What is lien amount in FD?
If you deposited the FD as the security against a loan, you can’t withdraw the FD amount under any case as the bank marked it as the lien amount.
If you failed to repay the EMI of a loan, the bank might place a lien on account of the EMI amount..
How do I remove a lien from my fixed deposit?
1. If the card was issued based on a lien on a fixed deposit, the lien will be removed once all card dues are cleared. 2. It is best to redeem all reward points associated with the card before cancellation.
Why lien is marked?
If you have taken a loan and you have offered the fixed deposit or term deposit as the security against the loan then your account will be marked as the lien and you won’t be able to withdraw the money from it.
Is it good to take loan against FD?
Industry experts suggest one can opt for a loan against FD when one is looking for a better loan rate when compared to personal loans. Usually, the interest rate on personal loans ranges from 14 per cent to 30 per cent per annum.