Loan against fixed deposit (LAFD) is a digital loan product offered by the Bank catering the emergency fund requirement of fixed deposit customers to the extent of Rs.2 Lakh instantly through Bank’s mobile banking application and website. LAFD is provided to the existing Fixed Deposit Account holder against the lien on Fixed Deposit.
The customers will experience the instant loan disbursement service available at their fingertips without any documentation.
Any loan amount equal to or below 200,000 shall be immediately credited to the customer's savings account upon a successful submission of application. However, if the customer wishes to apply for a loan amount exceeding 200,000, they must visit the branch for additional processing. The procedures and functionalities for LAFD above 200,000, applied through digital channels, will follow the existing credit policy and product guidelines.
Facility/Product Type
Demand Loan
Purpose
- To finance the short term fund requirement of fixed deposit
Acceptable Security
- Bank's own Fixed Deposit
Repayment Method
- lnterest Payment: Quarterly
- Principal Payment: At Maturity
- Renewable : Yes
Eligibility Criteria
- lndividual NPR FD holders (excluding minor and blacklisted
Eligibility Criteria custome0
Security
- Lien on total coupon amount of FD irrespective of the loan request amount
Processing Fee
Loan Tenure
- Max 1 year or maturity of the Fixed deposit wh ichever is
earlier
Loan Limit
- Lower of 90% of fixed deposit amount or NPR 200,000
