Securing a Loan Against Fixed Deposit with Union Bank of India

Many individuals find themselves in situations where they need immediate financial assistance, even while their funds are locked into a fixed deposit (FD). Union Bank of India offers a solution for such scenarios. You can obtain a loan against your FD even if you are not in the same city as where you opened your deposit account. Here’s how to do it:

Eligibility and Requirements

To proceed with a loan against your FD with Union Bank of India, ensure that your fixed deposit meets the bank's criteria. Typically, the FD should be in your name and should have a minimum tenure. Additionally, your FD should not be subject to any kind of encumbrance or lien from any other financial institution.

Contacting Union Bank of India

The first step is to contact Union Bank of India's customer service hotline or utilize their online banking portal. This will help you understand the exact process for applying for a loan against your FD. Provide detailed information about your current location and ensure that your documents are ready for submission.

Document Submission

Sending in the necessary documents is a crucial part of the process. The following is a list of common documents you may need to submit:

Fixed deposit receipt Identity proof (e.g., passport, driving license) Address proof (e.g., utility bill, lease agreement) Any other documents as specified by the bank

Documents can be submitted either online or via mail. The bank’s online portal is user-friendly, making it easy to upload your documents securely.

Filling Out the Application Form

The next step is to fill out the loan application form. Most banks, including Union Bank of India, offer online options for this. If you prefer to visit a branch, ensure to call in advance or check their website for operating hours.

Loan Processing

Once your application is submitted, the bank will process it. Generally, the loan amount is a percentage of the FD amount, typically ranging from 80% to 90%. This percentage is determined based on the loan terms and the FD value.

Receiving Funds

If your application is approved, the loan amount will be disbursed to your account. It is important to review the terms and interest rates thoroughly. The interest rates for loans against FDs with Union Bank of India are usually higher than the interest rates offered on FDs, and this will be calculated on a daily basis.

Additional Information

It is worth noting that you can also access a loan or an overdraft of up to 90% of the term deposit amount by visiting one of Union Bank of India's branches in your current city. This is possible due to the bank's 100% computerization, which allows them to easily check the status of your term deposit and place a lien on it.

To summarize, securing a loan against your fixed deposit with Union Bank of India is a feasible solution, even if you are not in the same city. Just ensure you follow the required steps and have all your documents in order before proceeding with your application.