Indian Bank Loan Against FD: Features and How to Apply

Indian Bank Loan Against FD: Features, Eligibility, and Application

Indian Bank allows you to take a loan or overdraft against your fixed deposit without breaking it, so your savings continue to earn interest. You can borrow up to 90% of the FD value at an interest rate that is only marginally higher than the FD rate itself.

Key Features

• Loan amount: Up to 90% of fixed deposit value
• Interest rate: FD rate + 1% to 2%
• Repayment tenure: Up to the FD maturity date
• Processing fee: Nil in most cases
• Prepayment: Allowed without penalty

Eligibility for Indian Bank Loan Against FD

• Individual FD holders (single or joint accounts)
• Hindu Undivided Families (HUFs)
• Resident Indians; NRI FD holders subject to specific product terms
• The FD must be active and not under a non-callable lock-in scheme

How to Apply

1. Log in to the IndOASIS app or Indian Bank internet banking at indianbank.net.in.
2. Navigate to Loans and select Loan Against Fixed Deposit.
3. Select the FD you wish to pledge as collateral.
4. Enter the required loan amount (up to 90% of FD value).
5. Review the interest rate and terms, then confirm.
6. The overdraft account or loan is usually activated the same day.

For offline application, visit your Indian Bank branch with your FD receipt and a completed loan application form.

How Repayment Works

For overdraft accounts, interest is charged only on the utilized amount. For term loans, EMIs are scheduled against the FD maturity. The lien on the FD is released once the loan is fully repaid.

Key Takeaways

• Borrow up to 90% of your Indian Bank FD without breaking the deposit.
• Interest rate is FD rate plus 1% to 2%, making it one of the cheapest loan options.
• Apply via IndOASIS app, internet banking, or branch.
• The FD continues to earn full interest during the loan period.

Frequently Asked Questions

How much can I borrow against my Indian Bank FD?

You can borrow up to 90% of your fixed deposit value.

What is the interest rate for Indian Bank loan against FD?

The rate is typically 1% to 2% above your FD interest rate, making it one of the most affordable borrowing options.

Can I apply for a loan against FD through the IndOASIS app?

Yes. The IndOASIS app supports online application for loans against fixed deposits.

Does my FD continue to earn interest after I take a loan against it?

Yes. The FD continues to earn interest at the original contracted rate even after it is pledged as loan collateral.