1) it is not necessary to place fixed deposit when applying for home loan 

2) they are not concerned with repayment of other loan 

3) complain to banking ombudsman of the bank and to RBI against bank forcing customers to take FD when applying for home loan 

Answers to both of your questions is firm no. The effective forum to complaint against is Consumer Forum. Under new Consumer Protection Act, 2019, there is provision under such malpractice. First issue a lawyer's notice  and then file complaint. any complaint to bank ombudsman is waste of time as he is an employee of bank.

1. Without seeing the loan agreement it is difficult to advise whether there is any breach of agreement or not. If there is breach then can file case before the consumer forum.

2. This would strengthen your case had there been violation of the terms of the agreement.

3. Yes, as advised above.

1. No, there is no direction /circular from the RBI , that an FD is required to sanction loan , hence you can lodge your compliant against that banks offering before the Ombudsmen and RBI as well. 

2. FD has nothing to do with the repayment of loan amount , if you will pay the emi .

- However, in the event of NPA, the bank can forfeit the FD after sending a notice to the borrower. 

3. No, there is no deficiency of services till date , but against the FD requirement , you can lodge your compliant as i mentioned above. 

1. There is no such necessity to have a fixed deposit with the financial institution for obtaining home loan, you have been thoroughly misguided by the bank in this regard.

You can submit an application in writing to cancel the FD and return the money, if they do not respond then you can issue a legal notice to them demanding your relief. 

2. Instead of asking this question to that bank you are posting this question here, it is very clear that they do not have any authority to interfere in your personal affairs, you give a fitting reply to them and ask them to stop indulging in such illegal activities.

3. You can take up this matter with the Banking ombudsman provided you have exhausted the remedies from the bank by sending your queries in writing and getting  a reply in writing. 

1. Have the Bank kept the FDs as collateral security against the loan provided by them? If it has not been so mentioned in the loan agreement, then you can encash the FDs standing in your name.

2. it is as per Govt, Circular. One Bank shall help other Bank to realise their outstanding.

3. You apply for encashing the FDs. If the Bank refuses or delays, you can approach the Consumer Forum.

Dear Sir/Ma'am,

Firstly,

Loan against FD (Fixed Deposit) is a type of secured loan where customers can pledge their fixed deposit as security and get a loan in return. The amount of loan depends on the FD deposit amount. This can go up to 90% – 95% of the deposit amount. 

It is further added to your knowledge that 'Loan against fixed deposit' is a secured loan where you can pledge your deposit as collateral and get a loan in return. You can get a loan amount of up to 90% of the deposit amount. A loan against FD doesn't require you to break the deposit; instead, you can get a loan against it.

Loan against FD is independent of any occupation and can be availed by salaried and self-employed. You do not need to have a good credit score to get this loan. Loan against fixed deposits are available at a lower interest rate as compared to other unsecured loans, such as personal loans. Therefore, for a loan against FD, having an FD account is necessary. 

Secondly,

When you apply for any kind of loan, lenders will have a look at your credit score before they offer you a loan. However, in the case of a loan against FD, your CIBIL or credit score will not be considered while evaluating your eligibility. Hence, such loans can be a good option for people who have low or no credit score.

Here’s a list of seven factors that would determine the approval of your submission:

• 
  Credit history: Your credit history is indicative of your future repayment behaviour, based on your pattern in settling past loans. It helps the bank to know if you will be punctual and regular with your payments. Any default or delay in the past is investigated – the longer the delay, the lower your score is likely to be. 
• 
  Work experience: Banks weigh your employment history and current engagement to ensure that your source of income is reliable. A bank wants to be certain that your employer is financially sound, with no history of outstanding or delay in paying employees their salaries. Stability of your job matters too. Therefore, government jobs have the added advantage of being perceived as safe compared to lesser known private companies or self-employment.
• 
  Age: Your age matters because it is indicative of your financially stability. You start working in your 20s and by the time you turn 30 you would have five or six years of work experience. So you are financially stable and moving up the proverbial corporate ladder with a better salary. As you progress further in the next 20 or 30-odd years you will have fewer earning years to repay your loans. Therefore, a loan application in your retirement years is likely to be rejected.
• 
  Income: As already mentioned, your income represents your repayment capacity. Banks assess your income capacity in the backdrop of existing debt obligations, dependents, source, and duration. In this context, one of the many things the bank checks is sufficient surplus after EMI payments. If this is found wanting, the bank infers that you’re spread far too thin and likely to default. However, if the ratio is five times and above, the bank will consider you financially healthy.
• 
  Repayment: If you choose a shorter repayment period, you have a better chance of getting the loan approved. Several banks favour applications for a repayment period of up to five years. As the repayment period increases in five-year slabs – 10, 15, 20, and 25 years – the score reduces. So, keeping it short is the mantra in seeking that approval from a bank for a loan.
• 
  Collateral: The collateral you provide to the bank while applying could help you secure the loan easier and sooner. As the loan amount is a percentage of the assessed value of the collateral, a high-value asset could mean more credit sanctioned for your use. The asset could be immovable (land or house) or movable (vehicle, inventory, equipment, investments, insurance policies, gold jewellery, art, and other such valuables). While Personal Loans (including credit card outstanding balance) are unsecured loans, approval for loan to purchase a car or a home, run a business, or study will not come through unless there is adequate collateral.
• 
  Margin money: Generally, banks are willing to fund up to 80% of the cost of purpose of the loan and expect the borrower to arrange for the balance. However, if you can put in more than 10-20%, the bank will not stop you. Rather, it will recognise that you are willing to reduce the bank’s exposure to the default risk and approve your application sooner. The down payment you are able to make will have a huge impact on your home, education, car, or business loan eligibility.

Therefore, to prevent any unfortunate loss to the bank, it is necessary for them check each and every detail for the person applying for loan or having a burden of loan or other liabilities. Hence, the act of checking your regular EMI payments is a procedure to be followed by the bank.