Loan Against Deposits

Loan Against Deposits


Loan against Fixed Deposit Bank.

Janatha Bank offers loan up to 90% against its own deposit.


Janatha Bank will not give loan against FD of any other bank.
Janatha Bank offers loan against FD at the rate of 4.5% to 8.65%.
Maximum loan tenure is restricted up to the maximum tenure of the FD.

Illustration - Mr. Rahul has opened a fixed deposit of Rs.100,000 for 2 years in bank. The borrower later decided to take loan against his FD at 10% interest rate. Now, if the borrower draws Rs.90,000 on the first of the month and then repays the money on the 1st of next month, then he supposed to pay interest on Rs.90,000 availed for 1 month only. The amount he repays after 1 month is Rs.90,744. So, the interest charged on the loan taken is Rs.744.

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