Loan against fixed deposit is a secured loan where you can pledge your deposit as collateral and get a loan in return. In case of a financial emergency such as medical expenses or paying off for marriage, people tend to look out for loans from a lot of sources to meet their needs.
Last Updated Date: May 17, 2022
Bank of Kathmandu is a commercial bank in Nepal that merged with Lumbini Bank. Bank of Kathmandu is currently trading in Nepal Stock Exchange with symbol BOKL. BOK has provided a dividend return of 25 percent in fiscal year 2074/75. Bank of Kathmandu Limited has appointed Nabil Investment Banking Limited as it’s share registrar. Bank of Kathmandu Limited has become a notable name in the Nepalese banking scenario today with a high ranking performance.Bank of Kathmandu Limited today has created a milestone in the Nepalese banking sector by being among the few commercial banks which is entirely managed by Nepalese professionals and owned by the general public and by becoming one of the largest private sector commercial banks in the country in terms of capital base, number of branch locations, ATM networks and customer base.
Loan against FD (Fixed Deposit) is a type of secured loan where customers can pledge their fixed deposit as security and get a loan in return. The amount of loan depends on the FD deposit amount. This can go up to 90% – 95% of the deposit amount. During a cash crunch or emergency, people tend to look for loans from a lot of sources. One of those sources can be getting loans against fixed deposits (FD) from banks. This is a time-efficient way of getting a short-term loan. Instead of breaking the FD prematurely, depositors can easily apply for a loan against their FD with the bank. When availing loan against fixed deposit, banks keep customer’s FD as the collateral. This makes the loan thus raised secured. Since it’s a secured loan, interest charged for the same is cut short. In case the loanee is not able to repay the loan amount, the bank can easily procure it from the FD amount. Usually, this amount is settled at the time of maturity.
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