Karur Vysya Bank Loan Against FD

What is a Karur Vysya Bank Loan Against FD?

Karur Vysya Bank loan against FD offers a convenient facility through which you can borrow money by pledging your fixed deposit. It is provided at a minimal additional interest (usually 1% to 2%) on top of the Karur Vysya FD interest rates while your deposit continues to earn returns. Available to individual and joint account holders, it features quick processing and minimal paperwork. Thus, a loan against FD is a useful option for urgent financial needs without disturbing your long-term investments.

Key Features of Karur Vysya Bank Loan Against FD

The main features of the Karur Vysya Bank loan against FD include:

• Interest on Utilised Amount Only: When availed as an overdraft facility, interest is applied solely to the portion of the sanctioned limit that is actually drawn and only for the period it remains outstanding.
• Comprehensive Deposit Eligibility: The facility is available against various categories of fixed deposits maintained with the bank, including standard term deposits, tax-saving deposits, and other special deposit schemes.
• Minimal Documentation Requirement: The process requires only the submission of the original fixed deposit receipt and basic identification documents, thereby ensuring efficiency and simplicity.
• Prompt Disbursal of Funds: Upon verification completion, the sanctioned amount is credited to the borrower’s account without delay, ensuring the timely availability of funds.

How to Apply for a Karur Vysya Bank Loan Against FD?

Applying for a loan against an FD at Karur Vysya Bank is straightforward. Here's how you can apply online and offline:

1. Online Loan Application

   If you're an existing KVB customer using net or mobile banking, you can apply for a loan on FD:

   • Log in to Net Banking or Mobile App: Access your Karur Vysya Bank net banking portal or open the KVB DLite mobile app.
   • Go to Fixed Deposit Section: From the main menu, navigate to the “Fixed Deposit” section.
   • Select FD for Pledging: Choose the Fixed Deposit you want to use as collateral for the loan.
   • Apply for Loan Against FD: Click “Apply Loan Against FD” or the equivalent option provided.
   • Enter Loan Details: Specify the loan amount and tenure, then confirm your request.
   • Review, Submit & Receive Funds: Check all details carefully, submit the application, and upon approval, the amount will be credited to your savings or overdraft account based on the loan type.

2. Offline Loan Application

   The offline process to apply for a loan against FD at Karur Vysya Bank can be achieved as follows:

   • Visit the Branch: Go to your nearest Karur Vysya Bank branch to initiate the loan process.
   • Carry Required Documents: Bring your fixed deposit receipt, a valid identity, and proof of address.
   • Fill Out the Application Form: Complete the loan application form with accurate details.
   • Select Loan Type: Choose between a term loan or an overdraft facility based on your needs.
   • Sign and Submit: Sign the necessary documents and submit them to the bank for processing.
   • Loan Approval & Disbursement: Once approved, the loan amount will be credited to your account, and your FD will be marked as a lien until repayment.

Who Should Consider a Karur Vysya Bank Loan Against an FD?

Karur Vysya Bank loan against fixed deposit is a practical choice for many types of customers:

• Salaried Individuals: Salaried individuals can meet urgent expenses like medical, education, or wedding costs by taking a loan against their FD, ensuring funds availability while continuing to earn Karur Vysya FD interest.
• Business Owners: Businessmen can use this as a short-term working capital solution without affecting cash flow or applying for a high-interest unsecured loan.
• Retirees and Pensioners: Retired individuals with large FDs can use this loan for personal needs like travel or health expenses without disturbing their savings.
• Students and Parents: Parents looking to fund education fees without applying for a student loan can use this facility if they have an FD.

Repayment Options for Karur Vysya Bank Loan Against FD

Karur Vysya Bank provides flexible repayment modes for loans against fixed deposits, as follows:

• Term Loan Repayment: Get the entire loan amount disbursed immediately and repay through fixed EMIs over the loan tenure. Interest is charged on the full amount.
• Overdraft Facility Repayment: A credit limit is set against your FD; you can withdraw funds as required. Interest is charged only on the amount utilised. Repay the amount you use.
• Tenure Alignment: The loan repayment period will not exceed the remaining maturity of the fixed deposit.
• FD Release Post-Repayment: Once the loan is fully repaid, the lien on your fixed deposit is removed, and it continues to earn interest as usual.

Key Takeaways

Karur Vysya Bank loan against fixed deposit is a smart way to access funds without breaking your FD. It offers a low-interest, cost-effective alternative to unsecured loans, making it suitable for borrowers without high-interest burdens. With quick processing, you can get up to 90% of your FD’s value at competitive rates, especially if you’re an existing customer. Whether salaried, self-employed, retired, or a business owner, this facility provides convenient liquidity while your deposit earns interest.