Central Bank of India Loan Against FD

What is a Central Bank of India Loan Against FD?

Central Bank of India loan against FD is a quick and easy way to access funds without closing your fixed deposit. You can avail this facility on FDs with a minimum deposit amount of ₹10,000 and a maximum amount of ₹10 crore. The deposit is accepted under the Cent Garima Term Deposit Scheme for a fixed tenure of 777 days, during which your FD continues to earn interest. The Loan against Fixed Deposit ensures your savings remain intact while you meet urgent financial needs.

Key Features of the Central Bank of India Loan Against FD

Here are some of the most important features that make the Central Bank of India loan on FD facility useful:

• Low Interest Rate: The Central Bank of India charges only 1% above the Central Bank of India FD interest rates, making it an affordable borrowing option.
• Flexible Loan Tenure: Loan tenure can be aligned with your FD maturity date, giving you repayment flexibility.
• Pay Interest Only on Used Amount: The interest is charged only on the amount you draw, calculated on a daily product basis. No interest is charged on the unutilised sanctioned limit.
• Zero Processing Fees & No Prepayment Penalties: Enjoy cost savings with no additional charges for loan processing or early repayment.
• Easy Application: Apply seamlessly at any branch or through the Central Bank of India’s internet, or by visiting a branch for professional assistance.

How to Apply for a Central Bank of India Loan Against FD?

Applying for a Central Bank of India loan against Fixed Deposit is simple and hassle-free. You can do it online or offline.

1. Online Loan Application

   Follow these simple steps to complete your online loan application:

   • Log In: Access the Central Bank of India internet banking portal.
   • Go to Loan Section: Navigate to “Loans” and select “Loan Against FD.”
   • Choose FD: Pick the fixed deposit you wish to pledge.
   • Enter Details: Provide the required loan amount and tenure.
   • Submit Request: Complete and submit your application online.
   • Loan Disbursal: Once approved, the loan amount is credited to your linked account.

2. Offline Loan Application

   If you prefer a face-to-face process, here’s how you can secure a loan against your FD offline:

   • Visit the Branch: Go to your nearest Central Bank of India branch.
   • Request Loan Service: Inform the bank that you want a loan against your FD.
   • Complete Application: Fill out the loan application form provided.
   • Submit Documents: Provide your FD receipt and proof of valid identity.
   • Verification & Approval: The bank will verify your details and documents.
   • Loan Disbursal: Once approved, the loan amount will be credited to your account.

Who Should Consider a Central Bank of India Loan Against FD?

A loan against a fixed deposit is a smart solution for various financial needs. It suits individuals who want quick access to funds without disturbing their savings. Here's who can benefit most:

• 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 Central Bank of India Loan Against FD

Central Bank of India offers flexible repayment options for loans against fixed deposits, allowing borrowers to choose what best suits their financial needs:

• Fixed Tenure Alignment: The loan must be repaid on or before the maturity date of the fixed deposit. Loan tenure cannot exceed FD tenure.
• Interest‑Only Payments: Some repayment plans allow interest payments during the loan term, with the principal cleared at the end.
• Automatic Adjustment at Maturity: If the FD maturity doesn’t fully repay the loan, the bank will recover the outstanding dues from the FD proceeds.
• Equated Monthly Installments (EMIs): Borrowers may repay using fixed monthly installments covering principal plus interest, aligned with the FD maturity timeline.
• Lump‑Sum Payment: You can repay the full loan amount, including interest, in one payment before the FD matures.

Key Takeaways

A Central Bank of India loan against FD is a safe and affordable way to access funds without closing deposits. You can borrow up to 90% of your FD’s value, choose flexible repayment options, and your FD continues to earn interest. With lower rates than personal loans and minimal documentation, it's ideal for emergencies, short-term needs, or working capital. Available online and offline, with quick approval and no need for income proof.