) Deposits
    • NRO (Non-Resident Ordinary) Deposits
    • FCNR(B) (Foreign Currency Non-Resident Bank) Deposits

How to Apply for a Loan Against FD from SBI?

You can apply for a loan against FD from SBI by visiting the branch or through the internet banking facility. You can also use the SBI YONO application by simply logging in the app. Check below the steps to apply for an SBI education loan against a term deposit:

  • Visit the branch or the official website of SBI
  • Fill out and submit the loan application form along with the relevant documents
  • Wait for the approval from the bank

Also Read: Check out the given link on documents required for education loans to understand the checklist in detail.

SBI Loan Against FD: Repayment

The repayment periods are different for demand loans and overdrafts. The repayment period for a Demand Loan is the remaining maturity period of the deposit or 120 months, whichever comes first. If the customer does not repay the Demand Loan, the account will be closed upon the maturity of the Time Deposit.

In an overdraft, the maximum tenure is either 5 years or the remaining maturity period of the deposit, whichever is shorter. The overdraft limit can be renewed by visiting the branch after the current term expires. Only overdraft accounts opened through branches are eligible for renewal. Overdraft accounts opened through YONO and INB channels must be settled at the maturity of the Time Deposit if not repaid by the customer.

This was some major information on SBI Loan Against FD. Always check the complete terms and conditions before initiating the loan process. Check some common FAQs based on the same.

FAQs

What is an SBI Loan Against Fixed Deposit (FD)?

SBI Loan Against FD is a secured loan offered by the State Bank of India where the borrower uses their fixed deposit as collateral. This allows customers to access funds without breaking their FD and losing out on interest.

Who is eligible for an SBI Loan Against FD and what criteria must be met?

Eligibility for an SBI Loan Against FD is straightforward. Customers holding single or joint accounts with SBI can avail of this loan. It applies to several types of deposits including TDR (Term Deposit Receipt), STDR (Special Term Deposit Receipt), RD (Recurring Deposit), NRE (Non-Resident External) Deposits, etc.

How can one apply for an SBI Loan Against FD?

Applying for an SBI Loan Against FD is a simple process. You can visit an SBI branch, use the internet banking facility, or log into the SBI YONO app.

What are the repayment terms for an SBI Loan Against FD?

The repayment terms for an SBI Loan Against FD differ based on whether it is a demand loan or an overdraft. For demand loans, the repayment period is up to the remaining maturity period of the deposit or 120 months, whichever is shorter. Overdrafts have a maximum tenure of 5 years or the remaining maturity period of the deposit, whichever is shorter.

Are there any fees associated with an SBI Loan Against FD?

There are no processing or prepayment fees associated with an SBI Loan Against FD, making it a cost-effective borrowing option.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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