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Overdraft Against NRI Fixed Deposits: Interest Rates & Key Benefits Explained
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Yes, as an NRI, you can apply through your Kotak Relationship Manager.
The Overdraft must be repaid or renewed alongside the deposit. In some cases, the Overdraft can be adjusted against the maturity amount.
Absolutely. Kotak does not charge any prepayment penalty, giving you full flexibility.
It depends on your needs. Overdrafts allow flexible withdrawals, and interest is charged only on the utilized amount.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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As an NRI, you may occasionally need quick access to funds—be it for a family emergency, a business opportunity, or educational expenses. Instead of breaking your fixed deposit (FD) and losing out on interest earnings, you can opt for an overdraft against your NRI fixed deposit. This facility allows you to borrow against your savings while your deposit continues to grow.
Overdrafts against NRI FDs are a smart way to unlock liquidity without disturbing your long-term plans. They offer quick processing and flexibility, making them a preferred option for many NRIs looking to manage cash flow efficiently.
Here's what this article covers:
Key Features of Overdrafts against Fixed Deposits
Types of NRI Fixed Deposits You Can Leverage
You can use your NRE, NRO, or FCNR fixed deposits as collateral to avail an overdraft facility, giving you access to funds without disturbing your savings.
Please note: Overdrafts can only be availed on Fixed Deposits of ₹50,000 or more (equivalent FCY amount for FCNR deposits).
Here’s a snapshot of the different types of NRI fixed deposits and their key features:
Deposit Type
Currency
Key Feature
NRE FD
INR
Earns tax-free interest; auto-renewable
NRO FD
INR
Can be jointly open with a Resident Indian
FCNR (B)
USD, GBP, EUR, AUD, SGD
Held in foreign currency; protected from forex fluctuations
Things to Remember Before You Avail the Overdraft
While the Overdraft facility offers convenience and low rates, there are a few pointers to keep in mind:
Ensure the Overdraft purpose aligns with the bank’s permissible usage policies.
Final Word
You are now well aware of the numerous benefits that come with Overdrafts against NRI fixed deposits. This facility gives you liquidity without compromising your long-term savings, with:
Kotak Mahindra Bank has attractive FD rates, a simple application process, and flexible Overdraft terms. So, NRIs can enjoy both growth and convenience.
Ready to make your fixed deposit work harder for you? Contact your Relationship Manager to apply for an OD against FD with Kotak today!
This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Mutual Fund investments are subject to market risks read all scheme related documents carefully before investing.
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