What is Loan against Fixed Deposit (FD) Repayment Tenure

Current loan against FD features and benefits include:

• Deposit remains active: You avoid premature closure while the pledged FD continues earning contracted interest.
• Defined loan rate: The applicable rate is 2% per annum above the underlying deposit rate.
• No mandatory EMI: Principal and interest may be settled anytime before maturity.
• Flexible closure: Current terms list zero foreclosure and part-prepayment charges.
• Minimal documentation: Eligible single-holder deposits can complete the online process without fresh documents.

The maximum loan against FD tenure is the remaining maturity period of the pledged deposit. The minimum available tenure is one month.

How the remaining tenure works

Suppose a 36-month FD has 14 months remaining. The loan cannot extend beyond those 14 months. You may choose a shorter period when you expect funds sooner.

What happens at maturity?

You may settle the principal and accumulated interest before maturity. No mandatory EMI or NACH instruction applies. If dues remain unpaid, the lender adjusts them against the maturity proceeds. You receive only the remaining balance.

A longer tenure does not create smaller mandatory instalments. It allows interest to accumulate longer.

The eligibility and document requirements depend on the application route.

Online application

Eligible single-holder FD customers may apply online without fresh documents because their account information is already verified.

Branch or additional verification

The following records may be requested:

• A completed loan application form
• The fixed deposit receipt
• A cancelled cheque for a non-cumulative FD

• Additional records requested during verification

  
  

Joint deposits may require an offline application and consent from every holder.

Eligible customers can use the online application process.

Step 1: Start the application

Enter the mobile number registered with your FD.

Step 2: Complete account verification

Enter the received OTP to access the customer portal.

Step 3: Select your deposit

Open “My Relations” and select the eligible FD.

Step 4: Enter the loan amount

Choose “Get a loan against FD” and enter an amount within the displayed limit.

Step 5: Review and submit

Confirm the details and bank account. Generate another OTP and submit the request.

Approved funds generally reach the FD maturity bank account within 24 hours.

For example, an FD earning 7% would carry a 9% annual loan rate under the stated margin. Interest depends on the outstanding amount and borrowing duration. Repaying earlier can reduce the total interest payable.

Review the current fees and interest terms before confirming the facility.

The loan against FD repayment tenure should match your expected cash availability and FD maturity date.

• Identify your funding date: Estimate when a confirmed inflow can support repayment.
• Calculate the interest period: Compare costs for different settlement dates instead of automatically selecting the maximum tenure.
• Protect maturity proceeds: Estimate the remaining amount if unpaid dues are adjusted at maturity.

• Borrow only what you need: A smaller outstanding balance generally produces a lower interest cost.

  
  

A longer tenure offers more time, but earlier repayment usually preserves more of the deposit’s maturity value.

FD value directly affects the eligible loan amount, but it does not independently extend the repayment tenure.

• A cumulative FD can support borrowing within the 75% limit.
• A non-cumulative FD supports borrowing within the 60% limit.
• A larger loan creates higher interest costs when the rate and borrowing period remain unchanged.
• Borrowing near the maximum limit leaves a smaller maturity balance after adjustment.
• Choosing less than the available limit can protect the original savings goal.

• Ignoring the maturity date: The facility cannot remain active beyond the pledged FD’s remaining tenure.
• Assuming mandatory EMIs: Current terms permit settlement without regular EMIs.
• Selecting the maximum period automatically: Extra borrowing time can increase accumulated interest.
• Borrowing the complete limit: The available maximum may exceed your actual requirement.
• Overlooking maturity adjustment: Unpaid dues reduce the proceeds available for your original financial goal.

Loan against FD repayment tenure starts from one month and extends only until the pledged deposit matures. The right period should reflect your repayment date, interest cost, and required maturity balance. Repaying earlier can reduce accumulated interest and preserve more FD proceeds. Unpaid dues are adjusted automatically when the deposit matures. Compare the required amount with the available limit. Choose a settlement plan supported by dependable cash flow.

Want smart borrowing without breaking your deposit? Apply for a loan against FD and choose a tenure tailored to your financial goals.