Manage your loan against fixed deposit

A loan on fixed deposit lets you use your FD as collateral to borrow funds. You continue to earn interest on your deposit while repaying the loan at a slightly higher rate. This makes it one of the most affordable and convenient ways to handle short-term financial needs.

Unlike unsecured loans, your FD-backed loan does not require lengthy paperwork or a high credit score, making it a preferred choice for instant liquidity.

Keeping track of your loan against fixed deposit is simple with most financial institutions offering an online portal. Here is how you can manage it conveniently:

Sign into “Account” by visiting our website and clicking on the ‘Sign-in’ button or by using the app.

Enter your mobile number and the OTP received on your registered mobile number.

Once you have signed in, you will be directed to your dashboard, where you can track your loan details, including the outstanding amount, interest rate, and other related information.

You can also download your Statement of Account and other related documents with just a few clicks.

If you wish to close your loan account before its maturity date, raise a service request online or visit any of the branches to foreclose your loan.

Using an EMI calculator is straightforward but understanding the underlying process can help in appreciating its utility.

• Input loan details: Start by entering the principal loan amount, the interest rate, and the loan tenure into the calculator. These are the primary variables that influence the EMI calculation.
• Calculation formula: The calculator uses the standard EMI formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is the principal amount, R is the monthly interest rate, and N is the number of instalments. This formula accounts for the interest rate's compounding effect over the loan tenure.
• Processing: Once the details are entered, the calculator processes these inputs using the formula to compute the monthly EMI. This step involves mathematical operations that are quickly handled by the calculator’s algorithm.
• Output: The calculator then displays the monthly EMI amount. Additionally, it often provides a detailed breakdown of the total interest payable and the overall repayment amount. This output gives a clear picture of the loan’s financial impact.

Find out more in detail about loan against FD.

Using an EMI calculator is an essential step in loan planning, offering accurate and quick estimations of monthly payments. It aids in comparing different loan options, understanding the impact of various factors on EMIs, and planning your finances more effectively. Whether you're considering a loan against FD or any other type of loan, an EMI calculator can help you make informed decisions, ensuring that your loan fits well within your financial capabilities. By leveraging the benefits of an EMI calculator, borrowers can achieve better financial management, avoid defaults, and ensure a smooth loan repayment journey.