Fixed deposits are not just the best investment tools, they provide you other benefits as well. These financial tools provide you special benefits and can be used as rescuers at the time of financial need. Fixed deposit not just offers higher rate of interest, but it also offers you loan facility. You can avail loan on the deposited amount. However, the terms and conditions and rate of interest of loan against the fixed deposit varies from bank to bank. Mahindra Finance offers you loan facility against fixed deposit. It offers you loan amount of maximum up to 75% of the deposited amount. It offers loan to all the depositors who have a live FD with the company, which is more than 3 months old. The FDR will be marked with lien against the released of the loan.
Maximum interest and rate of interest
you can borrow 75% of the deposited amount from the cumulative fixed deposit. The interest rate will be 2% higher than the FD interest rate on cumulative cases. For non cumulative FD the loan can be sanctioned, provided the interest on loan is recovered on maturity of the loan on repayment of FD. In non cumulative FD the rate of interest will be 2% higher the IRR based on the frequency of interest repayment. The loan value will be linked to balance on maturity upto the maximum according to the below mentioned table.
|Loan Tenure||Loan Permissible against FD (Non-cumulative)|
Loan repayment process: The customers are allowed to make the pre-payment of the loan at any time according to their ease. The customers can pay remaining loan amount and interest any time to close the loan before the tenure completion. The company doesn’t charge any pre-closure penalty charges against pre-paying the loan. No customer is allowed to make any partial payments during the tenure. All dues must be settled at one time.
On maturity of the fixed deposit: The outstanding loan along with the interest shall be deposited in one lump sum amount by the customer. The customer can also adjust the amount with the deposited amount at the time of maturity of the fixed deposit. The maturity payment for the loan availed deposits will be done only after receiving the receipt original FDR before 10 days of the maturity date. In case of delay, the company will not be responsible to pay the interest for delayed receipt of original FDR.
Documents required for availing the loan:
- Original FDR document with affixed revenue stamp and duly signed by all the holders at the backside of the FDR under repayment
- Application cum undertaking letter
- Cancelled cheque copy with the bank account. In case, if the name is not imprinted on the cheque the bank statement or the first page of the passbook copy reflecting the bank details of the account holder.
- PAN card copy, if not provided at the time of investment.