Paytm Payments Bank Loan Against FD

What is Paytm Payments Bank Loan Against FD?

Paytm Payments Bank Loan Against FD is a facility that allows you to borrow funds by pledging your Fixed Deposit (FD) as collateral. Instead of closing your FD, you can apply for an overdraft (OD) facility through the Paytm app’s FD section. PPBL partners with banks like IndusInd to offer this service, allowing you to access funds at a lower interest rate while continuing to earn interest on your FD. The loan against FD limit can typically go 80% to 90% of the FD value, providing customers with a quick and secure way to meet their financial needs without liquidating their deposits.

Key Features of Paytm Payments Bank Loan Against FD

These are the common features usually found in FD-backed loans across banks that provide this facility.

• Low Interest rate: An interest is paid at a competitive rate that is marginally higher than the current interest rates on Paytm Payments Bank FD rates and is only charged as long as the funds are used.
• Pay Interest on Only Amount used: You will receive interest on the entire deposit, but only pay interest on the amount actually transacted. This assists you in saving in terms of borrowing.
• Broad Eligibility: The loan facility is also extended to individual and joint account holders and the Hindu Undivided Families.
• FD Growth: Fixed deposit is still intact and will keep earning interest as long as the loan is in progress.

How to Apply for Paytm Payments Bank Loan Against FD?

Paytm Payments Bank enables customers to apply for a Loan against an FD with digital platforms like the Paytm app. Here’s how to apply for a loan against FD using the Paytm app:

• Log In: Make sure that your Paytm app is updated and log in to your account.
• Navigate to the Loan Section: Visit the home page, click on Get Loan or locate Loans & credit cards.
• Enter Details: Enter your PAN, email, date of birth and other general details.
• Eligibility Check: Paytm NBFC reviews your eligibility and displays your loan offer.
• Complete KYC: Complete digital KYC with Aadhaar and PAN verification.
• Provide Bank Details: Give your bank account details to have a loan disbursed.
• Select Payment Method: Choose UPI AutoPay or eNACH for EMI payments.
• Review Agreement: Review and accept the online loan agreement.

Who Can Benefit from a Paytm Payments Bank Loan Against an FD?

For customers seeking funds without disrupting their long-term savings or ending fixed deposits before maturity, this service offers a practical solution. Suitable applicants' profiles include:

• Short-Term Cash Seekers: Depositors requiring fast access to money for healthcare, tuition, travel, or any urgent financial needs.
• FD Investors Protecting Returns: Customers who want to avoid premature FD closure, which could reduce their interest earnings.
• Low-Interest Borrowers: Those looking for a cheaper option than personal loans or credit cards, as FD-backed loans have lower interest rates.
• Small Deposit Holders: Customers may maintain fixed deposits of ₹5,000 or higher and might need small-scale financial aid.
• Stable Cash-Flow Planners: Investors wanting their FD secure until maturity while encountering short-term liquidity gaps.

Repayment Options for Paytm Payments Bank Loan Against FD

Paytm Payments Bank Loan Against Fixed Deposit provides multiple repayment methods to suit the different borrower preferences. Repayment options include:

• Maturity-Based Repayment: The total loan amount (principal plus interest) can be settled on the FD maturity using the deposit proceeds directly.
• Monthly EMI Option: Borrowers can also repay in monthly installments, which is useful in making repayment convenient over time.
• Prepayment Facility: Early settlement of the loans is generally accepted, as per the Paytm Payments Bank policies and terms.
• Lien Removal After Settlement: As soon as you have paid the entire loan, Paytm Payments Bank completely removes the lien on your FD, and you are able to access the deposit again.

Key Takeaways

Paytm Payments Bank Loan Against FD allows you to borrow money without closing your FD, using it as collateral. One can request a facility of overdraft directly in the Paytm app, and loan limits are usually 80% - 90% of the FD amount. The interest rate is low on the loan, and interest is only charged on the amount that you use, and your FD still earns interest at the applicable FD interest rates. This facility is offered to individual and joint account holders and even Hindu Undivided Families. Repayment can be done as maturity-based settlement, EMIs and prepayment. This offers flexibility to cater to various financial requirements.