A loan against a fixed deposit is a popular financing option for individuals who have some savings stashed away in a fixed deposit account. This type of loan allows borrowers to get access to a portion of their savings without having to break the fixed deposit. However, to avail this loan, one must fulfil certain eligibility criteria. In this article, we will discuss how to check the eligibility criteria for a loan against a fixed deposit.
To start with, let us understand what a loan against deposit is. A loan against deposit is a type of secured loan that is offered by banks and financial institutions against an individual's fixed deposit. The loan amount provided is usually a percentage of the total amount of the fixed deposit.
Coming back to the eligibility criteria for a loan against deposit, the first and foremost requirement is to have a fixed deposit account with the bank or financial institution offering this loan. The minimum amount of deposit required may vary from one institution to another. Usually, banks or financial institutions require a minimum deposit of Rs. 10,000 to avail of this service.
The next eligibility criterion for a loan against deposit is the age of the borrower. Typically, the age requirement for this type of loan is between 18 to 65 years. The borrower should also be an Indian citizen or a resident of India.
Another important eligibility criterion for a loan against deposit is the creditworthiness of the borrower. The borrower's credit score is checked to assess their ability to repay the loan. A good credit score generally means that the borrower has a good track record of repaying loans and managing credit. This increases the likelihood of the borrower's loan application being approved.
Apart from these eligibility criteria, the loan amount and the interest rate charged on the loan also depend on the maturity period of the fixed deposit. Usually, a higher loan amount is provided if the fixed deposit has a longer maturity period. The interest rate charged on the loan is also generally lower compared to other types of loans. Also Read: Premature Withdrawal Or A Loan Against Fd – Which Is Better?
In conclusion, a loan against a fixed deposit is an excellent financing option for individuals who have some savings but do not want to break the deposit. However, before taking this loan, one must ensure that they meet the eligibility criteria set by their bank or financial institution. Checking the eligibility criteria beforehand will help avoid any last-minute surprises and increase the chances of getting the loan approved.
0 Comments