The Loan against Fixed Deposit is an added feature in the Fixed Deposit product and enables the depositor/accountholder to withdraw a certain percentage of the deposit amount as a loan to cater to his/her various immediate needs.Loan Limit
In case the currency of denomination of FDR and the currency of loan is different, the Bank will not generally finance more than 80% of the face value of the instrument. In case the financing is more than 80%, it needs to be reviewed on monthly basis to guard against the foreign exchange fluctuation risk.
The loan shall be for a maximum tenure of 1 year renewable periodically up to the expiry date of FDR held as security. It should be ensured that loan maturity date is prior to Fixed Deposit Maturity date.
Interest rate on 'Loan against FDR' will be decided by the competent authority from time to time.