I need a loan slightly higher than my FD account. Is there a way the bank can consider my request?
If you are looking for a higher loan amount than your bank fixed deposit, it is a good idea to bring a loan guarantor on board. If the loan guarantor has good financial credentials and your credit score is just on the borderline, the banks are more likely to consider your loan request
You can get a loan against Fixed Deposit. A loan against a Fixed Deposit is precisely what the name implies; it is a loan obtained against the amount invested in a Fixed Deposit. Loans against Fixed Deposits can be a smarter option while availing loans, as these are easier to obtain and the interest rate for these loans is much lower than traditional loans.
Loans are traditionally obtained to meet emergency needs, which involve liquid cash. Breaking a Fixed Deposit might come to mind to meet this requirement but obtaining a loan against the Fixed Deposit makes more sense. Money invested will continue to fetch interest once the loan has been cleared and the interest paid on the loan could be less than the overall interest earned at times.
Fixed Deposits are a popular investment choice and a majority of individuals keep their savings in such deposits. Most Fixed Deposit loans are given in the form of an overdraft against the deposited amount. This loan ensures that any emergency can be dealt with and the amount in the deposit remains as it is.
The interest rate is generally 1-2% more than the interest rate an investor gets on his/her deposits. Interest is charged only on the amount utilized as loan and not the entire Fixed Deposit amount.
Looking for a Personal Loan? Click here.