IDBI Bank Loan Against FD

What is an IDBI Bank Loan Against FD?

IDBI Bank loan against fixed deposit is a financial facility that enables customers to avail funds against their IDBI IBU Term Deposit. With a minimum deposit amount of ₹10,000 and above, it provides liquidity without affecting the fixed income benefits of your term deposit. You can access the funds as a loan against FD for short-term personal or business requirements. This facility is available to both individuals and corporates holding eligible IBU Term Deposits.

Key Features of IDBI Bank Loan Against FD

Below are the key features that explain how the IDBI Bank loan against FD works:

• Competitive Interest Rates: The interest on a loan against FD is typically 2% above the applicable IDBI Bank FD rates, ensuring a low-cost borrowing option compared to unsecured loans.
• Flexible Tenure: You can choose the loan period as per your requirement. The maximum tenure allowed by IDBI Bank is limited to the original fixed deposit’s duration.
• Quick and Transparent Processing: IDBI Bank ensures a simple credit appraisal process with minimal turnaround time (TAT) and no hidden charges for the customer.
• Minimal Documentation: Availing a loan against FD from IDBI Bank requires simplified paperwork, making the process hassle-free.
• Multi-purpose Usage: The loan limit from IDBI Bank can be used for working capital, capital expenditure (CapEx), or any personal requirements.
• Interest on Utilised Amount Only: Interest is charged only on the amount you use and for the duration it is used, making repayment cost-efficient.

How to Apply for an IDBI Bank Loan Against FD?

Applying for a loan on FD with IDBI Bank is simple and can be done through multiple convenient channels.

1. Online Loan Application 

   To apply for a loan against FD online, follow these steps:

   • Get in Touch with the Bank: Call 079-66759928 to speak with an IDBI Bank representative. Or,
   • Send an Email: Email your FD and savings account details to ibugiftcity@idbi.co.in for quicker assistance. Or,
   • Request a Call Back: Use the "Receive a Call Back" feature on the IDBI Bank website. A bank official will contact you to discuss your loan. Then,
   • Provide Necessary Documents: Ensure you submit the required FD and account details, along with any identification documents if needed.
   • Review Loan Terms: Once contacted, review the loan terms and conditions provided by the bank representative.
   • Finalise the Loan: Confirm your loan application, and the overdraft will be activated upon approval.

2. Offline Loan Application

   To apply offline at an IDBI Bank branch, here’s what you need to do:

   • Visit a Branch: Go to the nearest IBU Gift City branch or any IDBI Bank branch.
   • Carry Necessary Documents: Bring your FD details along with valid ID documents for verification.
   • Locate a Branch: Use the "Find the Nearest Branch" tool on the IDBI Bank website to locate a branch near you.
   • Complete the Application Form: Fill out the ‘Loan Against FD’ request form at the branch.
   • Submit Documents for Verification: Submit the required documents along with your completed application form for verification.
   • Loan Activation: Once the loan application is verified and approved, the overdraft facility will be activated.

Who Should Consider an IDBI Bank Loan Against FD?

This facility is suitable for a wide range of individuals and businesses looking for quick funds while keeping their savings intact.

• Clients Seeking Easy Approval: Those looking for quick processing and minimal documentation will find this facility convenient, as it comes with simplified credit checks and faster disbursal.
• Corporations and Institutions Abroad: Businesses seeking quick access to funds for operational expenses without repatriating assets or closing deposits.
• Clients Avoiding Costly Loans: Those who want to avoid high-interest unsecured loans by leveraging their own secured deposit instead.
• Foreign Nationals with Indian Investments: Individuals holding term deposits in India and needing access to liquidity through an internationally regulated facility.

Repayment Options for IDBI Bank Loan Against FD

IDBI Bank offers simple and flexible repayment options to help you manage your loan conveniently without any financial stress.

• Flexible Repayment Timeline: You can repay the loan at any time during the loan tenure, either in EMIs or as a lump sum, as long as the repayment is completed before the maturity date of the fixed deposit.
• No Prepayment Charges: IDBI Bank allows early repayment of the loan without any penalty or additional charges.
• Multiple Payment Modes: Repayment can be done through bank transfer, branch visit, or other available modes as guided by IDBI Bank.

Key Takeaways

Loans against FD IDBI Bank are a convenient option for customers who need short-term funds. You can get up to 90% of your IBU Term Deposit amount as a loan, without affecting your savings. The minimum fixed deposit required is ₹10,000. This facility is especially useful for customers who have fixed deposits with the bank and are looking for low-interest loans. If you want to explore another option, you can also go for an IDBI Bank credit card against an FD.