Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
What is a fixed deposit?
Fixed deposits are investment plans in which you can deposit lump sum money and collect interest over a certain period. It provides secure and guaranteed returns, allowing you to grow your money more quickly than a savings account. However, making a premature withdrawal in times of necessity can result in a loss of returns and a penalty charge. So, instead of prematurely withdrawing your FD, you can get a loan against it.
What is a loan against an FD?
A loan against a fixed deposit (FD) is a form of secured loan in which customers pledge their fixed deposit as collateral and get a loan in exchange. The loan’s amount is determined by the amount of the FD deposit.
By choosing a fixed deposit loan, you can gain access to funds without compromising your long-term investment. This strategy helps you to meet your immediate financial demands while protecting the potential return on your FD.
Who can apply for a loan against an FD?
– A loan against fixed deposits is offered to all fixed deposit holders, whether solo holders or those with joint accounts.
– FD in the name of a minor is not qualified for this facility.
– Investors with a 5-year tax-saving FD cannot apply for this sort of financing.
Interest rate and repayment period
The interest rate levied on loans against FDs fluctuates between 1 and 2% above the FD rate and can be repaid in up to 60 months. The rates are also lower than those for personal loans, which means that the EMIs are cheaper.
Eligibility criteria to apply for a loan against FD:
To be eligible for a loan against an FD, you must have a fixed deposit with the bank from which you are borrowing and any of the individuals or businesses listed below can apply for the loan:
Resident Indian citizens
Family Trusts
Hindu Undivided Family (HUF)
Clubs, societies, and associations
Sole proprietorships, group companies, and partnership firms
How to apply for a loan against a fixed deposit:
Step 1: Contact your bank to learn about their loan policy against FD.
Step 2: Fill out the application by providing essential information, such as the FD account number and loan amount required.
Step 3: Submit the required documents like Aadhaar, PAN and FD receipts.
Step 4: The bank will process the loan and approval is typically quick.
Step 5: Following this, the loan amount will be credited to your account.