Suryoday Small Finance Bank Loan Against FD

What is a Suryoday Small Finance Bank Loan Against FD?

Suryoday Small Finance Bank loan on a fixed deposit allows you to take 90% of the FD value as a loan by pledging your current FD without necessarily closing the deposit. It applies to active FDs that are three months old or more, and the interest will be earned on the FD throughout the loan period. Suryoday offers competitive FD rates, with returns of up to 4.00% - 8.00% for the general public. The loan interest will usually be charged only on the drawn amount and will be charged at slightly higher than the normal FD interest rates.

Key Features of Suryoday Small Finance Bank Loan Against FD

Suryoday Small Finance Bank loan against fixed deposit offers some convenient services to customers who want to withdraw funds fast without interfering with their investments. These are some of the main features:

• Interest Rate Structure: The interest charged on the loan is charged at approximately 2% per year in addition to Suryoday Small Finance Bank FD rates, which is a cost-effective borrowing option.
• No FD Closure Required: Your FD will stay active for the entire duration of your loan, and you will earn interest on the whole amount.
• Loan Tenure Matching: Typically, the loan period matches the remaining maturity period of the FD, therefore making repayments easy and predictable.
• Minimal Documentation: As your fixed deposit is acting as collateral for the loan against FD, the documentation will be very simple and minimal.
• No Credit History Check: This is a completely secured loan facility that requires no credit score checks.
• Repayment Details: Typically, flexible repayment is allowed, EMIs, or a lump sum at FD maturity.

How to Apply for a Suryoday Small Finance Bank Loan Against FD?

The Suryoday Small Finance Bank loan on FD is available both online and offline. The processes of application of each are as follows:

Online Application Method

The Suryoday Small Finance Bank Loan Against Fixed Deposit is a fast and paperless online process.

• Log In: Open the Suryoday Small Finance Bank website and log in to your account.
• Select FD: Choose the active FD that you would like to pledge.
• Enter Loan Details: Enter the amount of the loan within the 90% limit.
• Choose Repayment Period: Select a suitable loan repayment period.
• Complete Application: Fill the online application form using your personal and FD details.
• Verification: The bank will verify the information, and the FD that is pledged will be marked with the lien on it.
• Loan Disbursement: Your registered account will receive the loan amount that has been approved.

Offline Application Method

The offline process is also offered to customers who want face-to-face services.

• Visit the Branch: Visit the nearest branch of the Suryoday Small Finance Bank.
• Collect Form: Get the Loan Against FD application form.
• Fill in Details: Use your FD details and mention the amount that you want to take as a loan.
• Submit Documents: Submit the duly filled form with the FD receipt and KYC documents.
• Verification: The bank will check your information and put a lien on the FD.
• Loan Disbursement: On confirmation, the loan will be deposited into your account.

Who Should Consider Taking a Loan Against FD from Suryoday Small Finance Bank?

Suryoday Small Finance Bank Loan Against FD can be availed by customers to meet short-term financial requirements without closure of their long-term savings. This service is suited for:

• 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 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 Suryoday Small Finance Bank Loan Against FD

Suryoday Small Finance Bank Loan Against FD offers flexible repayment options, including:

• 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 may repay through periodic instalments, helping distribute repayment comfortably over time.
• Prepayment Facility: An early loan settlement is generally allowed, subject to Suryoday Small Finance's internal policies and terms.
• Lien Removal After Settlement: Once the entire loan is repaid, Suryoday Small Finance Bank lifts the lien on your FD, restoring full access to the deposit.

Key Takeaways

Suryoday Small Finance Bank Loan Against FD is a facility where customers can access the cash when they need quick capital without disturbing their fixed deposit. It provides liquidity and security to investors as it provides good interest rates, a loan-to-value ratio of up to 90%, and minimal documentation requirements. Repayment is easy and flexible, making it a convenient method of borrowing, which can be done online or offline.