Apply for a loan against your FD

A Loan Against Fixed Deposit (FD) allows individuals to borrow funds by pledging their fixed deposit as collateral. This loan is a secured borrowing option where the amount sanctioned is typically a percentage of the FD's value, often ranging between 75% to 90%. The interest rate on such loans is usually lower than unsecured loans, as the FD serves as security. Borrowers can continue earning interest on the fixed deposit even while the loan is active, and repayment terms are flexible, depending on the lender’s policies. A key advantage is that there are no penalties for prepaying the loan. Moreover, the process of availing a loan against an FD is relatively quick and hassle-free, requiring minimal documentation. It is an ideal option for those who need urgent funds without breaking their fixed deposit and losing out on interest earnings.

Get a loan against your fixed deposit

If there’s any financial emergency, instead of withdrawing your FD before its maturity, you can use it as collateral to get a loan. This facility ensures that you get funds at a low-interest rate and don’t lose on your fixed deposit.

The loan amount depends on your fixed deposit amount, while the repayment tenure can last until the FD maturity date. However, you can apply for a loan against fixed deposit, once your deposit completes three months lock-in period. You can apply online for a loan against your fixed deposit by visiting our customer portal customer service portal

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  How to apply online for a loan against fixed deposit?

  • Click on the ‘Sign-in’ button on this page to visit our customer portal.
  • Enter your registered mobile number and submit the OTP to sign-in.
  • Verify your details by sharing your date of birth and proceed.
  • Select your FD from "Your relation" against which you want to apply for a loan.
  • Click on the ‘Loan against FD’ option in the ‘Quick Actions’ section.
  • Enter the required details and review your bank account details.
  • Verify your details with the OTP sent to your registered mobile number and proceed with the loan agreement and bank details confirmation.

  
  You can also directly visit our customer portal by clicking on ‘Apply for a loan against FD’ below. Once signed-in, you’ll be redirected to the 'Relations' section. You can then select your FD, click on ‘Loan against FD’ within ‘Quick Actions’, enter the required details, and proceed.
  

  Once you complete the application process, you’ll receive the funds within 24 business hours. In case your FD has a joint account holder, they’ll also receive the OTP for verification.

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  Features and Benefits of a Loan against FD

  A Loan Against Fixed Deposit (FD) offers several features and benefits, making it a convenient option for individuals seeking quick funds without breaking their FD. Some key features include:

  • Collateral-based loan: The fixed deposit serves as security, ensuring lower interest rates compared to unsecured loans.
  • Loan amount: Typically, borrowers can avail of up to 90% of their FD’s value, depending on the bank’s policies.
  • Interest rate: The interest rate is usually 1% to 2% higher than the interest earned on the FD, making it a cost-effective borrowing solution.
  • Flexible repayment options: Borrowers can choose from different repayment tenures, usually up to the maturity period of the FD.
  • Minimal documentation: As the FD is already with the bank, the loan process is swift and requires limited paperwork.
     

  Benefits include:

  • Continued interest on FD: Even while the loan is active, the FD continues to earn interest, preserving the growth of savings.
  • No prepayment penalty: Borrowers can repay the loan early without incurring additional charges.
  • Quick disbursal: The loan is processed quickly since it is secured by the FD, making it ideal for urgent financial needs.
  • No credit check: Credit score evaluation is often not required, simplifying the approval process.
     

  Apply for a loan against FD

You can apply for a LAFD of up to 75% for a cumulative deposit. In case you have a non-cumulative deposit, you can get a loan of up to 60% of your deposit amount.