Do you have your money locked in time deposits of the Sate Bank of India (SBI) and need money urgently? No, you don’t have to break your deposits to get the money. You may instantly get overdraft/loan up to 90 per cent of your time deposit amount and that too at an interest rate that is just 1 per cent above the relative time deposit rate. The facility may either be availed through the bank branch or through online without any processing charges.
SBI customers having single or joint account, holding term deposit (TDR) or special term deposit (STDR) or recurring deposit (RD) including Non-Resident External Rupee Account NRE / Non Resident Ordinary (NRO) / Resident Foreign Currency (RFC) and Foreign Currency Non-Repatriable (Bank) (FCNR(B)) Deposits can avail this loan.
Online facility to get overdraft against TDR and STDR is available for single account holders. However, the minimum amount of loan for online overdraft against fixed deposit is Rs 25,000 and the maximum is Rs 5 crore. So, minimum deposit needed to avail the facility is Rs 27,778 or say Rs 30,000.
If you are an SBI investor, you may apply for both demand loan and overdraft facility as per your need for up to 90 per cent of your the value of your FD. Moreover, the interest rate offered is as low as just 1 per cent above the relative time deposit rate, which will be charged on a daily reducing balance.
You don’t have to pledge anything as security against the loan, as there will be an automatic lien on the underlying time deposit against which the loan or overdraft is taken.
While, maximum repayment period has been capped at five years against STDR/e-STDR and three years against TDR/e-TDR respectively for overdraft availed online, a suitable repayment schedule may be fixed depending upon the repayment capacity of the borrower for loan taken through SBI branches. Another lucrative feature of this facility is that there is no repayment penalties.