Yes, there is an online mode to apply OD(overdraft) against bank FDs through internet banking and mobile banking. However, it is preferable to apply for OD at a nearby branch because bank staff will assist you and provide further information.
Applying for overdraft against your bank FD is an easy process with Axis bank. The customer has to visit the branch and fill out the application form.
The bank will follow its process and in case you have any queries, the branch executive will provide comprehensive information and also the customer will be informed through SMS on an “overdraft limit granted” basis.
What is the Process of loan/overdraft Sanction process?
Loan sanctioning is the process by which a bank or financial institution approves or declines a business loan request and issues a sanction letter. In a matter of hours, a loan can be approved, and it’s an important step in the credit process.
Before you apply for a loan you should understand the basics of loan sanctioning:
1. The sanctioning of the loan will be subject to a thorough assessment, as per the extant instructions and credit policy of the bank.
2. The availability of margin and security will not be a substitute for the due diligence process.
3. The sanction letter can be issued subject to conditions, such as the submission of additional collateral or a performance guarantee, or the approval of other sanctioning authorities.
4. Loan sanctioning is a lengthy process, and it can take several weeks.
5. Loan processing is the first in a series of steps. After the lender approves your application, it places your loan in one of the three categories: approved, denied, or approved subject to conditions.
Loans initially denied by the lender are referred to a review committee, which analyzes the request and either approves it or refers it to a loan committee. The committee may approve the loan, decline it, or decline it subject to conditions.
6. A loan committee (sanctioning committee) is a group of lenders or bankers who review applications that have been denied by the initial loan committee. If the initial committee rejects the loan, it refers it to the loan committee. A loan committee may approve the loan, decline it, or decline it subject to conditions.
Who is the sanctioning committee? The sanctioning committee has to consider the credit position of the bank, the repayment capacity of the borrower, the operational efficiency of the bank, the profitability of the branch, the future prospects of the branch and other relevant factors.
7. If the loan committee approves the loan, it issues a sanction letter. The customer can pay off the approved amount, or start making loan payments.
8. After delivery of the sanction letter, the candidate’s address and account details shall be intimated to the concerned bank branch.
9. The concerned Bank branch shall collect security for the sanctioned loan amount.
10. The security to be collected shall be deposited by NCD (non-transferable deposit).
11. The security to be collected shall be deposited in the name of the Bank.
How to apply for 24×7 Overdraft (OD) against bank FD in online:
Note: Keep the KYC and FD documents as soft copies before applying.
Apply through Internet banking
1. Log in to Internet Banking
2. Go to ‘Apply Now’ Section
3. Select Loans
4. Now click on Quick OD
5. Fill in the Details asked
6. Once you apply, OD number will be generated after verification, and your funds will be credited promptly.
Apply through Mobile banking
1. Log in to the Mobile Banking application on your phone
2. Got to Loans section
3. On that you see Quick OD
4. Click on that and Fill in the Details and upload the required documents.
5. Once you’ve completed the process, verification will take place, following which your unique OD number will be generated, and your funds will be credited.
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Advantages of apply OD against bank fixed deposit FD:
In many cases, people find themselves in a position where they need money. Whether it’s a special occasion, an urgent medical expense or an unexpected situation, there are times in life when you just need that extra cash.
Banks offer a variety of loans, but these loans can be difficult to secure for people with less-than-perfect credit scores. There are several advantages to opting for a loan against a bank fixed deposit, Let see it.
- starting with the fact that banks offer up to 85% of the value of a fixed deposit.
- Fixed deposits can take up to 15 days to be disbursed, which might not be fast enough.
- But loan against bank fixed deposit is a simpler and quicker way to get the money you need, without destroying a valuable investment.
- Likewise, compared to other loans, the approval and disbursement process is quick and efficient.
- You don’t even have to pile up paperwork like you do with other loans.
- The rate of interest is lower than for a personal (unsecured) loan.
- With loan against bank fixed deposit, you don’t have to worry about falling
Are there any penalties for paying off a loan early in Axis bank?
No, the customer doesn’t charge a prepayment penalty, you can close the loan at any time without paying a fee. The prepayment charge or penalty for early repayment is an important consideration for any borrower. The prepayment charge is the difference between what a borrower pays when he closes the loan and what he pays when he renews the loan.
What is Axis Bank’s current interest rate for loans against FD?
The interest rate is 2% more than the rate on a term deposit – less than a Personal loan.
How much can I borrow loan / OD Against FD in Axis?
The minimum loan amount is RS 25,000 and gets up to 85% of your FD Total value.
Reference Link: 24×7 Instant OD