Loan Against Fixed Deposit (FD) is a secured credit facility offered by The Nakodar Hindu Urban Coop. Bank Ltd that allows customers to borrow funds by pledging their fixed deposit as collateral — without breaking the FD and losing interest income. This facility provides quick liquidity while keeping your deposit intact and earning interest.

Key Features & Benefits

► Borrow up to a High Percentage of Your FD: The bank typically provides a loan or overdraft against your FD for up to 85% of the FD amount, making funds available when you need them without liquidating your investment.

► Keep Earning FD Interest: Your FD continues to earn the agreed interest, even while serving as security for the loan.

► Lower Interest Cost: Loans against FD are usually offered at interest rates lower than unsecured loans (often a small margin over your FD rate), making it a cost‑effective financing option.

► Quick and Simple Processing: Since the FD is already held by the bank, documentation and approvals are quicker and simpler compared with regular unsecured loans.

► Loan Tenure Linked to FD Maturity: The loan tenure is typically aligned with the remaining tenure of your FD, so you repay the loan by the time the FD matures.

Eligibility & Requirements

► You must hold an active FD with The Nakodar Hindu Urban Coop. Bank Ltd in your name (alone or jointly) to qualify for this facility.

► Completed KYC documentation is required, as per bank policy.

► The FD should not be under any lien or other encumbrances that prohibit pledging.

How It Works

► Apply at Your Branch: Visit your bank branch and submit an application for a loan against your FD.

► Pledge Your FD: The bank marks your FD as security for the loan.

► Loan Sanction: Once approved, funds are disbursed — often directly to your account.

► Repayment: You repay the loan and interest before or by the FD’s maturity date. Any outstanding balance may be adjusted from your FD on maturity if not repaid earlier.