Ujjivan Small Finance Bank Loan Against FD

What is a Ujjivan Small Finance Bank Loan Against FD?

Loan Against FD by Ujjivan Small Finance Bank suggests options that provide funds against the loan deposits while maintaining the deposit intact.The sanctioned loan amount starts from ₹25,000 or more, making it suitable for short-term financial needs. During the loan period, your fixed deposit continues to earn interest. The loan interest rate is generally charged at around 2% above the prevailing Ujjivan Small Finance Bank FD interest rates, and interest applies only to the amount utilised.

Key Features of Ujjivan Small Finance Bank Loan Against FD

Ujjivan Small Finance Bank loan against fixed deposit has a number of benefits that make it a convenient loan to borrow:

• No Processing Fees: Ujjivan Small Finance Bank will not impose processing fees on a loan against fixed deposit, which will help you avoid unnecessary costs during the borrowing process against your FD.
• Low Interest Rate: The interest is typically charged at an approximate 2% above the current interest rate and only charged on the amount that has been used by the customer.
• Pay Interest Only on Used Amount: You still receive interest on the full amount of the FD, but only pay interest on the loan amount used, and this will ensure that borrowing costs are kept low.
• Wide Eligibility: This is an offer that is available to persons living in the area who have one or more FDs, Hindu undivided families (HUFs), and any other entities that meet the bank standards.

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

Ujjivan Small Finance Bank provides an easy method to secure a loan against a fixed deposit, online and offline. Here’s how you can apply:

Online Loan Application

Ujjivan Small Finance Bank provides a digital banking service where eligible clients can borrow against their fixed deposits. The process usually consists of:

• Accessing Web Banking: With the user credentials registered, you are able to use Internet or Mobile Banking.
• Going to the Fixed Deposit Services section: Deposit or fixed deposit services and the Fixed Deposit or deposit services.
• Choosing the FD to Pledge: Pick the fixed deposit you want to pledge.
• Loan Selection: Choose the overdraft or loan against the FD.
• Loan Details Confirming: Verify the amount of eligibility, interest rate, and terms.
• Loan Application Sending: Confirm and submit the loan application.

Offline Loan Application

In case you want to apply physically, then you can go to your nearest branch of Ujjivan Small Finance Bank. Follow these steps:

• Visit the Nearest Branch: Go to the closest branch of Ujjivan Small Finance Bank.
• Requesting a Loan Against Your FD: Take a loan on your fixed deposit.
• Provide Identification and FD Receipt: Provide legitimate ID evidence and the FD receipt.
• Selecting the FD for Pledge: Choose the fixed type of deposit to pledge.
• Reviewing Loan Terms: Check loan amount, interest rate and terms.
• Finalising the Loan Application: Finish application and get information about loan.

Who Should Consider a Ujjivan Small Finance Bank Loan Against an FD?

The Ujjivan Small Finance Bank lending against FD is applicable to large groups of customers, which include:

• Investors who are having Long- Term FDs: A loan against FD Ujjivan Small Finance will enable the investor to access the money without interest benefits when the maturity of their FD is high.
• People with Short-term Cash Requirements: The facility takes care of the medical emergencies, school fees, travelling costs, or other urgent requirements which can be handled without having to close your FD.
• Small business owners and self-employed professionals: The loan may be utilised to address the short-term working capital or operational costs.
• People Avoiding High-Interest Loans: Compared to personal loans or credit cards, a loan against FD offers a lower interest rate since the FD acts as collateral.

Repayment Options for Ujjivan Small Finance Bank Loan Against FD

Ujjivan Small Finance Bank allows its customers to choose the loan repayment time:

• Pay Anywhere: The option to repay the loan has no specified limit. You, the customer, can either repay the loan in installments, pay it all at once, or select the time that is the most convenient for you.
• Different Ways of Payment: The customer can either pay through the digital banking platforms or pay the cash at the bank branch.
• Partial or Full Repayment: Borrowers can pay the loan in instalments or pay off the amount at once.
• Automatic Adjustment on FD Closure: In case the FD matures or is closed, the outstanding loan balance is automatically adjusted out of the FD proceeds.

Key Takeaways

Ujjivan Small Finance Bank loan on FD will allow borrowing a maximum of 80% of the deposit. The interest on your fixed deposit is earned throughout the loan term. The loan interest is imposed at 2% above the FD interest rate. You receive convenient repayment plans. The facility is accessible both online and offline. It provides an easy and affordable means of accessing short-term financial requirements without losing your savings.