Features and benefits of our loan against fixed deposit
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How to choose the right tenure
Learn how to choose the right FD tenure options based on your financial goals, and get tips for selecting the best FD tenure for maximum returns.
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Loan of up to 75% of deposit value
Get loan against your fixed deposit up to 75% of deposit value. Minimum loan value of Rs. 3000.
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No need to pay any EMI
After availing the loan, the borrower need not pay any EMI. The loan amount, and loan against FD interest rate, can be paid any time before the maturity date. If the amount is not paid by then, it will be adjusted from the maturity proceeds of the FD. NACH is not required.
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Zero foreclosure charges
No foreclosure charges applicable. You can visit any BFL branch for foreclosure of your loan.
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LAFD at interest rate of 2% p.a. over the underlying deposit rate
LAFD as interest rate of 2% p.a. over the underlying deposit rate.
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Flexible tenure option
Get loan of minimum 1 month. The loan is available for a flexible tenure of 1 month to the tenure of your deposit.
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Dedicated customer portal (My Account)
Download your loan statement and manage your loan online with our customer portal – My Account.
Offline loan through branches
You can visit the Bajaj Finance Limited branches and get loan of more than Rs. 4 Lakh per deposit.
How to apply for a loan against FD – Watch the video tutorial
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How to apply for a loan against fixed deposit
Watch this video to learn how you can apply for a loan against fixed deposit with Bajaj Finance Limited
Step-by-step guide to apply for loan against fixed deposit
- Step 1: Click on ‘Apply’ to initiate your application.
- Step 2: Enter your mobile number to Sign in and click ‘GET OTP’.
- Step 3: Enter the OTP sent to your mobile number. On successful verification, you will be redirected to our customer service portal - My Account.
- Step 4: Under “My Relations”, click on “View Details” below the deposit against which you wish to apply for a loan
- Step 5: Click on “Get a loan against FD” under “Quick Actions”
- Step 6: Enter the amount of loan you wish to avail
- Step 7: Click on “Generate OTP”
- Step 8: Enter the OTP sent to your mobile number and click “Submit”
Additionally, customer can visit our FD branches and apply LAFD Once your application form is submitted, our representative will get in touch with your further proceedings. The final loan amount shall be calculated basis your investment amount in the fixed deposit.
Frequently asked questions
A loan against fixed deposit is a type of loan offered by banks and financial institutions, where a borrower can pledge their fixed deposit as collateral to obtain a loan. Here are some of the features of a loan against fixed deposit:
- No EMI
- Zero foreclosure charges
- Competitive interest rate
- Flexible tenure option
- Higher loan offline through BFL branches
A loan against fixed deposit is a type of loan that allows individuals to borrow money by pledging their fixed deposit as collateral. Here are some benefits of taking a loan against fixed deposit:
- Lower interest rates: Since the loan is secured, lenders usually offer lower interest rates compared to unsecured loans. The interest rate is up to 2% p.a. over the underlying deposit rate.
- There is no need to prematurely withdraw and break the FD.
- There are no processing costs.
- No EMI is required; the loan amount and all interest owing will be deducted from the FD maturity income.
- Multipurpose use: The funds obtained through a loan against fixed deposit can be used for various purposes like funding a business, purchasing a property, financing education, medical expenses, etc.
The interest rate is usually slightly higher than the FD’s interest rate, often by 2%. Since the loan is secured against your deposit, rates are lower than personal loans and remain relatively stable.
Charges are minimal and typically include a small processing fee and applicable taxes. There are usually no heavy documentation costs, and many lenders do not levy prepayment or foreclosure penalties.
Yes, senior citizens can easily apply for a loan against their fixed deposit. Age is generally not a restriction since the loan is secured, and the FD itself acts as the primary collateral.
Yes, many banks allow you to apply for a loan against FD through internet or mobile banking. The process is quick, paperless, and often enables instant loan approval and disbursal.
Typically, you can borrow up to 75% of the FD value, depending on the bank’s policy. The exact loan amount depends on the deposit amount, tenure, and interest payout structure.
The loan tenure usually matches the remaining tenure of the fixed deposit. In some cases, lenders may allow shorter tenures, but repayment must be completed before or at FD maturity.
The loan amount received is not taxable, as it is borrowed money. However, interest earned on the fixed deposit remains taxable as per your income tax slab, even during the loan period.
No, your FD continues to earn interest as usual. However, you will pay interest on the loan, which is slightly higher than the FD rate, resulting in a small net interest cost.
