Is Loan against FD and Overdraft against FD same ?

POSTED BY Nitin Avula ON January 7, 2014 4:36 pm ONE COMMENT

Hi All,

Firstly I want to know whether Loan against FD and overdraft against FD are both same? If not, which one to opt for. Secondly, I have a FD from SBH Bank, Can I take a loan from other bank on this FD, or atleast from a different branch of SBH?

Thirdly, my FD is fairly new about 45 days old, still can I take a loan of my FD. I am only looking at around 50% of my FD amount as loan and plan to repay it much early that the FD maturity.

I have done a extensive search but couldn’t find much info. Can some one help me with these queries.




One reply on this article “Is Loan against FD and Overdraft against FD same ?”

  1. ashalanshu says:

    Dear Nitin, in case of loan, you need to pay regular EMIs whereas in case of Over Draft, you do not need to pay regularly. You can withdraw from the OD account as per your will and deposit also as per your will. The interest ‘ll be charged only on the used amount and not on the entire amount in OD. In loan, you w’d have to pay interest on full loan amount.

    From your query, I w’d prefer OD against the said FD in any branch of SBH. Due to CBS, you ‘ll get the job done in 15-30 min.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.