Bandhan Bank Loan Against FD: How It Works
Bandhan Bank Loan Against FD: How It Works
Bandhan Bank offers a loan against your fixed deposit (FD), letting you borrow up to 90% of the FD value without breaking it. This is a quick way to get funds at a lower interest rate than a personal loan, while your FD continues to earn interest.
Key Features of Bandhan Bank Loan Against FD
- Loan amount: Up to 90% of FD value.
- Interest rate: Typically 1% to 2% above the FD interest rate.
- Repayment: Flexible, usually as an overdraft facility or EMI.
- Processing time: Fast, often same day for existing customers.
- Collateral: Your FD itself serves as the security.
How to Apply for Loan Against FD at Bandhan Bank
- Visit your nearest Bandhan Bank branch.
- Carry your FD receipts and a valid photo ID.
- Fill in the loan application form.
- The bank assesses the FD value and approves the loan amount.
- Funds are credited to your savings account, usually the same day.
Can I Apply Online?
You can check eligibility and initiate the process through mBandhan or the net banking portal. For full processing and documentation, a branch visit or a call to customer care may be required.
Overdraft vs EMI Loan
- Overdraft against FD: You get a credit limit linked to your FD. Draw and repay as needed. Interest is charged only on the amount used.
- Term loan against FD: Fixed loan amount disbursed upfront with regular EMI repayment.
FAQ
What is the interest rate for loan against FD in Bandhan Bank?
The rate is generally 1% to 2% above the FD interest rate. For example, if your FD earns 7%, the loan rate would be around 8% to 9%. Check the latest rate at your branch or on the website.
Will my FD continue to earn interest if I take a loan against it?
Yes. Your FD remains intact and continues to accrue interest throughout the loan tenure. Only if you default and the bank liquidates the FD does it stop earning.
Can I foreclose a Bandhan Bank loan against FD early?
Yes, you can repay the loan at any time. There are usually no prepayment penalties for loans against FDs, but confirm with your branch at the time of application.
Key Takeaways
- Borrow up to 90% of FD value at 1% to 2% above FD rate.
- FD continues to earn interest during the loan period.
- Available as overdraft or term loan.
- Fast processing, often same day for existing customers.
- No need to break your FD to access funds.
