Jana SFB extends overdraft against fixed deposits to all customers
- Customers will continue to earn applicable rates of interest on their deposits and they can pay for the overdraft facility either in lump sum or in instalments
MUMBAI: Jana Small Finance Bank on Monday said it has extended its overdraft facility against fixed deposits to all its customers.
The interest rate on this facility, it said, is 25 basis points (bps) over and above the fixed deposit rate, with a utilisation of 50% or more. Under this, up to 90% of the deposit value can be availed as overdraft. The special pricing will be available to its existing customers till 31 December and customers need to apply before 30 June, the bank said.
It said customers can avail this facility instead of liquidating fixed deposits to meet their any urgent financial requirements. The bank added that customers will continue to earn applicable rates of interest on their deposits and they can pay for the overdraft facility either in lump sum or in instalments.
Ajay Kanwal, managing director and chief executive of the bank, said as the lockdown eases, customers will 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 25 basis points over the fixed deposit rate as we think this is the need of the hour.”
To avail the facility, the minimum overdraft fixed deposit facility amount with the bank should be Rs10,000 and the deposit tenure of 180 days or more.
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First Published:14 Jun 2021, 12:47 PM IST
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