Is it mandatory to have FD to avail Housing Loan?

POSTED BY Suhasp ON November 11, 2013 2:10 pm COMMENTS (4)

My sister waswas planning to purchase a house in Palghar and for that she & her husband had applied for housing loan to HDFC Bank.

But to their surprise, the bank was insisting that they should have Fixed Deposit (it can be at any other bank too) of 15% to 20% of the total housing loan. They are going to avail the loan of Rs. 15 lacs, hence, they should have the FD of Rs. 3 lacs min, which was not possible for them. The bank is asking for the provision of this amount without which they won’t sanction the loan.

Is it really mandatory to open FD for availing Housing Loan?

4 replies on this article “Is it mandatory to have FD to avail Housing Loan?”

  1. Suhasp says:

    Thank you Manish for your response. I will convey this to my sister and brother in law. You are always approachable. 🙂

  2. There is no such requirement . Tell him why he is asking you to open a FD when RBI has mentioned that no Cross selling has to be done while selling loan products . Tell him you can get him out of his job if he tries all this on you . Really mention this on his/her face and you really have that power as investor .


  3. battula says:


    NO. You no need to have any FD to avail homeloan. MAy be the bank person was putting in a such a situation so that you can open an FD with them.
    Don’t go to any bank person saying without that loan nothing will work for that..Many people will try to make use of the situation and make you to buy one or the other product which is of no use for you.
    Try checking with other banks as well .


    1. Suhasp says:

      Thank you Battula for your response. I have conveyed this message to my sister and brother in law. They will now approach other banks.

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