It is offering an interest rate of 0.25% p.a. over the FD interest rate on OD against FD facility to its customers
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 to fulfil their emergency credit needs. The interest rate on this facility is 0.25 per cent points over and above the FD rate with a utilisation of 50 per cent or more. Up to 90 per cent of the FD value can be availed as OD.
The special pricing will be available to its existing customers till December 31, 2021, and the customers are requested to apply before June 30, 2021, for the same.
Customers can avail of this facility instead of liquidating the FD to meet their liquidity requirements and will continue to earn applicable rates of interest on their FDs. Customers can make the payment for the OD facility according to their choice and the bank will not be charging any processing fee for the same.
“As the lockdown opens it will help our customers to have a credit line available for their business or personal needs without liquidating their deposit. Therefore, we have taken a conscious call to offer the lowest rate of 0.25 per cent over the FD rate as we think this is the need of the hour,” said Ajay Kanwal, MD, and CEO, Jana Small Finance Bank.
Customers availing of this facility must have the minimum OD FD facility amount of Rs 10,000 and FD tenure of 180 days or more. They can withdraw the money through any available channel of Jana Small Finance Bank Ltd.