One of the easiest ways to get funding is through a loan against fixed deposit, which can be acquired even by people without a credit score.
How do Banks Provide Loans Against FDS? A bank issues a loan against FD by considering the deposited amount as collateral. This loan is considered as an overdraft or demand loan. Therefore, it is given in the form of an overdraft. The Interest Rate on Loans Against FD The interest rate on this loan type is much less than a traditional loan interest rate. The interest rate charged on loan against FD is around 2-3%, whereas the interest rate on other loan types is around 6-8%. Documents needed for Applying for a Loan Against FD The banks require only FD receipt and loan application form for completing the loan procedure. Therefore, the application process is fast and hassle-free compared to any traditional loan. Benefits of loan against FD:
0 Comments
Leave a Reply. |
CATEGORY
About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
|