State Bank of India on Tuesday launched an online facility for Overdraft against Fixed Deposit, whereby customers holding fixed deposits in a single name can avail of up to 90 per cent of the FD amount as an overdraft to meet emergency and other needs.
As an introductory offer, SBI is charging an interest rate of only 0.5 per cent more than the linked FD. This is among the lowest in industry.
While the core product has been available at SBI branches for a while now, the online facility is part of SBI’s endeavour to take products and services onto the digital platform, SBI said in a statement.
The OD is created instantly without the need to visit a branch.
This facility is now available to all Internet banking users through the OnlineSBI portal. In the coming days, it will also be extended to the State Bank Anywhere mobile app.