An Advance Against Fixed Deposit (FD) is a secured loan facility where a customer uses their own term deposit as collateral to obtain immediate funds. Instead of prematurely closing the FD and losing interest, the bank provides a loan or overdraft (usually up to 90% of the deposit value). The customer continues to earn interest on the original FD, while only paying interest on the amount borrowed.
SIGNIFICANT FEATURES:
- 90% of FDr amount to be given as Loan/OD.
- Loan AGAINST FDr
- Overdraft in CASH CREDIT / CURRENT A/C
- FDr presented, as a security will be lien marked in favors of bank.
- Third party FDr is also accepted as a security.
Interest Rate is Rate Of Interest In FDr + 1.00%.
