Loan Tips: Instead of a personal loan, this loan is the cheapest, interest is less, and processing fees will also be saved...

Nowadays, it is not easy to do every work with the help of cash. In this era of inflation, you need a loan, etc. Anyone may need money at any time. When the need for money is not fulfilled from anywhere, then people resort to personal loan tips. However personal loan interest rates are higher. Besides, while taking a loan, one has to pay processing fees, etc.

If you are also thinking of a personal loan, then know about the facility of loan against FD. A loan against FD is cheaper than a personal loan. Apart from this, you also get rid of the hassle of processing fees, etc. Know here the special features of loans against FD.

Know for whom a loan against FD is a better option

Suppose you have made a long-term FD and you need money in between, then instead of breaking the FD or taking a personal loan, you can choose the option of a loan against the FD. On breaking the FD, you will get less interest than the prescribed interest and will also have to pay a penalty. In such a situation, if you choose the option of loan against FD, then your savings will also be saved and you will repay your loan gradually with a lower interest rate.

How much amount will be given as a loan on FD?

Now the question arises how much amount will you get from the bank as a loan on FD (FD Loan processing fee?), it depends on the amount of your FD. Generally, you get 90 to 95 percent of the FD amount as a loan. Let us tell you that the loan taken against FD is considered a secured loan. While taking this, banks pledge your FD as security/guarantee.

How much cheaper than a personal loan?

The interest charged on loans taken against FD is usually 1% to 2% more than the interest rate on FD. Suppose you have made an FD for 5 years and you are getting 7 percent interest on it, then you will get the loan with 8 to 9 percent interest. It can be from 11% to 14% or even more. Apart from this, you also have to pay a processing fee on a personal loan, but there is no processing fee on FD (no processing fee on FD).

Know what should be the tenure of repaying the loan?

Another question that often arises in the minds of people is that in how many years the loan amount taken against FD has to be returned. So the answer is that the tenure of your loan depends on the tenure of your FD. You have to repay the loan before the maturity of the FD against which you have taken a loan.

If you are not able to repay the loan on time, then that loan is covered with the amount of your FD. Also, you can repay this loan in a lump sum or installments as per your convenience.