Investors of Citibank fixed deposit can avail the facility to take loan against FD. There are times when one has to face a financial emergency and in those times the first thing he can put his hands on is taking a loan, be it at high interest rate. To save one from such situation, Citibank FD accountholders can avail of loan against fixed deposit.
What is Loan against FD?
This is a type of secured personal loan which can be taken by those who have an active fixed deposit account. There is a limit sanctioned by the bank at the time of booking which is usually 75-95% of the deposit amount (principal). To avail this loan, the applicant is asked to submit the FDR which is the Fixed Deposit Receipt to the bank as a collateral/security. The rate of interest charged against such loan is lower than unsecured loans.
Who can get Citibank Loan against FD?
The following persons having a fixed deposit account with the Citibank may apply for loan against their FD:
- Resident individuals above the age of 21 years
- Sole proprietorship & Partnership Firms
- Limited companies
- Public limited companies
- Stock brokers
What is the loan limit?
Allowing maximum liquidity and access to the depositors, Citibank allows them to take loan of up to 90% of the deposit amount. This means that an FD of Rs. 1 lakh will fetch investors with a maximum loan amount of Rs. 90,000.
It should be noted that to avail this facility, minimum deposit should be of Rs. 1 lakh.
Advantages of Citibank Loan against Fixed Deposit
Loan against FD is an affordable option to finance one’s needs without having to compromise with the budget. The following are the benefits one can get on availing this feature:
- Deposits held by members of the same household can be used to take loan against FD
- Interest is charged only on the loan amount and not on the entire FD against which loan is taken
- It requires filling and submission of a simple Application Form to initiate the application process
How to Apply for Citibank Loan against FD?
To self-finance one’s money needs using the option of loan against FD, the following steps are all that’s needed:
- Visit the official website of Citibank or mobile app of ‘Citi Mobile’
- Under the Loans section, navigate to Loans against Fixed Deposits
- Click and download the Application Form for Individuals or Non-Individuals, as per the case
- Contact the relationship manager who will provide you with a complete list of documents to submit
- Collect all the documents and submit the same along with the properly filled and signed Application Form to complete the process