One of the easiest ways to raise funds in times of emergency is through fixed deposits. You have two options for borrowing against your FD: apply for a loan from ICICI Bank or ask for an overdraft from ICICI Bank (OD).
Applying for a Loan Against FD ICICI bank is the most convenient and easy option that does not require any heavy process. Just some easy steps and the loan is passed without the need for any collateral.
What is a Loan Against FD ICICI?
Due to the simplicity of investing, guaranteed returns, flexibility, and other benefits, a Loan Against FD ICICI bank is highly preferable.
This Fixed deposit can be used to earn interest while assisting short- and long-term financial needs. For example, you might take an overdraft or loan against a fixed deposit. The primary requirement is to have a fixed deposit in the bank. The procedure is easy, hassle-free, and straightforward.ICICI Bank, like many financial institutions, offers a loan against fixed deposits (FD) with specific characteristics.
Characteristics of Loan Against FD ICICI Bank Interest Rate
The following table will give you a quick overview of the key details you must know when applying for a loan against FD in ICICI Bank:
| Features | Details |
| Eligibility | Available for individuals with FDs in their name or jointly with a spouse. |
| Loan Amount | Up to 90% of the value of the fixed deposit. |
| Loan Tenure | Flexible loan tenure with a maximum of 18 months. |
| Processing Fees | No loan processing fees. |
| Prepayment Charges | No prepayment charges. |
| Credit History Requirement | Suitable for those without a credit history. |
| Approval and Disbursement | Quick, seamless, and hassle-free approval and disbursement process. |
Eligibility Criteria for a Loan Against Fixed Deposit (FD) with ICICI
- Should be resident citizens of India
- Belong to Hindu Undivided Family
- Family trusts
- Sole proprietorships, companies, and partnership firms, including group companies
- Associations, clubs, and societies
- Non-Resident Indians who have invested in fixed deposits such as Non-Resident External, Non-Resident Ordinary, and Foreign Currency Non-Repatriable deposits are eligible to apply for a loan against their respective fixed deposits.
Benefits of Taking a Loan Against FD ICICI Bank
- There is no additional processing fee to pay, unlike with other loans. The overall cost of the loan is reduced.
- Getting a loan against a fixed deposit is very easy. There is less paperwork to complete because you already have a fixed deposit account. Simply fill out the paperwork, and you can even apply online for a loan against a fixed deposit.
- Many depositors may prematurely remove funds from their fixed deposit accounts to gain quick access to cash in emergencies and unforeseen occurrences. However, if you take out a loan against your fixed deposit, you can keep it intact while taking care of your financial needs.
Comparison of Loan Against FD ICICI Bank with other Banks
| Features | ICICI Bank Loan Against FD | Other Banks Loan Against FD |
| Interest Rate | Competitive | Varies among banks |
| Loan Amount | Up to a percentage of FD value | Similar percentage terms |
| Loan Tenure | Linked to FD tenure | Linked to FD tenure |
| Processing Fee | Applicable | Applicable, may vary |
| Prepayment Charges | Applicable, check terms | Applicable, check terms |
| Repayment Structure | Flexible options | Varies among banks |
| Documentation | Minimal documents required | Similar documentation |
| FD Continuity | FD continues to earn interest | Typically continues to earn interest |
| Eligibility Criteria | FD holder, age criteria, creditworthiness | Similar criteria |
What is a Loan Against Fixed Deposit (FD) from ICICI Bank?
ICICI Bank provides a Loan Against Fixed Deposit, allowing customers to leverage their fixed deposits as collateral to secure a loan.
How does a Loan Against FD ICICI Bank work?
Customers can make their fixed deposit with ICICI Bank to obtain a loan. The FD serves as security for the loan amount.
What is the Loan Amount I can get?
The loan amount is typically a percentage (e.g., 80-90%) of the FD value.
What is The Interest Rate on a Loan Against FD from ICICI Bank?
Interest rates are usually lower compared to personal loans as the FD acts as collateral.
Can I Still Earn Interest on my FD During the Loan Tenure?
Yes, the FD continues to earn interest on the remaining amount even though it's pledged as collateral for the loan.
How can I get a loan against my FD from ICICI Bank?
You can choose from several options to get a loan on ICICI Bank FDs. You can opt for either online or offline modes to do so. For offline, you will be required to visit the home branch where you hold an FD. Talk to the bank executives. The online process is less cumbersome. In fact, the online application facilitates added convenience. You can apply through internet banking or the iMobile mobile banking application. Navigate the options present and choose the loan over the FD option.