Loan Against Fixed Deposit (FD) I 8 Benefits Of Taking A Loan Against Fixed Deposit
To know more about Fixed Deposit, click on the following link: https://cleartax.in/s/fd-fixed-deposits Tax-Saving FD for Section 80C Deductions https://cleartax.in/s/tax-saving-fd-f... Income Tax on Fixed Deposit (FD) Interest Income | FD Tax Benefits | TDS Deduction | Form 15G & 15H • Income Tax on Fixed Deposit (FD) Interest ... Liquid Funds Vs Fixed Deposits | Where Should You Invest? • Liquid Funds Vs Fixed Deposits | Where Sho... Fixed Deposits Offered by Union Bank of India | Current Interest Rates and Tax Benefits • Fixed Deposits Offered by Union Bank of In... Tax Saving Fixed Deposit I Meaning I Benefits • Tax Saving Fixed Deposit I Meaning I Benefits In life, we may be faced by certain unforeseen events and emergencies which we are emotionally and financially unprepared for. While we can always look up to our closed ones for emotional support, when it comes to financial aid, a Bank or an NBFC often proves to be our best bet! While opting for the readily available Personal Loans is the norm in such situations, it may not always be possible due to multiple reasons such as inability to bear a high-interest loan, poor credit history, absence of a steady source of income, or absence of proof of employment. Yet another source of quick cash is the money lying in your Fixed Deposit Account. However, pulling out that money before its maturity usually means a substantial loss on the accrued interest. Thankfully, Banks and NBFCs across India understand this situation and therefore provide a great alternative, i.e., Loan Against Fixed Deposit. As the name suggests, a Loan Against Fixed Deposit is where a lender offers you a secured loan, wherein your fixed deposit account acts as collateral. Here, the maximum loan amount offered ranges from 75 to 90% of the value of your fixed deposit account. In this case, the interest rate charged on loan is slightly higher than that you are earning on the FD account. Besides, the lender ensures that the repayment tenure of the loan ends before the maturity date of the FD account. What is a Fixed Deposit? Fixed deposits are an investment instrument provided by banks and other financial institutions such as non-banking financial institutions (NBFCs) and housing finance companies (HFCs). Under this, investors would deposit a lump sum over a period. In turn, they would get a fixed rate of interest throughout the investment. The rate of interest provided on FDs is much higher than that of a regular savings bank account. Once the tenure of the deposit ends, investors can withdraw their investment. However, they have a choice of reinvesting their money for another term. Who Offers Fixed Deposits? All scheduled commercial banks and some NBFCs and HFCs in India offer fixed deposits. However, if investors are to invest in FDs provided by an NBFC or HFC, then they first need to check the ratings provided by agencies such as CRISIL. This is to make sure that your money is safe. Private sector banks and other financial institutions may offer a slightly higher rate of interest than the public sector banks. Features of Fixed Deposits The following are the key features of fixed deposits: 1. The investment tenure of FDs ranges from one day to several years, and it varies across banks 2. The return on investment is compounded periodically, and it may be monthly, quarterly, or annually 3. Senior citizens are provided with slightly higher returns (0.5% higher) 4. Partial or full withdrawals are permitted (with penalties) 5. Taxpayers can invest in tax-saver FDs to save taxes under Section 80C 6. Once the investment matures, investors can reinvest for another term 7. Loan against FDs are available 8. Investors will accumulate higher returns if they invest for a more extended period Individuals seek loans from a variety of lenders while they are in a fiscal crisis. Applying for loans against fixed deposits (FDs) from banks is one of the options that your bank sanction in just a matter of minutes. Rather than unnecessarily closing your FD, you can conveniently apply for a loan against your FD. Here're the 8 benefits of taking a loan against your fixed deposit. Let us know what you think about the video and comment below if you have any doubts and we will try to reply to it as soon as we can. Also, donot forget to like, subscribe and share this video. Stay tuned to our channel for more informative videos ! Follow ClearTax on Twitter: / cleartax_in Follow ClearTax on Instagram: https://instagram.com/cleartax?igshid... Follow ClearTax on Facebook: / cleartax #FixedDeposit #FD #Invest #investing #Bank #Loan #Investment #Benefits
