Overdraft Against Fixed Deposit

An overdraft against a fixed deposit (FD) is a credit facility where a bank lets you borrow against your FD—usually up to 75–90% of its value. You continue earning interest on the FD, while paying interest only on the amount withdrawn.

It’s a popular fallback option for quick liquidity, but it comes with caveats like interest costs and lien on your FD.

Note: Bajaj Finance does not offer overdraft against FD. Instead, you can explore flexible FD options with high interest rates and liquidity features.

• You pledge your FD as collateral with the issuing bank.
• The bank sanctions an overdraft limit—usually up to 90% of the FD value.
• You can use this amount partially or fully and repay anytime before FD maturity.
• Interest is charged only on the withdrawn amount—not the full limit.

This setup offers more flexibility than a personal loan, but also locks your FD from premature withdrawal.

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However, these advantages are only applicable with institutions that offer this facility—not all NBFCs or banks support it.

• FD must be with the same bank offering the overdraft.
• Minimum FD value as per bank policy (e.g., Rs. 25,000 or Rs. 1 lakh).
• The FD must not be under lien already.
• Available to individual and joint FD holders.
• Minors can’t apply directly.

Approval is typically fast, especially if your FD is already active with the bank.

Looking for secure growth without any liens or lock-ins?
Invest in a Bajaj Finance FD—no pledging, no strings. Just high interest (up to 7.30% p.a.) and guaranteed returns. Start investing.

While overdrafts offer liquidity, they also come with risks:

• Your FD gets locked—you can't withdraw or break it until the loan is repaid.
• Interest costs can pile up if not managed carefully.
• Non-repayment can affect your credit score.
• If not repaid, your FD may be prematurely adjusted by the bank.

In short, it's not a “free liquidity” option—it’s a loan, and it should be treated as such.

Want liquidity without loans?
Bajaj Finance FDs offer flexible payout options (monthly, quarterly, half-yearly, yearly and annually) and online premature withdrawal features. Open FD.

Overdraft vs Personal loan vs Smart FD planning

Why complicate with loans or liens?
Lock in your money with a Bajaj Finance Fixed Deposit and earn attractive, guaranteed returns. Invest now! Start with just Rs. 15,000.

While overdraft against FD can be a useful liquidity tool for some, it's not the only or best solution for everyone. Interest adds up, your FD is locked, and it still counts as a loan.

If you're looking for high returns, capital protection, and flexibility—without the complexity of pledging or borrowing—a Bajaj Finance FD is a smarter, cleaner alternative. 

It’s simple: invest, earn, and withdraw when needed. No loans. No stress. Invest now!