Federal Bank has launched an innovative loan product, Fed Rise. The facility offers enormous operational comfort and flexibility to the customers. It is basically an overdraft facility against recurring deposits. At the time of opening of a recurring deposit, 90% of the maturity value of the RD is sanctioned simultaneously as an overdraft limit. Then at any point of time, 90% of the balance (inclusive of interest) in the RD can be drawn by the customer for his/her needs. As the customer makes payment to the recurring deposit account, the drawing power rises. When a purchase is made, or a bill payment or an ATM withdrawal is done, if there is a shortfall of funds in the saving bank account, the system automatically pulls out the deficit amount from the overdraft account subject to the funds position, the bank said, adding that the withdrawals can be repaid conveniently as preferred by the customer. As the facility is sanctioned at the time of opening of RD itself, there is no need for the customer to visit the bank for availing the limit in between. The amount can be withdrawn using debit card, POS, Net banking, mobile banking making it a 24/7 digital product.
