HDFC Bank Loan Against FD

What is an HDFC Bank Loan Against FD?

HDFC loan against FD, also known as HDFC Bank Super Saver Facility, is a credit facility that enables you to borrow up to 90% of your fixed deposit value without breaking it. You only pay an additional 2% charge over the FD interest rate on the withdrawn amount for the duration the loan is outstanding. A minimum FD amount in HDFC Bank of ₹25,000 with a minimum tenure of 6 months and 1 day is required to avail this facility. The loan against FD ensures your fixed deposit keeps earning interest while you borrow. 

Key Features of HDFC Bank Loan Against FD

The HDFC Bank overdraft against fixed deposit has several benefits, making it a practical choice for customers. Some of these are as follows:

• Low Interest Rate: Interest is charged just 2% above the prevailing HDFC Bank FD interest rates on the loan against FD, and it applies only for the period the funds are utilised.
• Pay Interest Only on Used Amount: With the HDFC Bank loan against FD, you earn interest on the full deposit while paying just 2% interest on the loan amount.
• Wide Eligibility: HDFC Bank loan against FD is available to resident individuals with single or joint accounts, Hindu Undivided Families (HUF), and private and public limited companies.
• Repayment Anytime: The HDFC Bank loan against FD can be repaid without extra fees or penalties.
• Pay Interest Only on Used Amount: Interest is charged only on the amount you withdraw against the loan on FD. This helps you save on borrowing costs, as you only pay interest on the funds you use, not on the total available credit. 

How to Apply for an HDFC Bank Loan Against FD?

HDFC Bank offers a convenient and simple process to apply for a Loan against Fixed Deposit (FD), either through NetBanking or by visiting the branch. Here’s how you can apply:

1. Online Loan Application 

   Applying for a Loan against FD through NetBanking is quick and easy. Just follow these steps:

   • Log in to NetBanking: Sign in using your Customer ID and password
   • Visit Fixed Deposit: Go to Save > Deposits > Fixed Deposit
   • Select the FD: Choose the FD you want to use
   • Initiate Loan Request: Click Use Deposit to Protect against insufficient funds
   • Select Loan Facility: Choose Overdraft against Fixed Deposit Super Saver
   • Confirm and Submit: Review and submit the loan request.

2. Offline Loan Application 

   If you prefer applying offline, you can easily visit your nearest HDFC Bank branch. Follow these steps:

   • Visit the Branch: Go to your nearest HDFC Bank branch
   • Request the Loan: Inform the representative that you want to apply
   • Submit Documents: Provide your ID proof and FD receipt
   • Select the FD for Loan: Choose the FD with help from the representative
   • Review the Terms: Check the loan details, including interest and amount
   • Complete Paperwork: Fill out and submit the forms
   • Receive Loan Details: The bank will process and provide the loan details

Who Should Consider an HDFC Bank Loan Against an FD?

The HDFC Bank loan against FD suits a wide range of customers. These include:

• Investors with Tax-Saving FDs: Tax-saving FDs come with a 5‑year lock‑in period. A loan against FD lets you access funds when needed without closing the deposit.
• Individuals Facing Short-Term Cash Needs: If you need funds for medical expenses, education fees, travel, or any urgent requirement, this option offers quick access to money without closing your FD.
• Small Business or Self-Employed Professionals: Those running businesses or working independently can use the loan against FD to manage working capital or short-term operating costs.
• People Avoiding High-Interest Loans:  If you want to avoid personal loans or credit card debt, this facility offers a lower interest rate using your FD as security.

Repayment Options for HDFC Bank Loan Against FD

The HDFC Bank loan against FD offers flexible repayment choices that make it easy to manage your finances. Here are the key options:

• Repay Anytime: You can repay the loan against FD whenever you want, without a fixed EMI schedule. There is no obligation to pay the entire amount in one go. 
• Multiple Payment Modes: Repayment can be done through NetBanking, NEFT, UPI, or by visiting a branch.
• Partial or Full Repayment: Depending on your convenience, you can clear the loan in parts or repay the entire amount in one go.
• Automatic Adjustment on FD Closure: If the FD matures or is closed, the outstanding loan amount is automatically settled from the FD proceeds.
• Repayment from Other Accounts: You can repay the loan from any other account you hold within HDFC Bank, offering greater flexibility in managing repayments.

Key Takeaways

HDFC Bank overdraft against FD gives you access to up to 90% of your FD funds while your savings continue to earn interest. The interest you earn is based on the prevailing FD interest rates. With just an additional 2% charge above the FD rate on your loan amount, it proves to be a simple and cost‑effective way to meet urgent needs. The process is completely digital and can be availed easily through NetBanking, giving you quick access without closing your FD.