Don’t close your Fixed Deposit (FD)!!!

 

Future is always uncertain; intelligent are those who are always prepared for the worst. Proper financial planning can lead you to financial success and the improper one can destroy your future. Fixed Deposit can save you from such destruction. Today we will discuss about how you can take benefits of your Fixed Deposit to avail Secured Overdraft from Bank.

Fixed Deposit mostly known as FD among general customers of bank. This is the money people save for a future plan. As the future is uncertain anyone may fall into problem before this gets matured. In such situation he/she may need to close the FD before it gets maturity.  Though this problem arises once in a while but can lead to problem in your financial planning. To help you in such situation a loan can help without closing your FD. This loan is as Secured Over Draft (SOD). 

During the time of cash crunch or emergency Secured Over Draft (SOD) can be your friend. Rather borrowing from friends or relatives this option is less time consuming and hassle free. Banks take the FDR as collateral of your loan. In this type of loan you will get a specific limit (generally up to 80-90% of the principal amount of FDR). You can withdraw any amount within the limit. 

Generally Term Loan has a fixed tenure of repayment but this case initially you will a get 1 year to repay the loan. But, nothing to worry about you can renew the account until you are able to close the loan. 

Apart from that, the interest rate of the loan is very low comparing to other loans. It is generally 2-3% higher than the interest rate of the FDR. This rate varies from time to time according to the rate of FDR the bank is offering. 

Benefits of SOD at a glance:

1. Low interest rate
2. Minimum documentation
3. No need to close the FDR
4. Can be availed within a day
5. No processing fee

Documents Required:

1. Fixed Deposit Receipt
2. NID
3. 1 Copy Photo
4. Duly Filled Application Form

List of Banks Offering SOD

Mercantile Bank Ltd.

Dutch Bangla Bank Ltd

BRAC Bank Ltd.

Pubali Bank Ltd.

Jamuna Bank Ltd.

Social Islami Bank Ltd.

Prime Bank Ltd.

Sonali Bank Ltd.

Agrani Bank Ltd.