In order to offer financial support to its account holders affected by COVID-19, Jana Small Finance Bank Ltd has extended its Overdraft (OD) facility Against Fixed Deposit (FD) at a nominal interest rate
In order to offer financial support to its account holders affected by COVID-19, Jana Small Finance Bank Ltd has extended its Overdraft (OD) facility Against Fixed Deposit (FD) at a nominal interest rate to all its customers across India. The bank said in a statement today that the interest rate on this facility is 0.25 percentage points over and above the FD rate with a utilisation of 50 per cent or more.
The bank said that a customer can get up to 90 per cent of the FD value as OD. The special pricing will be available to the bank’s existing customers till 31st December 2021. To get the OD, customers have been requested to apply before 30th June 2021.
Jana Small Finance Bank customers can avail this facility instead of liquidating the FD to meet their liquidity requirements. The bank also said customers will continue to earn applicable rates of interest on their FDs.
Customers can make the payment for the OD facility according to their choice, i.e., either in lump sum or in instalments. Jana Small Finance Bank will not charge any processing fee for the same. This facility can be availed by providing simple documentation and can be quickly done.
Commenting on the offer, Ajay Kanwal, MD and CEO, Jana Small Finance Bank Ltd said, “As the lockdown opens it will help our customers to have a credit line available for their business or personal need without liquidating their deposit. Therefore, we have taken a conscious call to offer the lowest rate of 0.25 percentage over the FD rate as we think this is the need of the hour.”
The minimum OD FD facility amount with the bank should be Rs 10,000 and FD tenure of 180 days or more. The customer can withdraw the money through any available channels of Jana Small Finance Bank like online, cheque, etc.