Why Do Individuals opt for Loans Against Their Fixed Deposits?

A loan against a fixed deposit is taken for several reasons:

• Lower Interest Rates: The interest rates on loans against fixed deposits are generally lower than those on unsecured loans.
• No Need to Break the FD: This option allows access to funds without breaking the fixed deposit and losing the accumulated interest.
• Quick Approval: Loans against fixed deposits are often processed quickly due to the existing relationship with the financial institution.
• Minimal Documentation: The documentation process is usually simpler and quicker compared to other types of loans.
• No Processing Fees: Most financial institutions do not charge processing fees for loans against fixed deposits.