Bank of India Loan Against FD

What Is Bank of India Loan Against FD?

The Bank of India (BOI) loan against FD facility allows you to use your Fixed Deposit (FD) as security to get a loan or overdraft. Your deposit does not have to be broken; it remains active and continues to earn Bank of India FD interest rates. Repayment can happen by adjusting the outstanding loan against the FD when it matures or by making fresh rupee payments through local banking channels. This facility is offered as a rupee (INR) loan for both personal and business use.

Features of Bank of India Loan Against FD

Bank of India FD interest rates are competitive compared to many other banks. The features of the Bank of India loan against FD are:

• Secured via FD: Your fixed deposit acts as collateral, reducing risk for the bank.
• Emergency Funds: With Bank of India loan against FD, you can get quick access to money during emergencies while your FD remains intact.
• Rupee Overdraft / Loan: Available in Indian Rupees (non‑repatriable deposit).
• Repayment via Deposit: BOI allows repayment either by adjusting the outstanding amount from the FD when it matures, or through fresh inward remittance / local rupee funds.
• Overdraft Facility: The facility works as an overdraft, allowing you to withdraw funds as needed instead of taking a lump‑sum loan.

How to Apply for a Bank of India Loan Against FD

Bank of India loan against FD can be applied in both online and offline mode.

Online Process

Step 1: Visit BOI Internet Banking and log in.

Step 2: Navigate to the Loans / Advances section.

Step 3: Look for an option related to “Loan / Overdraft Against Securities / Deposits” (if available).

Step 4: Select your FD (if pledge‑able) or declare which FD you want to use as collateral.

Step 5: Enter the proposed loan / OD amount, tenure (if applicable), and other required details.

Step 6: Submit your request. The bank may ask you to visit a branch for lien‑marking of the FD.

Step 7: After verification, the bank disburses the loan or OD limit to your linked account / as per process.

Offline Process 

Step 1: Go to your home branch of Bank of India where your FD is held.

Step 2: Request the “Overdraft / Loan Against Securities / Deposit” form.

Step 3: Fill out the application, specifying that you want to pledge your FD as collateral.

Step 4: Submit a copy of your FD receipt, and proof of identity (PAN, Aadhaar, etc.).

Step 5: Bank official verifies the FD and your KYC, and places a lien on your FD.

Step 6: Once approved, BOI sanctions the loan / OD limit, and you can draw funds as agreed.

Step 7: Maintain required documentation (FD record, sanction letter) for future repayment or lien release.

Who Should Consider a Bank of India Loan Against FD?

The Bank of India loan against FD may suit: 

• Bank’s FD Holders: Existing BOI FD Holders who need cash but don’t want to break their FD.
• Customers Needing Short-Term Liquidity: Useful for emergencies (medical, education) or sudden cash needs.
• Business Owners / Self‑Employed: To fund working capital without disturbing savings.
• Conservative Borrowers: Those who want access to “secured” credit (since FD is collateral) rather than high-interest personal loans.
• FD Investors with Long-Term Deposits: Those who want to preserve their FD and continue benefiting from FD interest rates while accessing its value.

Repayment Options for Bank of India Loan Against FD

Based on BOI’s terms for “Loan Against Securities” and standard practices:

• Repayment via FD: At FD maturity, the outstanding OD amount can be adjusted from the FD.
• Fresh Inward Funds: You may repay via fresh remittances or local rupee deposits, per BOI’s policy.
• Flexibility: Because this is like an overdraft, you may not be required to pay in fixed EMI; you only pay for the funds you use (depending on how BOI structures it).
• Bank’s Hold on FD: The bank retains a claim on your FD until the loan is repaid or the FD matures, ensuring its security.

Conclusion

A Bank of India Loan Against FD could potentially let you access liquidity against your fixed deposit without breaking it, by pledging the FD as collateral. Speak with your BOI branch or relationship manager for current, precise details, especially in light of FD interest rates.