The State Bank of India (SBI) is a public sector financial services and banking statutory body headquartered in Mumbai, India. With a 23% market share in assets, SBI is the biggest bank in the country. It is a complete platform for people willing to buy personalized financial products and services.
If you are an SBI customer, here is a good news for you. All SBI customers can now avail loans against fixed deposits easily. Non-SBI customers should become the customers of SBI to benefit from this facility. It has been confirmed by the official sources that loans against FDs are offered without breaking the existing FD accounts. While individual SBI FD accountholders can borrow loans online, joint accountholders need to get it done at a bank branch.
How does this product help? Many people do not like to liquidate their FDs since they have to pay the penalty and lose the interest. Banks start offering lower interest rates on the broken FD accounts. SBI loans against FDs will safeguard you from such financial hassles and help you manage the unexpected expenses.
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See Also: Fixed Deposit Interest Rates 2019
The customers seeking to avail SBI loans against FDs can either login into their online banking profiles or apply via the OD against FD link under the e-Fixed tab or visit the bank branch in person to apply for the same.
See Also: What is Meant by Fixed Deposit?
Mr Ganesh has opened an FD of Rs.1 lakh for 2 years with SBI. He later decided to avail a loan against his FD account. A credit limit of 90% has been approved by the bank at an interest rate of 10%. If he withdraws Rs.90,000 on the first of October and repays the loan on the first of the next month, which is November, then he has to pay the interest only on Rs.90,000 for one month.
Investment period |
For regular deposits |
For Senior Citizens |
7- 45 days |
4.5% |
5.00% |
46-179 days |
5.50% |
6.00% |
180-210 days |
5.80% |
6.30% |
211-364 days |
5.80% |
6.30% |
1 year to one day less than 2 years |
6.50% |
7.00% |
2 years – one day less than 3 years |
6.25% |
6.75% |
5-10 years |
6.25% |
6.75% |
The State Bank of India provides multiple FD options to customers for a fixed term. It does provide several benefits to its FD accountholders. For example, the bank pays the interest on the deposit only at the maturity time. The nomination facilities are available. The extra interest of 0.25% is paid by the bank to senior citizens. The auto-renewal facility is also available.
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