Want to avail a loan against your term deposit to pare down your debts?

Take a look at Federal Bank Loan Facility Against Fixed Deposit (FD).

Federal Bank Loan Against Fixed Deposit

This loan helps borrowers to get funds to meet their urgent financial needs including wedding expenses, travel expenses, medical expenses, etc. against term deposits. This scheme can also be repurposed into a consolidation loan to pay off their high-interest credit card debts and loans, thereby consolidating their debts.

Features of Federal Bank Loan Against Fixed Deposit

Why this Loan?

  • The Federal Bank Loan Against Fixed Deposit is designed to help Federal Bank customers avail a loan against a fixed deposit, cash certificate or recurring deposit to meet their urgent financial needs including child’s education expenses, wedding expenses, expenses for overseas or domestic travel as well as for consolidating debts
  • The borrower can get up a loan up to 90% of the fixed deposit without liquidating it

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to 90% of the term deposit

Interest

  • The interest rate applicable to this loan may range from the sum of interest rate applicable to the Federal Bank term deposit and a factor of 2.00%. For third-party fixed deposits, the interest rate is 12.50% or Deposit Rate + 2.00%, whichever is higher

Repayment & Margin Money (Borrower’s Contribution to Total Cost)

  • As of October 2020, this information is not mentioned on the bank’s website. We suggest talking to a bank representative before applying for this loan

Processing Charges

  • The bank does not charge money for processing this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Term Deposit certificate and related documents

Reference Facts:

  • Federal Bank Website: www.federalbank.co.in
  • Headquarters: Kochi, Kerala
  • Call Centre Toll-Free Number: 1800 425 1199, 1800 420 1199