Bandhan Bank Loan Against FD

What is a Bandhan Bank Loan Against FD?

Bandhan Bank loan against fixed deposit is a secured credit facility that provides access to borrow funds without closing your FD. Your deposit continues to earn interest, while you gain access to instant liquidity through a Loan Against FD at a lower interest rate than personal loans or credit cards. With quick loan disbursement and a flexible repayment tenure of up to 5 years, this option is ideal for handling medical emergencies, short-term financial gaps, or business-related expenses.

Key Features of Bandhan Bank Loan Against FD

Here are the main highlights of the loan against FD Bandhan Bank offers:

• Interest Rate: The interest rate on a loan against FD is 1% to 2% higher than your fixed deposit rate, including Bandhan Bank FD interest rates, making it a more affordable option compared to unsecured personal loans.
• Pay Interest Only on Used Amount: When availed as an overdraft, interest is charged only on the amount you withdraw, not on the entire sanctioned limit, helping you reduce borrowing costs.
• No Repayment Charges: Repay the loan before the tenure ends without any penalty or extra charges.
• Quick Disbursal: Minimal paperwork and fast processing ensure funds are available quickly for emergencies or urgent needs.
• Easy Eligibility: Available to all existing Bandhan Bank term deposit holders, whether individual or joint account holders.

How to Apply for a Bandhan Bank Loan Against FD?

Applying for a Bandhan Bank loan against fixed deposit is a simple process. You can do it online or by visiting your nearest branch.

1. Online Loan Application

   Skip the queues and get your loan processed in minutes by following these simple steps:

   • Log In: Sign in to your Bandhan Bank net banking portal using your registered user ID and password.
   • Navigate to the Loan Section: From the main menu, go to the “Loans” or “Fixed Deposit” section.
   • Select Loan Option: Click on “Loan Against FD” to proceed with the application.
   • Enter Loan Details: Choose the FD account you wish to pledge, then enter the desired loan amount and repayment tenure.
   • Review and Confirm: Read through the loan terms, interest rates, and repayment conditions before confirming.
   • Submit Application: Submit your request online. Once approved, the loan amount will be credited to your linked account.

2. Offline Loan Application

   If you prefer personal assistance, here’s how you can get your loan processed at the branch:

   • Visit the Branch: Go to your nearest Bandhan Bank branch during working hours.
   • Request Loan Service: Inform the bank representative that you wish to apply for a loan against your fixed deposit.
   • Complete the Application Form: Fill out the loan application form carefully, ensuring all details are correct.
   • Submit Required Documents: Provide your FD receipt, KYC documents, and any other documents requested by the bank.
   • Verification and Processing: The bank will verify your application, check your eligibility, and assess the pledged FD.
   • Loan Sanction and Disbursal: Once approved, the sanctioned loan amount will be credited to your account, usually on the same day.

Who Should Consider a Bandhan Bank Loan Against an FD?

A loan on FD is not just a stop-gap arrangement; it’s a strategic financial tool. Here’s who can benefit the most from it:

• Tax-Saving FD Holders: With a 5-year lock-in on tax-saving FDs, a loan against FD allows you to access funds without breaking your deposit.
• For Urgent Cash Requirements: Ideal for covering medical bills, education fees, travel, or other short-term needs without liquidating your FD.
• Business Owners & Self-Employed: Useful for managing working capital or meeting short-term business expenses without resorting to unsecured loans.
• For Avoiding Costly Debt: A smart alternative to personal loans or credit cards, offering lower interest rates by using your FD as collateral.

Repayment Options for Bandhan Bank Loan Against FD

Bandhan Bank offers flexible repayment options to suit different financial situations:

• Flexible Repayment: Repay your loan against FD anytime without a fixed EMI schedule. No need to clear the full amount in one go.
• Multiple Payment Options: Make repayments via Bandhan Bank NetBanking, NEFT, UPI, or by visiting a branch.
• Partial or Full Repayment: Choose to repay in parts or settle the entire loan amount at your convenience.
• Automatic Adjustment on FD Maturity: If the FD matures or is closed, the outstanding loan is automatically deducted from the FD proceeds.
• Repayment from Other Bandhan Bank Accounts: You can also repay the loan from any other account you hold within Bandhan Bank for added flexibility.

Key Takeaways

A Bandhan Bank loan against FD lets you borrow up to 90% of your deposit without closing it, making it a smart way to access funds while your savings continue to earn interest. Interest rates are affordable, usually just 1% to 2% higher than your FD rate, making it a more cost-effective option than personal loans. The application process is quick and hassle-free, with options to apply online or at a branch. Repayment is flexible, allowing you to choose from EMIs, lump sum, or interest-only plans. Overall, it is a convenient solution for emergencies or short-term cash needs without disrupting your investment.