Why Do Individuals opt for Loans Against Their Fixed Deposits?
- Posted:20th November, 2024
- Updated:20th November, 2024
A loan against a fixed deposit is taken for several reasons:
- Lower Interest Rates: The interest rates on loans against fixed deposits are generally lower than those on unsecured loans.
- No Need to Break the FD: This option allows access to funds without breaking the fixed deposit and losing the accumulated interest.
- Quick Approval: Loans against fixed deposits are often processed quickly due to the existing relationship with the financial institution.
- Minimal Documentation: The documentation process is usually simpler and quicker compared to other types of loans.
- No Processing Fees: Most financial institutions do not charge processing fees for loans against fixed deposits.
Popular FAQs
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