Uttarakhand Gramin Bank Loan Against FD

What Is a Uttarakhand Gramin Bank Loan Against FD?

Uttarakhand Gramin Bank Loan against FD is a secured lending product available for those with fixed deposits in Uttarakhand Gramin Bank. Borrowers use their fixed deposits as collateral to secure short-term cash flow needs with lower interest rates than typical unsecured loans. Your FD remains an active investment during the term of your loan at Uttarakhand Gramin Bank and continues to earn interest based on Uttarakhand Gramin Bank FD interest rates while you repay your loan.

Key Features of Uttarakhand Gramin Bank Loan Against FD

Uttarakhand Gramin Bank's FD-based loan provides a number of benefits that make it a viable option for loan against FD.

• High Loan Eligibility: Customers can usually borrow up to 75% to 90% of the fixed deposit value, subject to bank norms.
• Lower Interest Cost: The interest rate charged on the loan is 1-2% over the applicable interest rate on FD, which is much lower than that of personal loans.
• FD Still Earns Interest: The interest on the fixed deposit is earned during the whole tenure, even after the loan has been availed.
• Repayment Flexibility: There is no fixed EMI. Borrowers may pay the loan in instalments or in full.
• Minimal Documentation: The FD being collateral means that the requirements of documentation are minimal.

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

Applicants can apply for loans against FDs at Uttarakhand Gramin Bank either through their existing online banking account or by visiting their nearest branch. 

Online Loan Application

Please see below for details on how to apply for a loan through the bank's digital banking services:

• Accessing Digital Banking: Enter the NetBanking or Mobile Banking with your registered credentials.
• Navigating to Fixed Deposit Services: Go to the Fixed Deposits or Deposit Services.
• Selecting the FD to Pledge: Choose the FD in which you would like to pledge.
• Choosing the Loan Option: Select the Loan against FD or overdraft facility.
• Reviewing Loan Details: Check the loan amount and the interest rate that is available.
• Submitting the Loan Request: Submit the request and wait for confirmation from the bank.

Offline Loan Application

Customers may also apply offline by visiting the nearest Uttarakhand Gramin Bank branch:

• Visit the Nearest Branch: Go to the closest branch of Uttarakhand Gramin Bank.
• Requesting a Loan Against Your FD: Take a loan against your fixed deposit.
• Providing Required Documents: Provide valid ID documents and an FD receipt.
• Certifying the Fixed Deposit: Certify the fixed deposit on the loan.
• Reviewing Loan Terms: Confirm the interest rate and the amount of the loan.
• Completing the Loan Application: Fill out the loan application and get loan information.

Who Should Consider a Uttarakhand Gramin Bank Loan Against FD?

Customers needing temporary funds may find that this facility meets their needs without requiring them to terminate their fixed deposits.

• Fixed Deposit Holders: Fixed Deposit Holders will find this product useful because it allows them to access liquidity without sacrificing any potential earnings from their fixed deposit accounts.
• Short-term cash requirements: It can be used in payment of medical bills, school fees, or emergency household bills.
• Farmers and Self-Employed individuals: Assistance with temporary finance needs of agriculture or business.
• Seeking Lower Costs of Interest by Borrowers: This works in instances where the borrower will not want to undertake high-interest personal loans or credit cards.

Repayment Options for Uttarakhand Gramin Bank Loan Against FD

Uttarakhand Gramin Bank offers flexibility in the repayment plan, which is easy and convenient in the management of loans.

• Anytime Repayment: Borrowers are free to repay the loan anytime during the tenure. Early or partial repayments can be made, and this tends to decrease interest payments without any penalty.
• Partial or Full Payment: Borrowers can make payments by installments or pay the loan in one lump sum. This gives borrowers flexibility and allows them to align their repayment schedule with their income.
• Payment of the Loan Amount: Clients may use any branch of Uttarakhand Gramin Bank to make their loan payments to repay their borrowed amount. Clients may make a payment at any of Uttarakhand Gramin Bank branches.
• Settlement at Maturity: When the loan is not repaid in the maturity period, the proceeds of the fixed deposit against the settled loan are deducted.

Key Takeaways

Uttarakhand Gramin Bank loan against fixed deposit allows the use of 75 to 90% of the deposit amount by the customers. The fixed deposit remains functional, and it still earns interest. The interest charged on loans is normally 1% to 2% higher than the FD, which maintains the cost of borrowing at low levels. The ability to repay in flexible terms helps to manage the cash requirement. This facility provides short-term financing without interfering with long-term savings.