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Bank of Maharashtra (BoM) has launched an overdraft facility (OD) against fixed deposits (FDs) for its individual customers holding a savings bank account.
Under this facility, up to 90 per cent of the FD value can be availed as OD. The interest rate on this facility will be 2 percentage points over and above the FD rate.
BoM, in a statement, said it has launched the OD against FD facility to support customers amid the pandemic.
Customers can avail this facility without having to liquidate the FD Receipt, it added. The public sector bank underscored that customers will continue to earn applicable rates of interest on their FDs. Customers can make the payment for the OD facility in lump sum. Hence, they will not be burdened with Equated Monthly Instalment payments.
The bank has also decided not to charge any processing fee. Additional documentation is not required to avail this facility.
“The OD facility can be availed from the comfort of home in three simple steps using Bank of Maharashtra’s Mahamobile App,” the bank said.
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