anuragmukherjee28
Moderator
Here's a table comparing overdraft against FD and loan against FD:
| Feature | Overdraft against FD | Loan against FD |
|---|---|---|
| Flexibility | More flexible; withdraw and repay as needed | Less flexible; fixed loan amount |
| Interest rate | Lower than personal loans, higher than FD rate | Fixed, typically higher than overdraft rate but lower than personal loans |
| Processing fees | Usually none | May be charged by some banks |
| Impact on FD | No impact on maturity or interest | May affect maturity or interest |
| Limit | Lower limit | Higher loan amount available |
| Repayment | Flexible, no fixed schedule | Fixed repayment schedule |
| Risk of overspending | Higher due to easy access | Lower due to structured repayment |
| Best for | Short-term needs, small amounts, those who value flexibility | Larger amounts, longer terms, those who prefer predictability and structure |