Want to avail an overdraft against your recurring deposit to pay off your debts?
Take a look at Fed Rise scheme, an overdraft facility against recurring deposits for debt consolidation.
Federal Bank – Fed Rise (Overdraft Against Recurring Deposit)
This overdraft facility helps borrowers to get funds to meet their urgent financial needs including wedding expenses, travel expenses, medical expenses, etc. against recurring deposits. It can also be used as a consolidation scheme to pay off debts.
Features of Federal Bank Overdraft Against Recurring Deposit
Why this Loan?
- The Federal Bank Overdraft Against Recurring 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 directly depends on the interest rate applicable to the term deposit rate. As of October 2020, the bank levies an interest rate of 2.00% or 2.50% on top of the deposit rate on this loan
Repayment
- The overdraft must be repaid within 10 years or before the maturity date of the deposit, whichever is earlier
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