1 min read
31-May-2025

Have a fixed deposit but facing an immediate cash crunch? Instead of prematurely withdrawing your FD and losing out on returns, there’s a smarter solution loan against FD.

Why disrupt your savings when you can borrow against them?

Fixed Deposits are meant for long-term growth. But life often throws unexpected expenses our way be it medical emergencies, home repairs, or travel plans. In such times, breaking your FD may seem like the only option, but it doesn’t have to be.

With a loan against FD, you can access quick funds without disturbing your investment. Your deposit continues to earn interest, and you get the money you need.

Turn your FD into instant funds without breaking it. Get up to 75% of your deposit value as a loan, disbursed in just 24 hours. Apply for a Loan Against FD

What is a Loan Against FD?

Think of it as borrowing from your future without any loss. A loan against fixed deposit is a secured loan where your FD acts as collateral. Instead of withdrawing your deposit, you pledge it and receive a loan typically up to 75% of the FD value, depending on your FD type.

Unlock up to 75% of your FD value instantly without any break in returns.

And here’s the best part interest rates are generally 2% over the underlying deposit rate, which is much lower than most personal loans or credit cards.

How to avail of a Loan Against FD?

Bajaj Finance has made availing of a Loan Against FD smoother than ever. Whether you’re in the comfort of your home or prefer walking into a branch, the process is designed to be fast, intuitive, and completely hassle-free.

Here’s how you can apply online in just a few simple steps:

  1. Head over to the Bajaj Finance website and click on the ‘Apply’ button.
  2. Enter your mobile number and verify it using the OTP sent to you.
  3. You’ll be redirected to the My Account customer portal.
  4. Under the “My Relations” tab, select the FD you wish to pledge.
  5. Click on “Get a Loan Against FD” under the Quick Actions section.
  6. Enter the loan amount you require.
  7. Click on “Generate OTP”, and then submit your application.

That’s it! Your application will be processed immediately, and funds will be disbursed—usually within 24–48 hours• .

Need funds fast? Apply online and get money in your account fast. Apply now

Loan Against Shares
Loan Against Mutual Funds

What are the eligibility criteria to apply for a loan against FD?

Wondering if you're eligible for a loan against FD? Here's a quick breakdown of who can apply:

  • Resident individuals: You must be a resident of India and over 18 years of age. Please note, this facility is not extended to NRIs, PIOs, or foreign nationals.
  • Hindu Undivided Families (HUFs): HUFs families with a shared lineage and financial interest can apply with ease.
  • Sole proprietorships: Running your own business? If you operate as a sole proprietor, you’re eligible.
  • Partnership firms: If your business is a partnership, you can easily access this facility.
  • Clubs, societies, and associations: Registered societies and associations can also apply to meet their financial needs without breaking their FDs.

Whether you are managing personal expenses or running a business, a Loan Against FD gives you instant liquidity without breaking your investment. Apply now

Interest rates and loan amount

With a Loan Against FD, you get to borrow at highly competitive interest rates—only 2% above your FD interest rate.

  • Cumulative FD: Get a loan of up to 75% of your FD value.
  • Non-cumulative FD: Borrow up to 60% of your FD value.

This makes it one of the most cost-effective ways to get cash without compromising your savings.

How much can be availed of as a loan by pledging your FD?

The amount you can borrow depends on your FD type:

  • Cumulative FD: Up to 75% of the deposit can be availed as a loan.
  • Non-cumulative FD: You can borrow up to 60% of your total investment.

How soon can you receive funds, and what is the cost of borrowing?

Time-sensitive needs? This loan has you covered. Once approved, your loan is typically disbursed within 24 hours and sent directly to your bank account.

The cost? Just 2% above your FD rate, keeping it far more affordable than most unsecured loans.

From application to disbursal, all in a day. Get the funds you need, when you need them. Apply now

Repayment of the loan against FD Bajaj Finance

Repayment is straightforward and flexible—tailored to match your needs:

  • Interest payments: Typically adjusted against the interest your FD earns. You can choose monthly, quarterly, or annual frequency.
  • Principal repayment: Repay in one go at the end of the tenure or opt for EMIs.
  • Tenure: The loan term usually aligns with your FD’s maturity date.
  • Premature FD withdrawal: In case you break your FD early, your outstanding loan gets settled from the maturity amount.
  • Loan renewal: Planning to renew your FD? You might be able to renew the loan as well—based on eligibility and approval.

Features and benefits of loan against fixed deposit

Here’s why this offering stands out:

1. Flexible loan amount

  • Borrow up to 75% of your cumulative FD
  • Up to 60% for non-cumulative FD
  • Minimum loan value: Just Rs. 3,000

2. No mandatory EMI

You don’t need to pay regular EMIs. Repay when it’s convenient—before your FD matures.

3. Zero foreclosure charges

Close your loan whenever you want—no extra fees, no questions asked.

4. Competitive interest rates

Interest rates are just 2% above your FD rate, making it a far more viable option than unsecured credit.

5. Tenure flexibility

Choose a loan term starting from 1 month and going up to the maturity of your FD.

6. My Account portal access

Track your loan, check balances, download statements, and more 24/7, from anywhere.

How to apply online for a loan against fixed deposit?

Getting started is easy. You can apply online or visit your nearest Bajaj Finance FD branch.

To apply online:

  1. Initiate your application: Click the ‘Apply’ button on the Bajaj Finance website.
  2. Sign in: Enter your mobile number and click ‘GET OTP’.
  3. Verify OTP: Once validated, you’ll be redirected to ‘My Account’.
  4. Select your FD: Under “My Relations”, choose the FD you wish to borrow against.
  5. Quick action: Click on “Get a loan against FD”.
  6. Enter loan amount: Specify the desired amount.
  7. Generate and verify OTP again to confirm your request.
  8. Submit: That’s it! Your application is under process.

Once done, a Bajaj Finance representative may reach out for any follow-ups.

No branch visits, no long waits just a few clicks to avail your funds online. Apply now

What is the tenor that you can avail of a loan against FD for?

The loan tenure can be anywhere between 1 month to the remaining maturity of your FD. You can apply for the loan after 3 months of starting your fixed deposit.

And here’s the kicker your FD continues to earn interest even while it's pledged as collateral.

Why choose a loan against FD?

Whether it’s a personal need, a business opportunity, or an unexpected emergency, a loan against FD helps you access instant liquidity while letting your investment stay intact and earn returns.

  • No need to break your FD
  • Quick approvals and fast disbursals
  • Flexible repayment options
  • Low interest rates
  • No prepayment penalties

Don’t break your fixed deposit. Bend them to your will. Get a Loan Against FD today and handle your finances well. Apply today

Conclusion

A loan against FD is one of the smartest ways to unlock liquidity without disturbing your long-term savings. Whether you’re facing a sudden expense, funding a short-term goal, or just want a backup for emergencies this option gives you the best of both worlds: quick funds and continued returns on your deposit. With no EMIs, no foreclosure charges, and instant approval, Bajaj Finance makes the entire borrowing experience seamless. Add to that flexible tenures, competitive interest rates, and the convenience of online application and you have got a solution that works with your financial goals, not against them.

Need funds urgently but don’t want to break your FD? Get a loan against your FD in just a few clicks. Apply now

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You can use the Bajaj Finserv App to:

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Frequently asked questions

What is a loan against FD?

A Loan Against FD is a type of loan where you use your fixed deposit as collateral to borrow money from a bank or financial institution.

Can I still earn interest on my FD while it's pledged for a loan?

Yes, you can still earn interest on your FD while it's pledged as collateral for the loan.

Can I get a loan against FD online?

Yes, Bajaj Finance Limited offers the option to apply for a loan against FD online, simplifying the application process for borrowers.

How do I repay a loan taken against FD?

The repayment tenure for a loan against FD varies among banks and financial institutions; but is usually short-term, ranging from a few months to a few years. The exact duration depends on the lender's policies and your agreement with them.

How much loan can one get a loan against FD?

Customers can use their fixed deposit as security for a loan against their FD (Fixed Deposit), which is a sort of secured loan. The amount of the FD deposit determines the loan's amount. This may equal as much as 75% of the deposit sum.

What Documentation Required to Avail Loan Against Fixed Deposit (FD)

Loan against fixed deposit can be availed after completion of 3 months from the date of deposit with Bajaj Finance. The applicant must fall into one of the following types. No documents are required for applying online LAFD.

What are the interest rates for a loan against FD?

The interest rate on a loan against FD is typically 1-2% higher than the FD interest rate. It varies based on the lender’s terms and your deposit amount.

Can I take a loan against FD without a credit check?

Yes, a loan against FD usually does not require a credit check since it is a secured loan, backed by your fixed deposit as collateral.

What happens if I default on a loan against FD?

If you default, the lender can liquidate your FD to recover the outstanding amount, including interest and penalties, as per the loan agreement terms.

Who is eligible for a loan against FD?

Both individuals and businesses holding a fixed deposit with Bajaj Finance are eligible. The FD must be active and not nearing maturity, and the loan is available only against non-tax-saving FDs.

What is the tenure of a loan against FD?

The loan tenure is linked to your FD’s maturity. You can avail the loan for up to the remaining term of your fixed deposit, subject to the lender’s terms and conditions.

Will taking a loan against my FD affect its maturity value?

No, your FD continues to earn interest as usual. The principal and interest remain unaffected, provided you repay the loan on time and do not break the deposit prematurely

Can I pre-close my loan against FD?

Yes, you can pre-close the loan any time before the FD matures. Once you repay the outstanding amount, the lien on your FD is removed, and you regain full access to it.

Should I break my FD or take a loan against it?

Taking a loan against your FD is a better alternative to breaking it. You can meet your immediate financial needs without losing out on the interest earnings from your fixed deposit.

Is a loan against FD better than a personal loan?

Yes, since it's a secured loan, interest rates are lower than personal loans. Approval is quicker, there's minimal documentation, and you don’t need to liquidate your investment for short-term cash needs.

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