Having access to liquid funds can make all the difference when an unexpected expense arises. Instead of breaking your fixed deposit and losing out on interest, you can pledge it as collateral to get a loan against fixed deposit (FD). This option helps you unlock instant liquidity while your FD continues to earn interest, ensuring your financial plans stay on track. It’s a smart choice when you need short-term funds, want to manage an emergency, or simply prefer not to disturb your investments.
Need quick funds without breaking your savings? Apply for a loan against fixed deposit and access liquidity within hours.
Enjoy easy application and quick processing
Getting a loan against FD is simple and fast. You can apply online or offline after checking your eligibility. Once the application is submitted and verified, the loan amount is quickly processed often within a day. This makes it an excellent option for those who need emergency funds without waiting for lengthy approvals or heavy documentation.
Get access to a substantial loan amount
A loan on fixed deposit gives you access to a sizeable sum depending on your FD’s value. Generally, you can borrow up to 75% of your fixed deposit amount, depending on whether it’s cumulative or non-cumulative. For example, if your FD is worth Rs. 5 lakh, you could get a loan of up to Rs. 3.75 lakh–4.5 lakh. This flexibility helps you handle major expenses such as medical emergencies, education fees, or business requirements without breaking your savings.
Ease your repayment with a nominal interest rate
Interest rates on a loan against fixed deposit are typically lower than those on unsecured loans like personal loans or credit cards. Since the FD acts as collateral, the lender’s risk is lower resulting in better rates for you. Usually, the interest rate charged is around 2% higher than your FD rate. For instance, if your FD earns 7% interest, your loan might attract around 8–9%. Meanwhile, your FD continues to earn interest, effectively reducing the net cost of borrowing.
Avail of the loan with minimal paperwork
Since you already have an existing FD with your lender, most of your details and KYC documents are already verified. You simply need to provide your FD receipt, ECS mandate, and a cancelled cheque. This makes the application process quick and hassle-free—perfect for situations where time is crucial.
Make the most of repayment flexibility
You can repay your loan against FD over the remaining tenure of your fixed deposit. Depending on your needs, you can choose short-term or long-term repayment options. Some lenders even allow part-prepayment or foreclosure without penalties. This flexibility ensures you don’t strain your monthly budget and can clear the loan comfortably.
No hidden charges
Transparency is one of the biggest advantages of a loan against FD. You can foreclose the loan at any time during the tenure without any penalty. Since the loan is secured by your deposit, there are usually no hidden charges or extra fees. This makes it a reliable and cost-effective option when compared to traditional loans.
Conclusion
A loan against fixed deposit is a quick, affordable, and reliable way to access funds without breaking your savings. It offers fast processing, minimal paperwork, low interest rates, and flexible repayment all while your FD continues to grow in the background. So the next time you need immediate liquidity, remember that your fixed deposit can do more than just earn interest, it can also serve as your financial safety net.
Turn your FD into an active financial resource. Apply for a loan against fixed deposit today and access funds instantly!
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