City Union Bank Loan Against FD

City Union Bank loan against FD lets you borrow up to 80% of your FD amount as an overdraft (OD). This facility enables individuals and businesses to address urgent financial requirements without prematurely withdrawing their deposits.

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Maximum returns Offered by Guaranteed

6.5%**

Fixed Deposits

(by SBI bank)

(5-10 Years)

6.9%***

Public Provident Fund

(other popular options)

(15 Years)

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We are rated++
rating
10.5 Crore
Registered Consumer
51
Insurance Partners
5.3 Crore
Policies Sold

What is a City Union Bank Loan Against FD?

A City Union Bank loan against FD provides access to your funds without prematurely closing your FD. This facility allows you to earn FD interest on your remaining deposits while obtaining a loan. The minimum deposit required is ₹100 for individuals, ₹1,000 for MSMEs, and ₹10,000 for corporates. The loan against FD can be availed for a minimum period of 7 days and up to 10 years.

Information About
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
6.9%* (TAX-FREE)
Returns After Tax
6.9%*
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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*For annual premium upto ₹5 Lacs

Key Features of City Union Bank Loan Against Fixed Deposit

City Union Bank Loan Against FD has several features that make it a practical choice. Some of these include: 

  • Interest on Utilised Amount Only: When availed as an overdraft facility, interest is charged solely on the portion of the sanctioned amount that is withdrawn and only for the duration it is in use.
  • No Repayment Penalties: The loan can be repaid anytime without incurring additional charges, offering repayment flexibility. 
  • Simple Documentation: The loan application process is straightforward with minimal documentation requirements, ensuring a hassle-free experience for customers. 
  • Flexible Repayment Options: Customers can choose repayment terms that suit their financial situation, providing ease in managing loan repayments. 
  • Loan Against FD for Various Customer Categories: The loan facility is available to various customer categories, including individuals, joint account holders, Hindu Undivided Families (HUFs), and private and public limited companies.

How to Apply for a Loan Against Fixed Deposit with City Union Bank

City Union Bank offers a straightforward process to apply for a Loan against a Fixed Deposit (FD). You can choose to apply online through NetBanking or visit your nearest branch. Below are the steps for both methods:

  1. Online Loan Application 

    Applying for a City Union Bank loan against FD through NetBanking is quick and convenient. Follow these steps:

    • Log in to NetBanking: Sign in using your Customer ID and password.
    • Navigate to Fixed Deposit Section: Go to the 'Deposits' section and select 'Fixed Deposit'.
    • Select the FD: Choose the Fixed Deposit you wish to use for the loan.
    • Initiate Loan Request: Click on the option to avail a loan against the selected FD.
    • Choose Loan Type: Select the type of loan facility you require (e.g., Overdraft or Loan).
    • Confirm and Submit: Review the loan details, including interest rates and tenure, and submit your application.
  2. Offline Loan Application

    You can visit your nearest City Union Bank branch if you prefer applying offline. Here's how:

    • Visit the Branch: Go to your nearest City Union Bank branch.
    • Request the Loan: Inform the bank representative that you wish to apply for a Loan against your Fixed Deposit.
    • Submit Documents: Provide documents such as your ID proof and Fixed Deposit receipt.
    • Select the FD for Loan: Choose the Fixed Deposit you wish to pledge for the loan.
    • Review Loan Terms: Discuss and review the loan terms, including interest rates and repayment options.
    • Complete Formalities: Fill out the required application forms and complete any other formalities as the bank representative guides.

Who Should Consider a City Union Bank Loan Against an FD?

A City Union Bank Loan Against FD is ideal for individuals seeking quick liquidity while retaining the benefits of their fixed deposits. This facility is suitable for:

  • Fixed Deposit Holders: Customers with existing fixed deposits with the bank can leverage them to secure a loan on FD without prematurely withdrawing or breaking their deposits.
  • Individuals with Immediate Financial Needs: Those requiring urgent funds for personal expenses, medical emergencies, or other unforeseen situations can access loans promptly, utilising their FD as collateral.
  • Risk-Averse Borrowers: Individuals preferring to avoid high-interest loans or credit card debts can opt for this secured loan, which typically offers lower interest rates due to the collateralised nature of the loan.
  • Senior Citizens: Senior citizens with fixed deposits and need additional funds for living expenses or other needs can benefit from this loan, ensuring they do not disrupt their existing FD earnings.

Repayment Options for City Union Bank Loan Against Fixed Deposit

City Union Bank offers the following general repayment options for a loan against FD:

  • Repay Anytime: Borrowers can repay the loan at their convenience, without being bound to a fixed EMI schedule. This allows for partial or full repayment as per individual financial circumstances.
  • Multiple Payment Modes: Repayments can be made through various channels, including NetBanking, NEFT, UPI, or by visiting a branch, providing multiple avenues for settling dues.
  • Partial or Full Repayment: Depending on personal financial planning, borrowers can repay the loan in parts or clear the outstanding amount in one go.
  • Automatic Adjustment on FD Closure: Upon maturity or premature closure of the Fixed Deposit, the outstanding loan amount is automatically adjusted against the FD proceeds, ensuring seamless settlement.
  • Repayment from Other Accounts: Borrowers can repay any other account held within City Union Bank, offering greater flexibility in managing repayments.

Key Takeaways

City Union Bank Loan against FD allows you to borrow up to 80% of your FD value. Thus, it lets you meet urgent financial needs without prematurely withdrawing your deposit. The loan is linked to the bank's External Benchmark Lending Rate (EBLR), with slightly higher City Union Bank FD interest rates. However, this facility ensures that your FD continues to earn interest, providing a cost-effective solution for accessing funds, compared to unsecured loan options.

FAQs

  • Can I borrow money against my City Union Bank Fixed Deposit?

    You can get a loan or overdraft from City Union Bank using your term savings. This lets you get to your money without taking money out of your FD too soon. The loan can only be given after the appropriate security documents are signed.
  • How much of a loan can I get with my Fixed Deposit?

    With a 20% margin, you can borrow money or get an overdraft against your term account. In other words, you can borrow up to 80% of the amount of the FD.
  • How do I repay a loan taken against my Fixed Deposit? 

    Repayment can be made through multiple channels, including branch visits or NetBanking. The outstanding amount will be deducted from the Fixed Deposit proceeds if the loan remains unpaid until maturity.
  • What other loan options does City Union Bank offer besides loans against Fixed Deposits?

    City Union Bank offers a range of loan products, including Personal Loans (for individuals and NRIs), CUB Consumer Loans, CUB Two Wheeler Loans under the “CUB Easy Ride” scheme, and CUB Car Loans through the “CUB Yoha Vahana” scheme.

˜Top 5 plans based on annualized premium, for bookings made through https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)
** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens).
*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
## The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 6.9% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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