Your Cookie Settings

Select and switch on & off the cookie settings you are comfortable with

Essential

These cookies are vital for smooth browsing, faster page loading, and ensuring the website works as it should. This feature is always active.

Performance & Statistical

These cookies recognize you, remember your preferences, and track site performance, ensuring proper functionality without direct identification.

Targeting

Targeting cookies customize your experience by showing offers that match your interests, making your visit more relevant and engaging.
header main logo header main logo

About Loans Against FD

What is a Loan Against FD for NRIs?

A Loan against a Fixed Deposit (FD) allows Non-Resident Indians (NRIs) to borrow funds using their NRO, NRE, or FCNR Fixed Deposits as collateral. This facility enables NRIs to secure a loan of up to 90% of their deposit value on NRE/NRO Deposits and up to 85% of their deposit value on FCNR deposits (applicable for select currencies) with a maximum capping of ₹ 5 crore. It enables NRIs to meet short-term financial needs without breaking their FDs.

Loan Disbursement Process

The Loan Against an FD will be provided by creating a New NRO account for the customer, and the customer can utilise those funds within India up to the approved limit. This ensures convenient access to funds based on financial needs and preferences.

Repayment Process for the Loan

Borrowers can repay through Direct remittances, existing NRO account or FD adjustment. These multiple repayment methods provide convenience and ease of managing the loan without affecting financial stability.

Benefits of a Loan Against FD for NRI

A Loan Against FD offers quick access to funds with minimal paperwork and flexible repayment options. It allows NRIs to utilise their Fixed Deposits without breaking them while continuing to earn interest.

FAQs

What is the minimum amount with which I can open an NRE Fixed Deposit?

The minimum amount to open an NRE Fixed Deposit is Rs. 25,000.

Are my NRE Fixed Deposits funds repatriable?

Yes, both the principal amount and the interest earned are fully repatriable.

Is interest earned on NRE Fixed Deposit taxable in India?

No, the interest earned on NRE Fixed Deposit accounts is not taxable in India.

What is the tenure for which I can open an NRE Fixed Deposit?

You can maintain an NRE Fixed Deposit for a period of 1 year to 10 years.

Can I have a joint account holder for this account?

Yes, you can hold a joint account with other Non-Resident Indians or Resident Indians. You can also register a nominee for this account.

Note: For joint accounts with Resident Indians, the mode of operation must be Former or Survivor, where only the primary applicant has rights for financial and non-financial transactions.

What will happen to my Fixed Deposits once they mature and I forget about them?

If you forget, we will automatically renew your Fixed Deposit and it will continue earning attractive interest rates. If you open the account under non-auto-renewal mode, you must provide written maturity instructions.

Will I get a chequebook and an ATM-cum-Debit Card when I open an FCNR/NRE/NRO/RFC Fixed Deposit

No, you will not receive a chequebook or an ATM-cum-Debit card with your Fixed Deposit.

Disclaimer

PROCEED