Haryana Gramin Bank Loan Against FD

What is a Haryana Gramin Bank Loan Against FD?

A Haryana Gramin Bank Loan Against FD provides the deposit holders an opportunity to borrow the money in their fixed deposit without closing the deposit before maturity. The FD serves as collateral, and thus it will continue to generate returns as long as you borrow. The interest rate on the loans is typically 1-2% above interest rates charged on Haryana Gramin Bank FD interest rates, which keeps the interest rates of borrowing low as compared to many other unsecured loans. This facility is normally utilised to meet short-term financial requirements without disrupting long-term savings.

Key Features of Haryana Gramin Bank Loan Against FD

Haryana Gramin Bank loan against fixed deposit has a number of practical advantages:

• Competitive Interest Rate: The FD interest rate on a loan against FD is normally lower than unsecured loans. It is usually associated with the FD interest rate, with a small additional margin charged only on the amount borrowed.
• Interest Charged Only on Utilised Amount: When offered as an overdraft facility, interest is charged only on the amount you actually use, not on the entire eligible limit. At the same time, the full FD continues to earn interest.
• Simple Eligibility: This facility is mostly granted to resident persons, joint FD holders, Hindu Undivided Families (HUFs), and other eligible persons upon the bank and branch approval.
• No Prepayment Fees: You can pay the loan in instalments or as a single payment anytime without any charge; that is, it is a flexible payment at any time to meet short-term financial requirements.

How to Apply for a Haryana Gramin Bank Loan Against FD?

Haryana Gramin Bank provides both online and offline options to apply for a loan against a fixed deposit, subject to service availability.

Online Application Process

Haryana Gramin Bank also enables customers to take a loan against FD using a simple online procedure by following the steps below:

• Access Digital Banking: Log in to Haryana Gramin Bank’s internet or mobile banking platform.
• Select Fixed Deposit: Choose the FD you wish to use as security.
• Choose Loan Option: Select the loan or overdraft against FD facility.
• Review Eligibility: Check the eligible loan amount and interest rate.
• Submit Request: Confirm and submit your application online.
• Receive Funds: The approved amount is credited to your savings account.

Offline Application Process

At the branch, the process of a Haryana Gramin Bank loan against an FD offline application can be done by the following steps:

• Visit the Branch: Go to your nearest Haryana Gramin Bank branch.
• Request the Facility: Inform the bank staff about your loan against FD requirement.
• Submit Documents: Provide identity proof and FD account or receipt details.
• Select FD for Security: Choose the FD to be kept as collateral.
• Review Loan Terms: Verify interest rate, limit, and repayment conditions.
• Loan Disbursement: After approval, the loan amount is credited to your account.

Who Should Consider a Haryana Gramin Bank Loan Against FD?

This facility may include a large number of customers such as:

• Investors with Fixed Deposits Under Lock-In: A loan based on FD will enable you to access the funds when you need them without terminating the deposit with a lock-in period, like a tax-saving deposit.
• Short-Term Needs: Short-term cash needs can comfortably manage their medical payments, school fees, household, and seasonal expenses without using the costly sources of high-interest borrowing.
• Small Business Owners and Farmers: Business owners, self-employed professionals, and farmers can use the loan on FD to meet short-term working capital or operations needs.
• Borrowers who want to avoid the high cost of credit: This category of borrowers plans to borrow at a comparatively low cost secured by their FD compared to personal borrowing or the interest charged on their credit cards.

Repayment Options for Haryana Gramin Bank Loan on FD

Haryana Gramin Bank offers flexible terms of repayment of loans secured by fixed deposits, and is subject to policies in the respective branches:

• Flexibility in Repayment Plan: It normally does not have a fixed regular EMI, and therefore, you can pay according to your cash flow.
• Partial or Full Repayment: You have the option to repay the loan in instalments over a period or liquidate the loan in a single instalment.
• Linked Account Repayment: Most of the time, the repayment is made on the linked savings account or current account.
• Adjustment at FD Maturity: In case the fixed deposit is closing before the loan is fully repaid, then the balance might be automatically adjusted in the FD proceeds.

Key Takeaways

Haryana Gramin Bank loan against FD enables you to access 90 % of the accrued value of your fixed deposit without closing it. Loan interest is generally charged at a rate of 1% to 2% above the FD interest rates, and your deposit is still earning you interest. It provides an alternative practical method of meeting short-term financial needs with flexibility in repayment and the ease of documentation. Simultaneously, it assists you in saving in the long term.