IndusInd Bank Loan Against FD

What is an IndusInd Bank Loan Against FD?

IndusInd Bank loan against fixed deposit is a secured overdraft facility that allows you to use your FD as security for an overdraft facility. With a loan against FD, you do not need to withdraw your fixed deposit, and it continues to earn interest while you access funds when needed. This helps you handle urgent expenses without affecting your savings. The process is quick, simple, and requires minimal paperwork.

Key Features of IndusInd Bank Loan Against FD

Here are the main features that make the IndusInd Bank loan against FD a convenient and flexible financial option:

• Low Interest Rate: The loan on FD is offered at just 2% to 3% higher than the prevailing IndusInd Bank FD rates, making it a cost-effective borrowing option compared to unsecured loans.
• Pay Interest Only on Used Amount: The IndusInd Bank Loan Against FD helps you save on borrowing costs, as you only pay higher interest (2-3%) on the funds you use, not the total available credit.
• Zero Processing Fee: It comes with no processing charges, making it more affordable than many other loan options that usually include additional fees.
• Flexible Repayment Tenure: You can choose a repayment period that matches or is shorter than your fixed deposit tenure, giving you more control over your loan against FD duration.
• Loan Tenure Linked to FD: With an IndusInd Bank loan against FD, the loan tenure is directly linked to your fixed deposit. The maximum loan duration cannot exceed the remaining tenure of your FD.
• FD Stays Intact: IndusInd Bank loan against fixed deposit allows you to get funds without closing your FD, so your investment continues to earn interest while you manage your financial needs.

How to Apply for an IndusInd Bank Loan Against FD?

You can apply for a loan against FD with IndusInd Bank through a quick online process or by visiting the nearest branch. Here’s how to get started:

1. Online Loan Application

   You can apply easily through IndusInd Bank’s NetBanking or mobile app.

   • Log in to NetBanking/Mobile App: Sign in using your Customer ID or registered mobile number.
   • Go to the Fixed Deposits Section: View your active fixed deposits.
   • Select Your FD: Choose the FD you want to use for the loan.
   • Choose ‘Loan Against FD’: Select the overdraft option (Loan Against FD).
   • Submit the Request: Review details and submit the request.
   • Instant Approval: The loan is usually approved instantly if the FD is in a single name.

2. Offline Loan Application 

   If you prefer in-person assistance for the loan against FD IndusInd Bank, visit the nearest IndusInd Bank branch.

   • Visit the Branch: Carry your FD receipt and ID/address proof.
   • Request the Form: Ask for the ‘Overdraft Against FD’ application form.
   • Fill Out the Form: Complete the application with your details.
   • Submit Documents: Provide your KYC documents and FD details.
   • Wait for Processing: The bank will process your application.
   • Get Overdraft Limit: The limit will be activated within 7 working days.

Who Should Consider an IndusInd Bank Loan Against FD?

Loan on FD facility from IndusInd Bank is a suitable option for the following groups who need short-term funds without closing their fixed deposits:

• Tax-Saving FD Investors: Those with tax-saving FDs with a 5-year lock-in can still access funds through an overdraft without disturbing the FD.
• Emergency Fund Seekers: Whether for medical bills, education fees, or travel, the facility ensures immediate access to liquidity without high-interest debt.
• Small Business Owners: Entrepreneurs can use this option to efficiently manage short-term working capital needs or operational expenses.
• People Avoiding Unsecured Loans: It’s a safer and cheaper alternative to personal loans or credit cards, especially when holding an FD with IndusInd Bank.

Repayment Options for IndusInd Bank Loan Against FD

Repaying the loan against FD with IndusInd Bank is simple and flexible. Here are the available options:

• Repay Anytime: You can repay the IndusInd Bank Loan Against FD amount at your convenience, without a fixed EMI schedule. There's no requirement to pay the entire amount in a single payment.
• Multiple Repayment Modes: There are multiple repayment modes for the loan against FD. These include NetBanking, UPI, NEFT, or visiting your nearest IndusInd Bank branch.
• Repayment from Other Accounts: You can repay the loan from any other account you hold with IndusInd Bank, giving you more flexibility in managing your repayments.
• Auto Adjustment on FD Closure: If the FD matures and the loan is still active, the outstanding amount is automatically deducted from the FD amount.
• No Prepayment Charges: You can close the loan early without paying extra charges or penalties.

Key Takeaways

IndusInd Bank Loan against FD lets you borrow money using your fixed deposit without closing it. You can get up to 90% of your FD amount while it continues to earn interest. This is a simple and cost-effective way to manage urgent financial needs without touching your long-term savings. The process is easy and can be done online or by visiting a branch. If you want to explore another option, check out the IndusInd Bank credit card against FD with quick approval and minimal documents.