On Thursday, Yes Bank announced the launch of overdraft facility against Fixed Deposits (FDs) through its digital channels - YES Mobile and YES Robot. It allows customers to avail instant OD facility on FDs from the safety and comfort of their homes in three simple steps, the bank said in a statement.
"Resident Individual customers with single holding savings account are eligible to avail of this facility for an FD of a minimum value of Rs 50,000 and a maximum value of not less than Rs 1 crore for a minimum tenure of 181 days," the bank said.
The applicable interest rate on the OD facility will be 2 percent for individuals and 1 percent for senior citizen customers while they continue to earn on their FDs for applicable rates.
There will be no EMIs and the repayment can be done in a lump sum. The lender said that it will not charge any processing fee and no additional documentation would be required.
To avail the OD facility, customers of the bank can log in into YES Robot or YES Mobile application and click on 'Pre-approved offers' or 'Exclusive Offers' to the select eligible fixed deposits, confirm the amount and submit the request. On submission of the request, the overdraft limit will be sanctioned the next day.