Have a low credit score? Pledge your fixed deposit as security against loan

retail loans
The interest rate is attractive and obtaining it requires minimal paperwork
  • Loan against FD (fixed deposit) is a secured loan where you can pledge your FDs as security. 
  • The loan amount is usually up to 90-95 per cent of the deposit amount.
  • Both individual and joint account holders can get a loan against FD.  
  • Investors in five-year tax-saving FDs cannot apply for it. Also, you cannot get a loan against an FD that is in the name of a minor. 
  • Lenders do not check the credit score of the borrower when he applies for a loan against FD, which means even those with a low credit score can get this loan. 
  • The benefit of a loan against FD is that it has a lower interest rate, requires minimal paperwork, and there is no prepayment fee. 

: Paisabazaar.com

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