Loan Against FD - Axis Bank

Axis Bank depositors have a better option when a crisis arises than to forfeit their fixed deposit investment: they can take a loan against their FD. All Bank fixed deposit holders have access to this alternative to continue receiving income on their FDs and meet their cash needs without liquidating them.

What is a Loan Against FD Axis Bank?

Investors with fixed deposit accounts are given the option to borrow against their deposits. With this option, depositors can borrow up to a specified percentage of their deposits (85 per cent in Axis Bank).

This sum represents the depositor's initial investment or the primary amount. For as long as the loan balance is not repaid, the corresponding FD certificate is held at the Bank. The Bank maintains the right to seek repayment from the FD in the event of non-payment of the loan.

However, as long as the repayment is made on time, the FD account will continue to generate interest until it matures.

Also, check - Axis Bank Fixed Deposit Interest Rates 2023

Axis Bank Loan Against FD Interest Rate

Compared to personal (unsecured) loans, the interest rate for overdrafts against FDs is lower. The loan against FD interest rate is 2.0% higher than the interest rate earned on your Bank FD.

Interest is assessed on the actual amount used and for the duration of use. As with other loans, there are no EMIs or post-dated checks necessary.

Benefits of Loan Against Fixed Deposit Axis Bank

• There is no cost for early repayment of the loan.
• This is a highly beneficial form of credit when you don't have a credit history.
• The approval and disbursement process is quick, simple, hassle-free, and flawless compared to other loans.
• Take advantage of a loan amount up to 85% of the set deposit amount. Rs. 25,000 is the minimum loan amount.
• Instead of withdrawing your FD in an emergency, you can take out a loan on it. Your FD withdrawal will result in a penalty charge.
• The amount used and the time it was used will determine whether the interest is charged.
• The overdraft facility is offered for at least three months.
• There is no processing cost for loans.

Tenure of the Loan Against FD in Axis Bank

The loan secured by the Bank fixed deposit uses the Bank FD as collateral. So long as the Bank FD is active, the loan's length remains unspecified. Additionally, you have the choice to pay back the loan within that time.

Who is Eligible for the Loan Against Axis Bank FD?

The client must meet the following requirements to be eligible to apply for a loan against an Axis Bank fixed deposit:

• Must be an Indian citizen.
• Customers with active Axis Bank FDs may use the Bank's ODFD service.

How Can I Apply for a Loan Against FD in Axis Bank?

Below is a description of the process for applying for a loan against the money that is currently in the Axis Bank FD account:

• Step 1: Visit /retail/loans/loan-against-fixed-deposit/ on the axisbank website.
• Step 2: Then click "Apply Now."
• Step 3: You can log in using your mobile number, birth date, and PAN on the following page.
• Step 4: You can also use your debit card information or online banking credentials to log in.
• Step 5: Once the necessary information has been input, in the event that you used the cellphone number, date of birth, and PAN, click on "Send OTP."
• Step 6: Activate the OTP.
• Step 7: To apply for a loan, follow the instructions on the following page.

Charges Associated with a Loan Against an FD from Axis Bank

• There are no upfront fees.
• Zero processing charges
• Free of renewal fees (of overdraft facility)
• The interest levied at a rate of 2% over the FD rates offered by Axis Bank
• Cash withdrawals from the home branch are free of charge.

Overdraft

Along with offering a loan against term deposits, Axis Bank also offers an overdraft facility. By creating an OD Account, depositors can utilize it. The Bank also gives you access to internet banking, a chequebook, and an ATM card along with this account.

Whenever necessary, one can use these to draw the necessary amount up to the overdraft limit. This facility is provided for a minimum of three months.

FAQs

Q1. If I'm a third-party customer, may I get a loan against my fixed deposit?

Yes, Axis Bank also accepts loan requests from consumers of other businesses. However, no matter the loan size, an interest rate of around 4% will be applied.

Q2. Will the Bank impose any penalties or fees if I want to close my fixed deposit before the term is up?

No. The Bank does not impose any fees when an account is closed early.

Q3. What is the largest loan amount that may be obtained through the loan against the fixed deposit program at Axis Bank?

The highest amount that may be borrowed is unrestricted. However, if the loan amount is less than Rs. 25,000, the Bank would not allow it.

Q4. Can I make material transfers of the loan amount?

Borrowers are only permitted to use borrowed funds for the intended purpose. Moreover, without the Bank's approval, they are not allowed to make any significant transfers from such funds to their group firms.

Q5. How can I apply for a Loan against FD from Axis Bank offline?

Customers must fill out an application form at the local Axis bank location in order to enjoy the service. The Bank will then carry through its processes, and the branch executive will be able to give you specific information if you have any questions.