Features of Bank of Baroda Loan against FD
The following are the features that define the Bank of Baroda loan against FD, i.e. Loan against fixed deposit:
- The loan can be opted in two ways, viz. demand loan and overdraft against term deposit
- Up to 95% of the outstanding balance in the FD account is available for loan
- Minimum of Rs. 25,000 to be taken as a loan against FD
- Interest charged as per the bank’s updated guidelines
Benefits of Bank of Baroda Loan against FD Facility
The following are the points due to which opting for a loan against a deposit from Bank of Baroda is a preferable choice compared to breaking the FD:
- Liquidity is not hampered as the depositor does not have to break the deposit while catering to the cash requirements
- Interest charged is lower as compared to unsecured loans as this loan is disbursed by keeping the term/fixed deposit certificate as a lien with the bank
- The bank gives one of the best upper limits (up to 95% of the deposit amount) to avail the loan against the fixed deposit with the Bank of Baroda
- On availing of the overdraft facility, depositors can borrow amounts simply by drawing a cheque, via ATM card, or using internet banking
Who can apply for BOB Loan against FD
The process to avail a loan against a fixed deposit account at Bank of Baroda can take as little as a day of processing time, provided that the applicant meets the following eligibility requirements:
- The applicant must be a citizen of India
- The applicant should be able to produce a valid Bank of Baroda Fixed Deposit account
Documents Required to Apply for BOB Loan against FD
To make a successful application, the following documents must be submitted:
- Fixed deposit receipts of your account with Bank of Baroda
- Loan application form, duly filled and attested
- The duly signed loan agreement