Being a customer of Axis Bank comes with a lot of benefits and exciting offers. In life, you may encounter financial crises or emergencies where you think breaking your savings can help you escape that situation. However, if you are an Axis Bank customer with a fixed deposit account, you can always go for an alternative option. This option is taking a loan against your fixed deposit account. Let’s explore what is Axis Bank loan against FD, interest rates, its benefits and features, and the repayment scheme of such loans.
What is a Loan Against FD Axis Bank?
Loan against FDs offered by Axis Bank is such a facility where investors are approved to loan their fixed deposit account up to a certain percentage of the amount deposited in FDs. Axis Bank offers loans only on the principal FD value, not the interest eligible. The bank keeps FD certificates with them until the amount of the loan is repaid. If you are unable to repay your loan on FD, the bank has the right to recover the sum from your deposit.
Axis Bank is a popular private sector bank in India, making it a safe avenue to save money using FD schemes and take loans against it during financial needs. Loan against fixed deposit Axis Bank helps you not to prematurely withdraw your savings and continue getting interest on FD till maturity. Moreover, the interest rate charged on your loan is also much lower than the interest applicable on other bank loan schemes.
Features and Benefits of Loan Against FD Axis Bank
Here is a list of some features and benefits associated with Axis Bank loan against FD facility.
- You are eligible to avail up to 85% of your fixed deposit value (only the principal amount) as a loan.
- The minimum amount you can apply for a loan on FD is ₹25,000.
- You can take a loan against your FD instead of prematurely withdrawing your FD, making it beneficial to meet monetary needs.
- You can gain access to liquid funds using this facility at a competitive and attractive rate of interest.
- The disbursement and approval process of a loan against FD Axis Bank is easy, hassle-free and quick compared to other loan schemes.
- Loan interest will only be charged on the actual amount used for the loan and for the period it has been used. No post-dated cheques or EMI is necessary here.
- You can get your overdraft account using only an ATM Card or Debit card, cheque book and Internet banking process.
- The minimum loan tenure that you can apply for is 3 months.
- No prepayment charges are applicable to this facility. Payment can be completed using an overdraft account from valid banking instruments and channels. It includes NEFT, IMPS, RTGS and cheques.
Axis Bank Loan Against FD Interest Rate
Before applying for a loan on your FD account, you must know the Axis Bank OD against the FD interest rate. Here is a table providing the information.
|Type of Fixed Deposits||Interest Rate Applicable|
|Loan against fixed deposit account||2% above the applicable interest rate on FD|
Eligibility Criteria for Availing Loan Against Axis Bank FD
You must apply a few eligibility criteria for Axis Bank OD against FD. Check the below pointers for the same.
- Has to be an Indian citizen.
- Once you present a legitimate Axis Bank Fixed Deposit, you will be granted access to the ODFD feature.
How Can I Apply for a Loan Against Axis Bank FD?
Applying for a loan on your Axis Bank fixed deposit account is simple and hassle-free. You can follow these easy steps to apply for a loan against FD at Axis Bank:
- Step 1: Open the official website of Axis Bank using your mobile phone or desktop.
- Step 2: Select the ‘Explore Products’ option and navigate to the ‘Loans’ section.
- Step 3: Under ‘Loans’, select the ‘Loan Against Fixed Deposit’ tab.
- Step 4: Click on the ‘Avail Now’ option shown to you in the upper section of the page.
- Step 5: You will be redirected to a login page, where you have to log into your Axis Bank account using valid credentials.
- Step 6: You will be asked for an OTP using your mobile number while logging in. Enter OTP to get to the next page.
- Step 7: Fill in all your details correctly in the loan application form of your fixed deposit account, which includes personal details, loan amount and tenure of the loan.
- Step 8: Click on ‘Submit’.
After verifying your information, you will receive confirmation via your registered phone number and email address.
How to Repay the Axis Bank Loan Against FD?
Here are the conditions associated with the repayment process of your loan against FD Axis Bank.
- You can repay your loan against your fixed deposit account after the completion of the loan tenure you selected.
- You can complete payment using valid banking channels and instruments, making it hassle-free.
- Banking instruments you can use for repayment include – NEFT, Cheques, IMPS and RTGS.
How Much Loan Can I Avail on Axis Bank Fixed Deposit?
When you apply for a loan against fixed deposit Axis Bank, you can avail of a loan of up to 85% of the total amount deposited in FD. Only Axis Bank FD account holders can apply for the loan and not FD depositors of other banks. Moreover, there is a minimum limit of ₹25,000 you can apply as a loan on your total fixed deposit value (including only the principal sum). Also, you have to take out the loan for a minimum tenure of 3 months against your FD.
Axis Bank makes it easy for its customers to go through their financial needs and requirements with all the different banking facilities. Loan against FD Axis Bank is crucial for investors facing trouble with money and need a quick fix to the same without hampering their savings. You can always opt for taking out a loan on FD and keep your investment running with an applicable interest rate till the maturity period.
Always remember to read all terms and conditions of the loan application and repayment process before applying for the same. It will help you avoid any financial discrepancies and issues with your overdraft as well as your FD account.