Need cash? Loan against fixed deposits is cheaper than a personal loan

  • This type of loan is suitable for people who have a low credit score and hence find it difficult to get an unsecured loan.
  • People who do not meet the income eligibility criteria of lenders can also opt for it
  • The interest rate charged on them is usually in the range of 1-2.50 percentage points above the fixed-deposit rate
  • The loan amount can go up to 95 per cent of the fixed deposit
  • These loans are usually given as an overdraft facility
  • Interest levied only on amount withdrawn

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