How Can I Get a Loan Against My Fixed Deposit

Eligibility to get a loan against FD

• Eligible applicants: Resident individuals above 18 years, Hindu Undivided Families, sole proprietorships, partnerships, and eligible companies may apply.
• Residency restrictions: Foreign citizens, non-resident Indians, and persons of Indian origin cannot apply.
• Deposit age: The FD must complete three months from its booking date.
• Deposit status: The FD must remain active and held with the institution providing the loan.
• Lien or attachment: A pledged deposit, or one under attachment or garnishee instructions, remains ineligible.
• Excluded deposits: Minor-held and tax-saving deposits cannot support this facility.

• Joint deposit: Joint holders must complete the applicable OTP verification during the application.

  
  

Final approval and the available amount remain subject to verification and applicable terms.

Step 1: Sign in to your account

Enter your registered mobile number on the customer portal. Submit the OTP and verify your birth date.

Step 2: Select the eligible FD

Open your financial relationships and choose the deposit you want to pledge.

Step 3: Choose the loan option

Select “Loan against FD” under quick actions. Enter an amount within the displayed limit.

Step 4: Review the loan terms

Check the 2% interest margin, tenure, bank account, and maturity adjustment conditions.

Step 5: Complete verification

Authorise the request using your OTP. Joint holders also receive an OTP for verification.

Step 6: Confirm and submit

Review the agreement and bank details before submission. Approved funds generally arrive within 24 business hours.

Before you decide, it is helpful to understand the differences between a premature FD and loan against FD to see which option saves you more on interest and penalties.

Online application

Eligible existing FD holders may apply online without fresh documents because verified details are already available.

Assisted or additional verification

Branch processing or additional verification may require these documents:

• Application form: A completed request containing loan and deposit details.
• FD receipt: The receipt or statement identifying the deposit offered as collateral.
• Cancelled cheque: Required for a non-cumulative FD under the applicable document list.

• Additional documents: Further records may be requested according to verification requirements.

  
  

Keep your mobile number and bank details updated because mismatches may delay verification or disbursal.

Pros

• Continued FD interest: The pledged deposit remains active and earns interest under the contracted terms.
• No mandatory EMIs: You may repay principal and interest anytime before maturity.
• Zero foreclosure charge: Current product terms allow early closure without a foreclosure charge.
• No annual maintenance charge: Current terms list this charge as not applicable.

• Online access: Eligible customers can apply through the customer portal using OTP verification.

  
  

Cons

• Limited loan amount: You cannot borrow the FD’s complete principal through this facility.
• Lien restriction: The pledged deposit cannot be freely withdrawn, transferred, or pledged elsewhere.
• Interest cost: Loan interest offsets part of the income earned from the FD.
• Maturity adjustment: Unpaid principal and interest reduce the amount received when the deposit matures.
• Restricted tenure: The loan cannot continue beyond the remaining FD tenure.

For a clearer understanding of the drawbacks involved, you can also review the loan against fixed deposit disadvantages before making a decision.

You can also download our app from Play Store/ App Store and apply for a loan against FD on the go using online Bajaj Finance services.

A loan against FD provides temporary liquidity while keeping an eligible deposit active after three months. The available amount depends on the deposit type. Cumulative FDs may support up to 75%, while non-cumulative FDs may support up to 60%. Review the interest margin, tenure, lien restrictions, and possible maturity adjustment. Borrow only what you can settle comfortably. Unpaid dues are deducted from the maturity proceeds. You receive the remaining balance, which may be lower than originally planned. This facility works best for short-term requirements supported by a clear repayment plan. It avoids premature closure while preserving continued interest earnings.