Loan Against FD Calculator: Estimate Your Loan Amount and Interest

A loan against FD calculator is a financial planning tool that helps you estimate how much you may be able to borrow against a fixed deposit and the interest that could accrue on the loan.

The calculation depends on factors such as the FD's principal amount, whether it is cumulative or non-cumulative, the permitted loan-to-value percentage, the applicable loan interest rate and the period for which the loan remains outstanding.

A standard EMI calculator estimates equal monthly instalments. However, Bajaj Finance’s published Loan Against Fixed Deposit facility does not require monthly EMIs. Therefore, a conventional EMI result may not represent the actual repayment arrangement for this product. It is more useful to estimate the eligible loan amount, interest cost and amount that may need to be settled by the FD maturity date.

A calculator can help you estimate your borrowing amount and interest cost using the following information.

1. Fixed deposit amount

Enter the principal amount invested in your eligible FD. The amount available as a loan depends on the type of FD and the lender’s applicable loan limit.

2. FD type

Bajaj Finance publishes different loan limits for cumulative and non-cumulative deposits:

• Cumulative FD: up to 75% of the principal amount.
• Non-cumulative FD: up to 60% of the principal amount.

These are maximum published limits, not a guarantee of approval for the full amount.

3. Loan interest rate

Check the applicable rate before calculating the interest cost. Bajaj Finance states that the loan interest rate is up to 2 percentage points per annum above the underlying FD rate.

For example, if the applicable FD rate is 7% per annum and the loan rate is 2 percentage points higher, the loan rate would be 9% per annum.

4. Period for which the loan remains outstanding

Estimate how long you expect to keep the loan outstanding. The interest cost depends on the outstanding amount, the applicable rate and the calculation method specified by the lender.

For Bajaj Finance, the loan tenure cannot extend beyond the remaining tenure of the FD. Confirm the exact interest calculation and settlement terms before applying.

Want clarity before you borrow? Try the loan against fixed deposit EMI calculator

You can estimate the maximum eligible loan amount by multiplying the FD principal by the applicable loan-to-value (LTV) percentage.

Formula:

Maximum estimated loan amount = FD principal × applicable LTV percentage

For example, suppose an eligible cumulative FD has a principal amount of Rs. 1,00,000.

These figures are illustrative estimates based on the published maximum percentages. The actual sanctioned amount depends on the deposit and the lender's eligibility conditions.

Find out more in detail about loan against FD.

The interest payable depends on the amount borrowed, the applicable loan rate, the time the amount remains outstanding and the lender’s calculation method.

For a simple-interest illustration, the formula is:

Interest = Principal borrowed × Annual interest rate × Time in years

Suppose a borrower takes Rs. 75,000 against an eligible FD at an illustrative rate of 9% per annum and keeps the loan outstanding for six months.

• Principal borrowed: Rs. 75,000
• Annual loan interest rate: 9%
• Period: 6 months, or 0.5 years

Estimated interest:

Rs. 75,000 × 9% × 0.5 = Rs. 3,375

The illustrative total of principal and interest would be Rs. 78,375, before any applicable adjustments or other amounts under the loan terms.

This example assumes simple interest on the full principal for six months. It is not a loan quotation. The actual amount may differ based on the lender’s prescribed interest calculation, the disbursal date, any repayment made during the period and the applicable terms.

No. According to Bajaj Finance’s published Loan Against Fixed Deposit information, borrowers are not required to pay monthly EMIs under this facility.

The borrower can repay the loan and interest before the FD maturity date. If the amount remains outstanding at maturity, the loan and applicable interest are adjusted against the maturity proceeds according to the product terms.

This is an important distinction when using a calculator. A standard EMI formula assumes monthly instalments that gradually repay the principal and interest. It should not be used to represent the actual repayment schedule of a facility that does not require monthly EMIs.

Before borrowing, consider how you will settle the outstanding amount and whether the maturity proceeds will be sufficient after the adjustment.

Several factors influence the amount you can borrow and the interest that may accrue.

FD principal

A higher eligible FD principal may support a larger loan, subject to the lender’s maximum LTV and other conditions.

Type of FD

The maximum published loan percentage differs between cumulative and non-cumulative deposits. Check the terms applicable to your FD type.

Interest rate

The loan rate affects the cost of keeping the borrowed amount outstanding. Use the rate confirmed by the lender rather than an assumed or outdated figure.

Duration of borrowing

A longer period of borrowing generally results in more interest accruing, assuming the principal and interest rate remain unchanged.

Remaining FD tenure

The loan tenure is linked to the FD’s remaining maturity period. A deposit nearing maturity may therefore limit the period for which the loan can remain outstanding.

Eligibility and restrictions

The maximum amount estimated by a calculator does not guarantee approval. The deposit must meet the lender’s requirements and must not be subject to restrictions that prevent it from being pledged.

A calculator can support financial planning before you apply.

• Estimate borrowing capacity: Understand the maximum amount that may be available against your FD.
• Estimate interest cost: Assess the approximate interest for a selected borrowing amount and period.
• Compare scenarios: Check how the estimated cost changes if you borrow less or repay sooner.
• Plan the maturity settlement: Estimate how much may need to be repaid before maturity and how much could be adjusted against the FD proceeds if left outstanding.
• Make an informed decision: Compare borrowing against the FD with other available ways of meeting the expense.

The estimates are for planning purposes. Review the lender’s final offer and terms before deciding whether to proceed.

Existing eligible customers can apply through the Bajaj Finance customer portal, My Account, subject to the applicable conditions.

The published online process generally involves:

1. Visit the official Loan Against Fixed Deposit page.
2. Sign in to My Account using your registered mobile number and OTP.
3. Open the relevant FD under the account’s deposit details.
4. Select the option to apply for a loan against the eligible FD.
5. Enter the amount you want to borrow.
6. Verify the details and complete the required OTP authentication.
7. Follow the instructions provided to complete the application.

The process may differ for deposits with more than one holder or applications that need to be completed through a branch. Check the current eligibility criteria and application instructions before proceeding.

A loan against an FD provides access to funds without requiring immediate premature withdrawal of the deposit. However, the FD is pledged as security, and the outstanding loan can affect the proceeds available to you at maturity.

Before applying, check:

• The amount you are eligible to borrow.
• The loan interest rate and calculation method.
• The remaining FD tenure.
• Whether your deposit meets the eligibility requirements.
• The process for repaying the loan before maturity.
• How an outstanding amount will be adjusted against the FD proceeds.
• Any applicable charges or conditions stated in the final loan documents.

Borrow only an amount that fits your requirements, and consider how you will settle the loan before the FD matures.

A loan against FD calculator can help estimate how much you may be able to borrow and the interest that could accrue while the loan remains outstanding. For Bajaj Finance’s facility, remember that the published repayment arrangement does not require monthly EMIs; the loan and interest can be settled before the FD matures or adjusted against its maturity proceeds. Confirm the eligible loan amount, interest rate, tenure and settlement terms before applying, and use the estimates as a planning aid rather than a guarantee of approval or final cost.