Tamil Nadu Grama Bank Loan Against FD

What is a Tamil Nadu Grama Bank Loan Against FD?

The loan against fixed deposit from Tamil Nadu Grama Bank will allow you to borrow money without closing your FD. Your FD can be used as security to access liquidity, as your deposit earns interest, which is usually in a range of 4.25% to 6.50% per annum. In order to get a loan, the FD should have been active for at least three months so that interest can continue accumulating on the loan. This alternative offers a safe and flexible borrowing option to meet your short-term financial requirements.

Key Features of Tamil Nadu Grama Bank Loan Against FD

The Tamil Nadu Grama Bank loan against FD is a practical and secure borrowing option due to its beneficial features. Some of these include:

• Reduced Interest Rate: Your FD will get you a loan with the Tamil Nadu Grama Bank at a lower interest rate than unsecured loans. Your FD acts as collateral, thus Tamil Nadu Grama Bank FD rates tend to be low.
• Pay Interest on the Amount You Use: When you borrow on an FD with the Tamil Nadu Grama Bank, you will only pay interest on the amount that you borrow as a loan, but not on the entire FD amount.
• FD Keeps on Earning Interest: As you borrow the loan, your fixed deposit will still be active, and it will still keep earning interest.
• Flexible Loan Tenure: The FD tenure is linked to the loan tenure, which allows easy loan repayment and easy finance planning.

How to Apply for a Loan Against FD at Tamil Nadu Grama Bank?

You can apply for a loan against FD through either digital or offline methods. Here’s how to apply:

Online Loan Application

The digital platforms of Tamil Nadu Grama Bank also make it easy to apply for a loan against an FD. Just follow these steps:

• Log In: Visit Tamil Nadu Grama Bank Netbanking or Mobile App.
• Go to FD Section: Go to the Fixed Deposit section.
• Select FD: Identify the FD to be pledged as security.
• Choose Loan Option: Select a loan or overdraft option.
• Fill in Details: Fill in the required details.
• Approve Request: Manage your request and wait for approval.

Offline Loan Application

In case you need offline option, you can simply visit your local branch of the Tamil Nadu Grama Bank. Follow these steps to apply for a loan against an FD:

• Visit the Branch: Go to the closest branch of Tamil Nadu Grama Bank in order to get a loan.
• Request Loan: Inform the representative thay you want a loan on your fixed deposit.
• Provide Documents: Provide your ID evidence, FD receipt, and savings account information.
• Select FD: Select the FD to pledge collateral.
• Review Terms: Thoroughly read the terms of the loan, such as the FD interest rates and tenure.
• Complete Paperwork: Sign and fill out the paperwork, and the bank will sanction your loan.

Repayment Options for Tamil Nadu Grama Bank Loan Against FD

The Tamil Nadu Grama Bank loan against FD provides flexible repayment options, and therefore, it is easy to manage your finances. Here are the key options:

• Repay When It Suits You: You are free to repay the loan against FD at any given time without any obligations to make payments on EMI.
• Flexible Payment: It is possible to make repayments online through bank accounts, transferring funds, or going to the bank.
• Auto-Deduction on FD Maturity: When your loan is still outstanding, and your fixed deposit matures, then Tamil Nadu Grama Bank automatically deducts the loan balance from the FD.
• Several Repayment Channels: You are able to pay your dues using multiple digital or offline methods, and these are online transfer, mobile banking, UPI payment, or by directly submitting payment in one of the branches of Tamil Nadu Grama Bank.

Who Should Consider a Tamil Nadu Grama Bank Loan Against FD?

The Tamil Nadu Grama Bank loan against FD suits a wide range of customers. These include:

• Long-Term FD Investors: You can also access liquidity without having to close your FD, in case of investors who have Long-Term FDs.
• People with Short-term cash requirements: Tamil Nadu Grama Bank loan against FD can be an option to use when paying medical bills, education bills, travelling needs, or other emergency financial bills.
• People Avoiding High-Interest Loans: A Tamil Nadu Grama Bank loan against an FD is a more appropriate solution for people who do not want to take a personal loan or use credit cards. It offers an affordable way of borrowing money since it is backed by an FD.

Key Takeaways

Tamil Nadu Grama Bank Loan against FD is a convenient and secure facility that provides the required liquidity without closing your fixed deposit. You may borrow up to 90% of your FD value, with the interest rates slightly higher than the applicable FD interest rates. Your FD keeps earning interest during the tenure of the loan, which means you do not miss out on interest payments when you take a loan against your FD. With the option of online and offline application, flexible repayment plans, and automatic deduction at the FD maturity, this loan is suitable for borrowers who need a short-term loan that will not interfere with their savings.