Fixed deposits (FDs) have long been one of the most trusted savings options. They offer predictable returns, safety of capital, and are perfect for setting aside emergency funds or long-term goals. But what happens when you need urgent money—say, for buying a home or managing a medical emergency? Many end up breaking their FD. But doing so can mean losing hard-earned interest and facing premature withdrawal penalties. A smarter alternative? Take a loan against fixed deposit.
Need funds but do not want to break your FD? Get instant liquidity while your investment keeps growing. Apply for a Loan Against FD
Let us explore how a loan against FD works, why it is often a better choice than a traditional loan, and what you need to know before applying.
Losing returns: What happens when you break your FD?
When you prematurely break your fixed deposit, you not only interrupt the compounding benefits but may also face:
Lower interest payouts
Premature withdrawal penalties
Loss of disciplined savings
And if your FD was tied to a long-term goal like home buying or child’s education, this move could set you back by months, if not years. That is why many smart savers now choose to borrow against their FD instead of dissolving it.
Keep your investment intact and still access funds Secure a loan against your FD without impacting your savings. Get started now
Loan against FD: A better option in urgent situations
Instead of losing out on your returns, a loan against fixed deposit gives you quick access to funds usually up to 75% of your cumulative FD value and around 60% for non-cumulative FDs.
This can be a game-changer when you’re:
Buying a house
Paying for education
Managing unexpected medical costs
Expanding a small business
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