Bank of Baroda Loan Against FD

What is a Bank of Baroda Loan Against FD?

A Bank of Baroda loan against fixed deposit is a simple way to access funds without closing your FD. The facility ensures that your deposit continues to earn interest while you borrow against it. To avail a loan against FD, you need to have a minimum fixed deposit of ₹25,000 with the bank. The interest rate charged on the loan is usually 1% higher than the applicable FD interest rates, making it more affordable compared to unsecured loans.

Key Features of Bank of Baroda Loan Against FD

The Bank of Baroda Loan against FD has several benefits, making it a smart choice for customers. Some of these are as follows:

• Instant Access: Bank of Baroda Bank offers an instant loan against FD if the deposit is made in a single name.
• Pay Interest Only on Used Amount: The interest charged is calculated on the amount used, and the rest of your fixed deposit continues to earn interest at the applicable Bank of Baroda FD interest rates.
• No Need to Close Your FD: The loan on FD helps you cover household or business expenses while keeping your fixed deposit active.
• Broad Eligibility: Bank of Baroda Bank loan against FD is available to resident individuals with single or joint accounts, Hindu Undivided Families (HUF), firms, and companies.

How to Apply for a Bank of Baroda Loan Against FD?

Bank of Baroda offers a convenient and straightforward process to apply for a Loan against Fixed Deposit (FD) 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 Savings > 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 Bank of Baroda branch. Follow these steps:

   • Visit the Branch: Go to your nearest Bank of Baroda 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 a Bank of Baroda Loan Against an FD?

The Bank of Baroda 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 Bank of Baroda Loan Against FD

The Bank of Baroda 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 anytime, 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 amount (after maintaining the 10% margin) is settled from FD proceeds.
• Repayment from Other Accounts: You can repay the loan from any other account you hold within Bank of Baroda, offering greater flexibility in managing repayments.

Key Takeaways

Bank of Baroda loan against FD lets you access up to 90% of your deposit while your FD continues to earn interest. You only pay 1% above the FD rate on your loan amount, making it a cost-effective and straightforward way to meet urgent needs. The process is entirely digital and can be availed easily through NetBanking, giving you quick access without closing your FD.