When you are going through financial emergencies or crisis, taking a loan for the same helps you solve such issues at that moment. Apart from emergencies, loans also come in handy for other purposes, such as education, building a house, buying a vehicle and others. In most cases, people tend to liquidate their savings or fixed deposits without giving a thought. However, banks and financial institutions nowadays allow you to take out loans against FDs, making it easy for all to deal with financial crises. Let’s have a look at the features and benefits of an HDFC loan against FD, along with its application process, repayment tenures, and applicable interest rates.
What is an HDFC Loan Against FD?
HDFC is a well-known private sector bank in India, offering different types of financial products, including fixed deposits and loans. If you have a fixed deposit account with the bank, you can opt for a loan facility against such FDs, commonly known as overdrafts. HDFC Bank offers an overdraft facility in exchange for your domestic, NRE, NRO or FCNR fixed deposit schemes.
You are allowed to apply for a loan against fixed deposit HDFC Bank up to 90% of your invested amount. The bank charges a specific interest on the applicable FD interest rate for the repayment of such loans. You must know that this interest rate is generally lower than the interest rate of other loan schemes. Opting for this strategy will help you mitigate your financial requirements and save money until the maturity period.
Features and Benefits of HDFC Bank Loan Against FD
The salient features of opting for a loan against your fixed deposit account of HDFC Bank are provided below.
- The overdraft limit on your domestic fixed deposit account is 90%.
- You can avail 90% of the total FD amount as a loan for your NRE or NRO FD scheme.
- Single account holders can get quick loan application approvals on FDFs using net banking services.
- You can repay the loan by paying the interest just for the amount borrowed while the remainder of your FD continues to generate interest as usual.
- The minimum amount you are eligible to take as a fixed deposit from HDFC Bank is ₹25,000 for a minimum tenure of 6 months and 1 day.
- You have the flexibility to alter information on your loan application before the maturity of the deposit happens. It includes maturity, period of deposit, rollover mode and payment instructions.
- By using the net banking services of HDFC Bank, you can easily cancel your overdraft facility chosen for an FD if you are a single account holder.
- You may link your fixed deposit to a current or savings account.
Check the following benefits before applying for a loan on your HDFC Bank fixed deposit account.
- A major benefit of opting for a loan against FD rather than other loan schemes is that the interest rate applicable is attractive and lower than other loan plans of HDFC Bank.
- You do not have to prematurely withdraw your entire savings from FD to mitigate financial needs. Loan on FD helps you continue with your savings until the maturity period.
- As HDFC Bank allows a high percentage of your FD as a loan amount, it helps you enjoy higher financing and fulfil financial requirements easily.
- The use of the net banking portal makes the application and repayment process of HDFC loans against FD easy.
HDFC Loan Against FD Interest Rate
Check the following table for HDFC Bank loans against FD interest rates.
|Type of Fixed Deposits||Interest Rate Applicable|
|Loan against regular fixed deposit account||2% above the applicable interest rate|
|Loan against NRE fixed deposit account||2% above the applicable interest rate|
|Loan against NRO fixed deposit account||2% above the applicable interest rate|
Note: The interest rate applicable on a loan is for the period of money being used as a loan.
Eligibility Criteria for Availing Loan Against HDFC FD
The eligibility criteria you need to keep in mind before applying for a loan against an FD facility with HDFC Bank are given below.
- Resident individuals
- Public and private limited companies
- HUFs (Hindu Undivided Families)
How Can I Apply for a Loan Against HDFC FD?
There are a few simple steps that you need to follow to apply for a loan on your HDFC Bank fixed deposit account. Follow this step-by-step guide given below.
- Step 1: Visit the official website of HDFC Bank.
- Step 2: Navigate to the ‘Deposits’ tab under the ‘Save’ section.
- Step 3: Select the option ‘Fixed Deposit’.
- Step 4: From the menu provided on your screen, click on ‘Overdraft Against Fixed Deposits’.
- Step 5: Click on ‘Apply Online’.
- Step 6: Log in to your account using valid credentials to access the internet banking portal.
- Step 7: Fill out the application form with correct details and proper loan amount and tenure information.
After successful verification of your submitted details, you will receive confirmation regarding acceptance of the loan application via your registered phone number and email ID.
How to Repay the HDFC Loan Against FD?
Check the below pointers to understand how to repay your HDFC loan against your FD account.
- Withdrawn amounts from your fixed deposit can be repaid with interest while the remaining balance continues to accrue interest.
- Before your fixed deposit matures, you can change its duration, payment instructions, maturity options, and rollover settings.
- You can establish a connection between your fixed deposit and either a current or savings account.
- Using the NetBanking method, you have the ability to cancel the facility associated with your fixed deposit.
- You will only be charged interest on the borrowed sum, allowing you to retain the current interest rate on the untouched portion.
- Conveniently, you can instantly cancel your OD facility via net banking if you are the sole deposit holder, eliminating the need for stress or lengthy procedures.
How Much Loans Can I Avail on HDFC Fixed Deposit?
Let us read here to know about how much loan you can take against your fixed deposit account of HDFC Bank.
- You have to apply for a minimum amount of ₹25,000 against your FD for a minimum tenure of 6 months 1 day.
- For an FCNR FD account, you are eligible for 70% of the total amount as a loan.
- Get instant approval on 90% of your regular FD account amount as a loan.
- You will get 90% of the FD value as a loan on your BRE and NRO fixed deposit account.
Getting a loan against HDFC Bank fixed deposit is an easy task due to the availability of the net banking process. Now that you have a clear understanding of how HDFC loans against FDs work and what their benefits are, it is always intelligent to apply for loans during financial requirements rather than opting for premature withdrawal of your investment.
However, it is always important to go through the scheme, interest rates applicable and other terms before application to avoid unnecessary financial issues during the FD maturity period.