IPPB Loan Against FD

What is an IPPB Loan Against FD?

India Post Payments Bank loan against FD enables the customer to borrow money using their fixed deposit as security. This alternative serves to fulfil urgent financial requirements and retain the FD and earn interest. IPPB loan interest rates are generally 1-2% above IPPB FD interest rates, which makes it a cost-efficient choice to obtain money. Customers are able to take the loan as collateral with the FD, thereby having flexibility and convenience in taking the loan without reducing their savings.

Key Features of IPPB Loan Against FD

The IPPB loan against FD has a number of benefits. The following are the major characteristics:

• Easy Process of Application: The loan against FD application process is easy, and there are both online and offline application processes. This ensures that customers can easily request a loan against FD and get the money within a very short time.
• Pay Interest on Only the Used Amount: You do not pay interest on any amount of loan you take out, but rather you pay it on the amount you have used. This assists in the lowering of borrowing costs.
• Broad Customer Eligibility: IPPB loan against FD can be made to individual customers who have a single or joint account, and businesses registered in IPPB.
• Repayment Anytime: The loan may be repaid at any time without attracting any extra charges or penalties.

How to Apply for an IPPB Loan Against FD?

Application for Loan on FD is easy with IPPB through both online and offline.

Online Loan Application

To apply via IPPB mobile application or NetBanking use the following easy steps:

• Log in to NetBanking/App: Log in to NetBanking/App with account details.
• Access the Fixed Deposit Section: In your account, go to the Fixed Deposit section.
• Select the FD to Pledge: Choose the FD on which you would like to pledge the loan.
• Enter Loan Amount: Select Loan against FD and fill in the loan amount.
• Review Loan Details: Review the loan details.
• Submit the Application: Affirm and submit your application.

Offline Loan Application

In order to apply offline, one has to visit the closest IPPB office and do the following:

• Visit the Nearest Branch: Go to the nearest IPPB branch.
• Request for Loan Against FD: Tell the representative that you would like to take a Loan Against FD.
• Provide Required Documents: Give your ID verification and FD receipt.
• Discuss Loan Details: Talk about the details of the loan, interest, and the loan amount.
• Complete the Paperwork: File the necessary documents and do the paperwork.
• Loan Processing: The bank will address your loan and give you the details.

Who Should Consider an IPPB Loan Against FD?

The IPPB loan against fixed deposit suits a broad investor base. These include:

• Investors with Tax-Saving FDs: Tax-saving FDs particularly have a lock-in period of 5 years. This loan will enable you to borrow money without the loss of your FD.
• People with Short-Term Cash Requirements: When you need to meet urgent medical bills, school fees, or you are in need of emergency cash, then you can use this loan facility to get the cash without closing your FD.
• Small Businesses and Self-Employed Professionals: This category of the loan can be used by those who own businesses that need to control working capital or meet short-term needs.
• Individuals in Need of Cheaper Loans: The loan against FD is an affordable option compared to personal loans or credit card debts.

Repayment Options for IPPB Loan Against FD

You can manage your finances with ease since IPPB has a flexible repayment option. The most crucial features of repayment are:

• Repay at Any Time: You are not obligated to a particular EMI, as you can repay the loan at any time that you feel like.
• Various Payments: One can make a payment by IPPB NetBanking, UPI, NEFT, or by visiting the branch.
• Partial or Full Repayment: You will have an opportunity to pay the loan off in full or partially, depending on your financial circumstances.
• Automatic Adjustment on FD maturity: When the FD matures, or it is closed, the outstanding loan amount will be adjusted based on the FD proceeds.
• Repayment through Other Accounts: In the case you have other accounts in IPPB, you can repay the loan using those accounts.

Key Takeaways

IPPB Loan against FD provides one of the easiest methods to get funds, and even though your FD keeps earning interest, you can borrow up to 90% of the fixed deposit. The interest rate is lower than the FD interest rates, and only the amount used is charged interest, usually 1 to 2% higher. The process of application is fast and easy, both online and offline, making it an adaptable solution for urgent needs.