Loan against Axis Bank Fixed Deposit
It is very beneficial to open a fixed deposit with Axis Bank. The bank's term deposits come with assured investment returns with attractive interest rates, as compared to regular savings account.
Now customers can also avail a loan against the fixed deposit account opened with Axis Bank. The loan amount can be used in time of financial emergency, without the need of liquidating the fixed deposit.
Eligibility Criteria for Applying for Axis Bank Loan Against Fixed Deposit
In order to apply for a loan against the fixed deposit offered by Axis Bank, the customer should fulfil the following eligibility criteria:
- Must be a citizen of India
- Customers with valid Axis Bank FD can avail the ODFD facility provided by the bank
Key Features of Loan against Axis Bank Fixed Deposit
Listed below are the main feature of Axis Bank Loan against Fixed Deposit:
Loan Type | Overdraft |
Loan/overdraft amount | Minimum - Rs. 25,000 Maximum - No ceiling |
Rate of Interest | 2% for loan up to 1 crore 3% for loan above 1 crore 4% for third party customers irrespective of amount |
Period of Deposit | Minimum: 3 months |
Premature withdrawal | Allowed |
Facility for Nomination | Available |
Benefits of Loan against Axis Bank FD
There are a number of perks of availing a loan against your term deposit from Axis Bank. Here are some of the benefits:
- The customer can get up to 85% of the value of the FD as a loan.
- Interest is charged only on the amount utilized for the specific tenure. No EMIs or post-dated checks required.
- Premature withdrawal of deposit can be done. There are no prepayment charges levied.
- ATM card, check book, and Internet banking facilities are available for the overdraft account.
- Loan against your Axis Bank Fixed Deposit can be availed online without undergoing the trouble of visiting the bank physically.
- The overdraft account tenure can be renewed on the basis of the remaining tenure of the fixed deposit.
How to Apply for a Loan Against FD
The procedure to apply for a loan against the amount that is available in the FD account offered by Axis Bank is mentioned below:
- Visit website.
- Click on 'Apply Now'.
- On the next page, you can log in with the help of the mobile number, date of birth, and PAN.
- You can also enter the internet banking or debit card details to log in.
- In case you use the mobile number, date of birth, and PAN, click on 'Send OTP' once the relevant details have been entered.
- Enter the OTP.
- Follow the steps on the next page to apply for a loan.
Loan against Axis Bank Fixed Deposit interest rates
The bank charges competitive rates of interest on its loan against fixed deposits. Here are the rate of interests that are charged on different amounts loaned:
- For loan amount up to Rs. 1 crore, 2% interest is charged over term deposit rate
- 3% rate of interest is charged for loan amount above Rs. 1 crore, over term deposit rate.
- In case of third party customers, 4% interest rate is levied, irrespective of the loan amount.
There are no other charges applied on the overdraft account, apart from the rate of interest. The interest rates charged by the bank on loans against fixed deposits can be changed on the bank's discretion.
FAQs on Loan against Axis Bank Fixed Deposit
- What is the maximum loan amount that can be availed from Axis Bank's loan against fixed deposit?
There is no cap on the maximum amount to be availed as loan. However, the bank will not approve the loan in case it is lower than Rs. 25,000.
- Can I avail a loan against my fixed deposit, in case I'm a third party customer?
Yes, Axis Bank accepts loan requests from third party customers as well. Around 4% interest rate will be charged, no matter what the loan amount is.
- In case I have a medical emergency or economic urgency, will Axis Bank allow premature withdrawal?
Yes. The banks allows premature withdrawal fixed deposits, provided the customer doesn't have any overdrafts against the deposit.
- In case I want to close my fixed deposit before the tenure is over, will the bank levy any penalty or charges?
No. The bank does not charge any penalty for early closure of the account.
- What documents will be required by the bank?
In order to avail loan against fixed deposit from Axis Bank, the following documents are required:
- Properly filled application form
- Agreement duly signed
- Term deposit receipts discharged in favour of Axis Bank
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