PNB Housing Finance Loan Against FD

What is PNB Housing Finance Loan Against FD?

PNB Housing Finance loan against FD is a credit facility where your fixed deposit serves as security for the loan. It will allow you to borrow a percentage of your FD, which is normally 75% to 90% and the interest rate will be 2% above the PNB Housing Finance FD interest rates. This facility assists in financing your short term expenses without closing your FD, and your deposit continues to earn interest. You can avail this facility in the PNB Housing Finance branches. Make sure that your FD meets the necessary requirements in order to access the funds and still earn FD interest.

Key Features of PNB Housing Finance Loan Against FD

The key features of the PNB Housing Finance loan against FD are the following:

• Hassle-Free Application Process: You may have to visit the bank branch to complete the loan against FD. However, you may also apply online as per your convenience.
• Continued Interest Earnings on FD: You continue to earn interest on your FD while using the funds against it; therefore, you can take advantage of your savings without closing the FD.
• Minimal Documentation: Since the fixed deposit is already held with PNB Housing Finance, the process is quick, with faster verification, approval, and disbursal.
• Flexible Repayment Tenure: PNB Housing Finance allows borrowers to repay their loan in a lump sum or in installments, depending on the terms of the bank.

How to Apply for PNB Housing Finance Loan Against FD

You can apply for a PNB Housing Finance loan against fixed deposit either by visiting the nearest branch or online. Here are the steps one follows:

1. Online Application Process

   Customers who use PNB Housing Finance's internet banking or the mobile app can often start the loan request online. The steps are:

   • Log In: Log in to PNB Housing Finance Internet Banking or the mobile app
   • Check FDs: Open the Deposits section and check your active FDs
   • Select FD: Choose the FD to use as collateral.
   • Confirm Eligibility: Confirm FD eligibility and the amount of the loan offered.
   • Complete Application: Complete and sign the necessary application forms.
   • Submit Request: Submit your application and wait for approval from the bank

2. Offline Application Process

   To customers who want to visit the branch to apply for a Loan against FD, it is very easy. These are steps that one follows:

   • Visit the Branch: Visit the closest branch of PNB Housing Finance.
   • Carry Documents: Carry ID proof and your FD details/receipt
   • Request Loan: Request the staff that you require a Loan against FD.
   • Confirm FD: Confirm which FD to be pledged as security.
   • Complete Forms: Complete and sign the necessary forms.
   • Loan Approval: The bank grants the request and determines the limit of the loan/overdraft.

Who Should Consider a PNB Housing Finance Loan Against FD?

This loan facility is particularly beneficial for the following groups:

• Investors with Long-Term Savings: Long-term savers who prefer not to withdraw their FD can also use the facility to obtain liquidity.
• Depositors with Short-Term Cash Requirements: Short-term depositors who need financing for medical bills, schooling, travelling, or home renovation, etc.
• Small Business Owners and Self-Employed Professionals: Business owners who require working capital or funds to finance the operation can obtain the loan without interrupting the cash flow of their business or having to apply for a very expensive credit

Repayment Options for PNB Housing Finance Loan Against FD

The loan against FD offers several repayment options to suit different borrower needs:

• Tenure Aligned with FD Maturity: The loan period is normally aligned with the maturity of the FD, which prevents borrowers not to overstretch repayments.
• Interest-Only Repayment: Borrowers can repay interest only over the period of the loan, and the amount of the loan will be repaid at or before the maturity of FD.
• Automatic Adjustment: In case the loan is not paid till maturity, the unpaid balance could be taken out of the FD proceeds.
• EMI-Based Repayment: There are types of borrowers who may choose to pay the principal and interest in installments.
• Lump-Sum Repayment: This allows the borrower greater freedom, as they can pay the loan at their own will until the expiry of the term without any penalties.

Key Takeaways

PNB Housing Finance Loan Against FD is a loan that is provided to people who need money urgently but do not wish to close their fixed deposit. You can borrow 75% to 90% of your FD, and the interest charged on borrowed money is usually 2% more than the prevailing FD interest rate. Your FD will still generate interest during the entire tenure, and your goal of saving will not be compromised. Before applying to PNB Housing Finance, one must confirm the existing terms and charges and eligibility conditions directly with the bank as the policies are subject to change.