Need emergency cash? Borrow against fixed deposit instead of liquidating it

During financial emergencies, instead of liquidating your investments, take a loan against them Among the most convenient and cheaper options is a loan against bank fixed deposit (FD) Banks charge interest rates of 1-2.5 per cent above the existing FD rate. Say, if FD is at 7.5 per cent. The bank would offer loan against FD at 8.5-10 per cent Banks don't check credit scores to lend against FDs, which makes it suitable for borrowers with a low credit score The documentation is minimum, there is no processing fees, and the FD continues to earn interest even during the.....

Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.