• Loan against Fixed Deposit

    You can avail loan against your Fixed Deposit (FD) if your credit score is low, you do not meet the income eligibility criteria, or if you have no other assets to pledge for a secured loan. The interest rate on such loans range between 1% and 2% above the FD rate and can be repaid in up to 60 months. These loans are usually given in the form of an overdraft or demand loan.

    Top Banks Offering Loan Against Fixed Deposit

    Name of the Bank Interest Rate Repayment Tenure Loan Amount
    Axis Bank 2% above term deposit rate - Rs.25,000 onwards
    State Bank of India 1% above the relative time deposit rate 6 months to 5 years Rs.25,000 to Rs.5 crore
    HDFC Bank 2% above the FD rate 6 months onwards Rs.25,000 onwards
    Federal Bank 2% above the FD rate - Up to 90% of the deposit amount
    Karur Vysya Bank 5% to 7% - Up to 90% of the deposit amount
    Deutsche Bank 2% above the FD rate 7 days to 365 days Rs.25,000 onwards

    Axis Bank Loan Against Fixed Deposit – Features

    • Loans are given in the form of overdraft
    • No prepayment charges
    • Up to 85% of your fixed deposit can be availed as loan
    • No penalty for premature closure
    Penal Interest Rate Cheque Book Issuance Charges Cash Deposit Charges Duplicate Account Statement
    24% p.a., 2% per month plus GST Rs.100 plus GST Rs.3 per Rs.1,000 plus GST Rs.100 per statement plus GST

    SBI Loan Against Fixed Deposit – Features

    • You can avail loan of up to 90% of the value of your fixed deposit
    • Loans are available in the form of overdraft and demand loan
    • No penalty for prepayment
    • Loans can be availed through internet banking or through any branch of the bank
    Processing Fee Prepayment Charges Margin Repayment Period
    Nil Nil Up to 90% of the value of FD 3 years to 5 years

    HDFC Bank Loan Against Fixed Deposit – Features

    • Option to choose between a current account and savings account to link to your FD
    • Loan available in the form of overdraft
    • Interest will be charged only on the withdrawn amount while the remaining FD will continue to accrue interest
    • Retired personnel and senior citizens who live in India are entitled to senior citizen rates on the FDs
    Loan Amount Minimum Repayment Tenure Interest Rate Prepayment Charges
    Up to 90% of overdraft on your FD 6 months 2% above the FD rate -

    Federal Bank Loan Against Fixed Deposit – Features

    • No processing fee or penal interest charged
    • Loan can be availed against FDs, Recurring Deposits (RDs), and cash certificate
    • Loans can be obtained from any branch of Federal Bank
    • Only the deposits that are free from restraint, lien, or encumbrance will be eligible for loans
    Loan Margin Penal Interest Processing Fee Prepayment Charges
    Up to 90% of the FD amount Nil Nil -

    Karur Vysya Bank Loan Against FD – Features

    • Quick loan disbursals
    • Loans can be availed against any type of deposit including fixed deposits
    • Loans of up to 90% of the deposit amount can be availed
    • Original deposit receipt needs to be submitted to avail a loan against FD
    Loan Amount Processing Fee Prepayment Penal Interest
    Up to 90% of the deposit amount - - -

    Deutsche Bank Loan Against FD - Features

    • Besides your own FD, you can avail loan against FDs held by any of your family members
    • The interest on the loans are charged only on the utilised amount
    • Competitive interest rates
    • Loans up to 95% of your FD can be availed.
    Minimum Overdraft Amount Repayment Tenure Service Tax Overdrawing of Facility Limit Stamp Duty Charges
    Rs.25,000 7 days to 365 days As applicable 24% p.a. on the overdrawn amount Depends on local regulations

    Eligibility Criteria for Availing Loan Against Fixed Deposit

    To be eligible for a loan against FD, the basic criteria is that you must hold a fixed deposit with the bank you are availing the loan from and any of below-given individuals/entities can avail the loan:

    • Resident Indian citizens
    • Family Trusts
    • Hindu Undivided Family (HUF)
    • Clubs, societies, and associations
    • Sole proprietorships, group companies, and partnership firms

    Documentation Required to Avail Loan Against Fixed Deposit

    To avail a loan against fixed deposit, you will need to provide the below-given documents:

    • Application form duly signed
    • Duly signed agreement
    • Fixed/Term Deposit receipts duly discharged in favor of the bank

    Please note that these may vary from lender to lender.

    How to Obtain Loan Against Fixed Deposit

    Most lenders allow you to avail a loan against fixed deposit online except in few cases where you will need to visit the nearest branch of the bank. Some of the banks that offer the facility of availing a loan against fixed deposit online through their respective websites are the State Bank of India, HDFC Bank, Axis Bank, and Deutsche Bank. In the case of Federal Bank, you will need to visit the nearest branch of the bank.

    Features and Benefits of Loan Against Fixed Deposit

    • Lower interest rates – Since your fixed deposit acts as a security for a loan, the interest rate charged on these loans are lower. The interest rates on these loans are usually lower than the interest rates on personal loans by about 2% to 2.5%. Hence, the equated monthly instalments (EMIs) on these loans are also lower.
    • Minimal paperwork – Since banks already have your details which you furnished during the opening of your FD, the documentation required for availing the loan against your FD will be minimal. You will not be required to submit documents such as your proof of income, Income Tax Returns (ITR), etc.
    • No credit score check – When you apply for any kind of loan, lenders will have a look at your credit score before they offer you a loan. However, in the case of a loan against FD, your CIBIL or credit score will not be considered while evaluating your eligibility. Hence, such loans can be a good option for people who have low or no credit score.
    • The loan amount will depend on the FD amount – If you have to avail a personal loan, the maximum loan amount that you can avail will depend on various factors such as your credit score, income, tenure, etc. However, in the case of loan against FD, the maximum loan amount will depend on the money you have invested in the FD account. This means that if you have invested a higher amount in your FD, you will be eligible for a higher loan amount.
    • No prepayment penalty – When you prepay any loan, the banks lose out on the interest and hence, they will charge you a penalty for the same. However, in the case of a loan against FD, no penalty is charged as banks do not lose out on the interest amount. Instead, they profit from it as they do not have to pay you any interest on the loan amount.

    FAQs on Loan Against Fixed Deposit

    1. Can I get a loan against my FCNR deposit?

    Answer: Yes, you can obtain a loan against your Foreign Currency Non-Resident Account (FCNR) deposit from banks such as HDFC Bank, ICICI Bank, etc. Loans can also be availed against your NRE and NRO deposits.

    2. What happens if I am unable to pay the EMIs towards my loan availed against my FD?

    Answer: In instances where you fail to pay the EMIs, the bank will use the amount in your FD to adjust the payment against your loan availed.

    3. Can minors avail loan against fixed deposits?

    Answer: No. To avail loan against a fixed deposit, you need to be at least 18 years of age and hold a valid fixed deposit.

    4. I have availed a loan against my FD. Is it possible to close my FD before my loan tenure ends?

    Answer: You are not allowed to close your fixed deposit if there is an outstanding overdraft against it.

    5. I want to avail a demand loan against my FD from SBI. Can I do it online?

    Answer: Unfortunately, no. At the moment, SBI allows online facility only for overdrafts. If you wish to avail a demand loan, you will have to visit the nearest branch of SBI.

    6. My husband and I hold a joint account in SBI. Can we avail the overdraft facility against our FD?

    Answer: Yes, joint account holders can avail the overdraft facility against fixed deposit by visiting the nearest SBI branch.

    7. I hold an NRO deposit in ICICI Bank. How do I repay the loan I have availed against my deposit?

    Answer: The repayment for the loan availed against your NRO deposit from ICICI Bank can be made by adjusting the FD or making fresh remittances through the usual banking channels, from outside India. Repayment can also be made out of the funds in your NRO account.

    8. What is the minimum loan amount that I can avail from SBI against my FD as an overdraft?

    Answer: To avail an overdraft facility from SBI against your FD, the minimum amount should be Rs.25,000.

    9. Can I avail an online overdraft facility against my tax saving deposit in SBI?

    Answer: Unfortunately, SBI does not offer overdraft facilities on tax saving deposits and recurring deposits.

    10. What is the overdraft limit on FCNR deposits in HDFC Bank?

    Answer: You can avail an overdraft of up to 70% of the deposit amount in your HDFC FCNR deposit.

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    Customer Reviews

    • ICICI Bank Fixed Deposit
      "Customer centrice & User friendly app"
      0.5 4.0/5 "Great!"
      I am doing Fixed Deposit with ICICI BANK and its been around 5years. They haven't been paying good interest and its more or less same like other banks as I used to hold my salary account with ICICI, I have decided to be with one bank. There is no locking period and its flexible. They do give good support and the app is user friendly. Even deposit account can be opened through i-mobile or net banking itself.
      Was this review helpful? 0
      , nasik
      Reviewed on Oct 15, 2019
    • SBI
      SBI Fixed Deposit
      "Good"
      0.5 3.0/5 "Satisfactory"
      I had a Fixed Deposit in State Bank of India, I have completed the tenure before 3months ago. I have no issues with the customer service. They are given me 7% interest rate for 2years. There is no profit and processing fee. I got an online access, where I can check the interest rate anytime on the YONO app or else SBI online.
      Was this review helpful? 1
      , tirupati
      Reviewed on Oct 15, 2019
    • SBI Fixed Deposit
      "Interest charges are good. "
      0.5 3.0/5 "Satisfactory"
      I have invested some money through FD. My salary account is in SBI so i have a zero ATM charges and the limit is not actually set by SBI. They do have short term FDs which is pretty good. I have invested the money of Rs. 60000 and the interest rate is 10.01% for the tenure period of 16 months. There is no lockin period. There is no hassle to getting the money back.
      Was this review helpful? 7
      , kolkata
      Reviewed on Oct 01, 2019
    • Dena Bank Fixed Deposit
      "Good plan for senior citizen"
      0.5 2.0/5 "Expected more"
      I have invested the money in Dena bank through Fixed deposit and the growth is not that much good. They are not taking any hidden charges. Only because of the Government undertaken bank, i have selected them. They are providing a interest rate of 6% per annum. I have invested the money of Rs. 2 lakhs. There is a lockin period of 1 year.
      Was this review helpful? 3
      , new delhi
      Reviewed on Sep 24, 2019
    • Axis Bank Fixed Deposit
      "Interest should be increased for FD"
      0.5 3.0/5 "Satisfactory"
      I have opt for fixed deposit for the tax saving purpose because I have chosen five years tenure with AXIS Bank, still its going on. Only once I Invested my money it has the locking period of five years. I have option to check my transactions through mobile app. But I have concern about the interest rate is very lesser for this FD.
      Was this review helpful? 5
      , hyderabad
      Reviewed on Sep 19, 2019
    • SBI Fixed Deposit
      "FD process should be simpler"
      0.5 1.0/5 "Really Bad"
      I had fixed deposit with SBI then I withdrawn the amount, I done Rs. 3 lakhs of investment on my daughter name then I taken the liquidity to purchase the land, at the time I struggled a lot to take that money because the process was difficult to withdrawn the money after seven months of tenure.
      Was this review helpful? 15
      , madurai
      Reviewed on Sep 03, 2019
    • Union Bank of India Fixed Deposit
      "Not good"
      0.5 3.0/5 "Satisfactory"
      I had a Fixed Deposit with Union Bank of India and its closed 18 to 19 months due to personal reasons. I am doing investment but my experience is not good with FD account. In my home town, there is no other banks so just decided to go with this bank. The returns are good.
      Was this review helpful? 7
      , bangalore
      Reviewed on Aug 28, 2019
    • HDFC Bank Fixed Deposit
      "Good to go with HDFC"
      0.5 5.0/5 "Blown Away!"
      I have one FD with HDFC, I deposited Rs. 1 lakh, I was opt for 45 days of tenure. Finally I got 6.25% of interest for 45 days. It won't cover the tax, if we need tax benefits we should go for five years term. I can track the details through netbanking, on the maturity date the amount credits automatically in the account. Even the notification can customized.
      Was this review helpful? 8
      , bangalore
      Reviewed on Aug 27, 2019
    • HSBC Bank Fixed Deposit
      "wrong calculation of interest rates"
      0.5 0.5/5 "Unacceptable"
      HSBC staff wrongly pre closed my fixed deposit .. and calculated the interest rates wrongly and when asked them for clarification never got back .. even after following up with them repeatedly for more than 3 months.. would highly recommend not using their services.
      Was this review helpful? 4
      , visakhapatnam
      Reviewed on Aug 24, 2019
    • SBI Fixed Deposit
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I do have a Fixed deposit account with SBI and it was carried out by Mom and even I have account for my daughter. Its still running and they have Google application separately to access online. The returns are good. I am doing monthly investment and it was opened quite a long may be 4 years.
      Was this review helpful? 9
      , ahmedabad
      Reviewed on Aug 23, 2019
    • ICICI Bank Fixed Deposit
      "Good"
      0.5 5.0/5 "Blown Away!"
      I just opened a Fixed Deposit with ICICI BANK and have not done any survey on this. I am account holder with them so it was easy to do FD account even they are providing 7% interest rate. The process is very user friendly and never faced any hassle. I could access this account via online.
      Was this review helpful? 6
      , new delhi
      Reviewed on Aug 21, 2019
    • Post Office Fixed Deposit
      "Good for future"
      0.5 3.0/5 "Satisfactory"
      In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
      Was this review helpful? 17
      , burdwan
      Reviewed on Aug 09, 2019
    • SBI Fixed Deposit
      "Good for future saving"
      0.5 5.0/5 "Blown Away!"
      I have FD with SBI, I have opt for one year term there is no such limitation for depositing the money. The interest rate is good for the FD, the online banking is convenient to take liquidity. They resolve the queries on time. Its most safe and secured.
      Was this review helpful? 4
      , visakhapatnam
      Reviewed on Aug 08, 2019
    • SBI Fixed Deposit
      "Average"
      0.5 4.0/5 "Great!"
      I have selected state bnak of indis fixed deposit amount 1 lakhs , Tenure 5 years and Rate of interest 8 percentage after renewal fixed deposit 6 percentage is very less .while document directly bank . Customer service is not good and responsive.
      Was this review helpful? 8
      , kochi
      Reviewed on Aug 05, 2019
    • Kotak Fixed Deposit
      "Excellent Banking"
      0.5 5.0/5 "Blown Away!"
      I activated FD account with Kotak, I have been maintaining this account since when I opened saving account, I converted Rs. 5000 for one year. They are providing interest around 7.6% per annum, the online netbanking and mobile app is very convenient for deposit to FD.
      Was this review helpful? 5
      , mumbai
      Reviewed on Aug 03, 2019
    • ICICI Bank Fixed Deposit
      "Good"
      0.5 4.0/5 "Great!"
      I have invested my FD with ICICI BANK and also have a 3in1 account with them. The interest rate is pretty good. Recently started before 6months, I can do premature withdrawal and also have selected a locking period of 3 years. The customer service is good and overall am satisfied with this bank.
      Was this review helpful? 4
      , mumbai
      Reviewed on Aug 01, 2019
    • Post Office Fixed Deposit
      "Safe and Secured"
      0.5 4.0/5 "Great!"
      My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
      Was this review helpful? 13
      , bangalore
      Reviewed on Aug 01, 2019
    • SBI Fixed Deposit
      "Too much good scheme"
      0.5 5.0/5 "Blown Away!"
      Chosen my fixed deposit from State bank of India. I have invested the money of Rs. 57000 and SBI is a most popular bank all over the India and offering all the facilities compared to bank. Since i have a salary account with them, its easy to transfer the money. They are providing the interest rate of 6.5%.
      Was this review helpful? 7
      , kolkata
      Reviewed on Jul 31, 2019
    • Union Bank of India Fixed Deposit
      "Good Investment"
      0.5 4.0/5 "Great!"
      Union of India fixed deposit is same as other investment. Being an existing customer I have opt for one year of fd, the online banking feature is good to open and closing the account, they was no charges for the liquidity of fund before the maturity.
      Was this review helpful? 3
      , mumbai
      Reviewed on Jul 29, 2019
    • SBI Fixed Deposit
      "Good investment plan"
      0.5 4.0/5 "Great!"
      Chosen my fixed deposit from state bank of India because the given rate of interest is high. They are not deducting any service charges. I have invested the money of Rs. 1 lakhs and there is no lockin period and i have chosen the plan for 1 year and they are giving a interest rate of 6.75%.
      Was this review helpful? 11
      , bangalore
      Reviewed on Jul 25, 2019
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