Loan Against Fixed Deposit?

[adithya]

Has anyone taken loan against fixed deposit? Can you throw some light on this?.
1. I spoke to an sbi person. She told me interest rate is 0.5% higher than the fd. She redirected me to another person who told me its 1% higher. Dont know who is right. does anybody know how much is the int rate? (diff between fd) is this negotiable?
2. How is the payment made to the dealer? Is it that the bank will give a cheque book to me? and i will have to issue a cheque to the dealer? (unlike the regular loan). if this is how it works, wont it catch the Income tax guys's attention?

 

[TSIVipul]

Re: New Ford Figo Hatchback Now Launched @ Rs.4.3 Lakh

Slightly off topic.
has anyone taken loan against fixed deposit?. please share your experience.

Which is your bank?
FD in same bank?
FD value is higher than loan value? (I don't need exact number)
You talked to the bank? What they offering?

As much I remember, taking a loan on the FD is never an issue.

 

[adithya]

Re: New Ford Figo Hatchback Now Launched @ Rs.4.3 Lakh

Thanks. my bank is sbi. fd in the same bank. fd value is higher than loan value.
i talked to bank. one lady told me interest rate is 0.5% higher than fd rate. the other lady told it 1% higher than fd rate. will talk to them again and get it sorted out.
yes. its not an issue. she told, she can give it in just 30 mins. the concern i have is that, it might be treated as full cash payment to the dealer. ( dont want to face unnecessary Income tax dept issues. although everything is white and i file IT returns. salaried one)

Which is your bank?
FD in same bank?
FD value is higher than loan value? (I don't need exact number)
You talked to the bank? What they offering?

As much I remember, taking a loan on the FD is never an issue.

 

[TSIVipul]

Re: New Ford Figo Hatchback Now Launched @ Rs.4.3 Lakh

1) No need to talk to ladies; next time talk to the manager straight ahead to get this interest rate sorted out.

2) A loan is a loan and your FD is just a fool proof guarantee which the bank will keep with them until you pay it back completely. At the time your FD ends, instead of keeping it unused with the bank, talk to the officials and get it converted to a new Fad of higher amount. BTW I have less experience of FDs and hence can't comment more in it.

What I mean is:
Suppose maturity value of your FD after 5 years is 5 lac.
If your FD gets matured after 2 years and your loan tenure is 5 years. Then better is to make an another FD of 5 lac from the sum of same FD and enjoy even higher savings. Because bank is by any ways gonna keep the FD with them only as a guarantee, then why not let the money multiply?

3) Loan is a loan and no one will consider it as a cash purchase. Hence you won't face a single income tax issue in this one. Income tax guys have nothing to do with your white money and your FD, if you are paying taxes rightly (which every job doer does) then you can take the loan without any issues.

For any further clarifications you can talk to some income tax advocate or the CA of your company.

 

[ss64]

Just few days back, I took loan from SBI. I was also today interest is 0.5% more than FD. Amount is credited to your saving's account. You can do RTGS to dealer.

Every month you need to pay interest to bank.

[Edit] Just checked my account. Its 0.5% more than FD interest

 

[adithya]

thanks ss64. considering that the money will be credited your account, and you will then do a RTGS to the dealer, wont it be considered a full cash purchase?

 

[ss64]

No. Only when cash is withdrawn it will be considered cash transaction. In case of RTGS, you will be giving cheque along with RTGS form.