Loan Against Axis Bank FD

A Fixed Deposit (FD)bank, as we all know, is a secure way to generate wealth, particularly for investors. It takes care of your liquidity needs, addresses short-term goals, and can even help in tax planning (a 5-year Tax Saver bank FD ).

But along with these options, a bank FD also stands as the last option in tough conditions when you are in dire need of funds. Yes, it helps in contingency planning. You can avail a Loan Against FD Axis Bank. 

Broadly, you have two options during an emergency: liquidate bank FD or take an overdraft facility. If you choose to liquidate bank FD, it can disrupt the path to wealth creation and accomplishing financial goals.

Hence, taking an overdraft facility against your bank FD is a better option as you continue to earn interest on the bank FD and get access to funds. 

Banks these days offer loans against FD, which is the best option to generate funds when it's required the most. 

Axis Bank's Loan Against FD Features

Axis Bank's Loan against FD is applicable for all the customers who have Axis Bank FD. All the required things to commence the process include: 

• Fixed deposit receipts duly discharged in favour of the bank
• Duly filled and signed application form

Axis Bank’s overdraft against fixed deposits  provides access to liquidity of 85% of the value of  Fixed Deposit/s with Axis Bank. The minimum loan amount is Rs 25,000.

Axis Bank grants overdraft facility with a chequebook, ATM card, internet banking and mobile banking facilities.

Axis Bank's Loan Against FD Application Process

Preparing for Application

• Reviewing Eligibility Criteria
• Ensuring Fixed Deposit Compliance
• Gathering Required Documentation

Choosing Application Channel:

   a. Online Application: 

•  Navigating the Axis Bank Website
• Creating an Account and Logging In
• Accessing the Loan Against FD Application Form

   b. Offline Application:

•  Visiting the Nearest Axis Bank Branch
• Requesting a Loan Against FD Application Form
• Completing the Form with Accuracy

Document Submission:

   a. Online Submission:

•  Uploading Scanned Copies
• Ensuring Document Clarity and Legibility

   b. Offline Submission:

•  Verifying Document Copies
•  Submitting Physical Copies at the Branch

Verification Process:

   a. Internal Review by Axis Bank:

• Cross-Checking Provided Information
•  Validating Fixed Deposit Details

   b. Communication of Additional Requirements:

• Responding Promptly to Requests
•  Facilitating a Smooth Verification Process

Application Review and Approval:

   a. Timelines for Application Review

   b. Factors Influencing Approval:

• Credit History
• Fixed Deposit Value
• Repayment Capacity

   c. Communication of Approval Status:

•  Email Notifications
• SMS Updates

Disbursement of Loan Amount

   a. Confirmation of Approved Loan Amount

   b. Modes of Disbursement:

• Crediting to Axis Bank Account
• Cheque Issuance

 Timelines for Repayment Setup

   a. Choosing Repayment Options:

• EMI Structure
• Interest-only Repayment

b. Setting Up Automated Repayment:

• Auto-Debit Facility
• Standing Instructions

Customer Support and Assistance:

• Contacting Customer Support for Queries
• Addressing Concerns during the Application Process
• Post-Disbursement Support Channels

 Monitoring Application Status

• Online Application Tracking
•  Seeking Assistance for Delays or Concerns
•  Ensuring Transparency in the Process

Benefits of Loan Against FD Axis Bank 

 Loan Against FD Axis Bank has numerous benefits that fulfil the financial needs of individuals who need immediate liquidity while retaining the advantages of their fixed deposits. One of the key advantages is the quick and hassle-free access to funds. By using their existing fixed deposit as Collateral, borrowers can bypass the lengthy approval processes associated with traditional loans, making it an efficient solution for urgent financial requirements.

Importantly, borrowers can access the funds they need without compromising the benefits of their fixed deposits. The underlying fixed deposit continues to earn interest, ensuring that individuals can maintain their wealth-building strategy even as they access funds. This dual benefit of liquidity and continued earnings positions Axis Bank's Loan Against FD as a strategic financial tool.

Furthermore, the interest rates offered by Axis Bank on loans against FD are often more competitive than those of unsecured loans. This leads to cost savings for borrowers, making it a financially effective choice. The application process requires minimal documentation, reducing the administrative burden on applicants. This simplicity and a smooth approval process enhance the overall experience of the customer.

Flexibility is another advantage, particularly in the repayment structure. Borrowers can choose between interest-only payments or opt for Equated Monthly Instalments (EMIs), aligning the repayment plan with their financial abilities. The option for prepayment adds flexibility, allowing borrowers to manage their finances more efficiently.

Comparison of Loan Against FD Axis Bank with Other Loan Products