It is a short-term loan, taken making an existing bank FD as collateral security. The bank offer loan up to 90 % of the value of the fixed deposit. The rate of interest is 1-2% above the rate of fixed deposit. The tenure of loan can’t exceed tenure of the deposit. This is the best option at the time of emergency in the family.
It depends upon different banks, as different policies are followed by different banks for their esteem customers. SBI bank uses following criteria for eligibility.