- In case of emergency and for temporary
needs you can always avail loan against the Bank deposits.
Almost all banks are keen and are ready to extend such facilty on
demand.
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- Banks usually allow you loan upto 75% of
the total deposit PLUS the interest earned till date of sanction of
loan. However, now number of banks have allowed higher
percentage of loans which have shorter maturities.
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- Banks usually charge 2% more than the
interest payable on the deposits against which the loan is sought
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- If you need money and wants premature
cancellation of the FD, and the maturity date is falling within next
few weeks, it is usually beneficial to avail loan against the Bank
deposit rather than go for pre-mature cancellation.
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