To offer financial support to many affected by COVID-19, Jana Small Finance Bank Ltd has extended its Overdraft (OD) facility Against Fixed Deposit (FD) at a nominal interest rate to all its customers across India. The interest rate on this facility is 0.25 percentage points over and above the FD rate with a utilization of 50% or more. Under this facility, up to 90 percent of the FD value can be availed as OD. The special pricing will be available to its existing customers till 31st December 2021 and the customers are requested to apply before 30th June 2021 for the same.
Customers can avail this facility instead of liquidating the FD to meet their liquidity requirements. The Bank emphasized that customers will continue to earn applicable rates of interest on their FDs. Customers can make the payment for the OD facility according to their choice, i.e., either in a lump sum or in installments. Jana Small Finance Bank will not be charging any processing fee for the same. This facility can be availed by providing simple documentation and quickly done.
Commenting on the development, Mr. Ajay Kanwal, MD, and CEO, Jana Small Finance Bank Ltd said, “As the lockdown opens it will help our customers to have a credit line available for their business or personal need without liquidating their deposit. Therefore, we have taken a conscious call to offer the lowest rate of 0.25 percent over the FD rate as we think this is the need of the hour.”
To avail of this facility, the minimum OD FD facility amount with the bank should be INR 10,000 and FD tenure of 180 days or more. The customer can withdraw the money through any available channel of Jana Small Finance Bank Ltd i.e., online, cheque, etc.