Union Bank of India Loan Against FD

What is a Union Bank of India Loan Against FD?

Union Bank loan against fixed deposit is a secured borrowing option where your fixed deposit is kept as collateral. The interest rate is generally 1–2% higher than the applicable FD interest rates. Since the loan is backed by security, it comes with lower interest rates and quicker processing compared to unsecured loans. The loan against FD tenure is flexible and linked to your FD maturity, while your deposit continues to earn interest throughout the period.

Key Features of Union Bank of India Loan Against FD

The Union Bank of India loan against FD comes with features that make borrowing quick, flexible, and stress-free:

• Pay Interest Only on Utilised Amount: Interest is charged only on the amount withdrawn. You don’t need to pay the entire sanctioned limit.
• Quick Approvals with Minimal Documentation: Since the FD is collateral, processing is faster. Paperwork is limited, making fund access smooth and hassle-free.
• Flexible Loan Tenure Options: The loan can be short-term or matched with your FD maturity. Your deposit continues earning interest during the loan period.
• Repayment Without Extra Charges: You can close the loan anytime without penalties. This flexibility helps in managing finances with ease.

How to Apply for a Union Bank of India Loan Against FD?

Applying for a Loan against FD Union Bank of India is easy, through online or offline channels:

1. Online Loan Application

   You can conveniently apply from home using Union Bank’s NetBanking or Mobile Banking for a Loan Against FD. Follow these steps:

   • Log In: Enter your credentials on Union Bank NetBanking or Mobile Banking (through Vyom app).
   • Navigate to Loan Services: Go to the Loan Services section and select Loan Against FD.
   • Choose FD Account: Pick the fixed deposit you wish to use as collateral.
   • Enter Loan Details: Specify the loan amount (up to 90% of the FD value) and select the tenure.
   • Upload Documents (if required): Provide identity proof, address proof, or any other documents requested.
   • Review & Apply: Check loan terms, interest rate, and repayment options. Submit the application to receive an instant confirmation or reference number.

2. Offline Loan Application

   You can apply for a Union Bank Loan Against FD in person by following these steps:

   • Visit the Branch: Go to your nearest Union Bank branch with your FD certificate and a valid identity document (Aadhaar, PAN, passport, etc.).
   • Request Application Form: Ask the bank staff for the Loan Against FD application form.
   • Fill in Loan Details: Provide your FD account information, desired loan amount, and tenure.
   • Submit KYC Documents: If you are a new customer or your KYC is due for renewal, provide the necessary documents.
   • Hand Over Form & FD Certificate: Submit the completed application form along with your FD certificate to the bank official.
   • Loan Approval & Disbursal: Once eligibility is verified, the bank sanctions your loan and credits the approved amount directly into your linked savings or current account.

Who Should Consider a Union Bank of India Loan Against FD?

This facility is suitable for a wide range of customers. These include:

• People Who Require Fast Cash: Get money without violating your FD.
• Senior Citizens: Get a high FD interest rate and a low margin on the loans.
• First-Time Borrowers: If you have a low credit history, you could avail of the loan using your FD.
• Business Owners: Finance short-term operational or working capital needs.

Repayment Options for Union Bank of India Loan Against FD

Union Bank offers flexible repayment choices to make loan management convenient for customers:

• Repay Anytime: Repay the loan anytime, even without prepayment charges.
• No Fixed EMI: There are no fixed EMIs, and the interest will be charged only on the amount utilised repayment could be made as per convenience.
• Repayment through Linked Account: Interest and principal are generally auto-debited from your linked current or savings account.
• Loan Closure on FD Maturity: In case the loan is not repaid by the time the FD matures, the bank has the choice to recover the money due to it by encashing the FD.
• Repayment through Other Accounts and Same Bank: It is possible that some customers can make the loan repayment by using other accounts of the same bank.

Key Takeaways

Union Bank of India loan against FD provides quick funds without withdrawing your deposit, letting you borrow up to 90% of your FD value. The FD continues to earn Union Bank of India FD rates, while the loan is charged at a margin of 1–2% above the FD rate. With no fixed EMIs, flexible repayment options, this facility offers a convenient and cost-effective borrowing solution compared to personal or other loans.