• 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    • Interest will be charged only on the withdrawn amount while the remaining FD will continue to accrue interest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

    • SBI Fixed Deposit
      "Good in FD service"
      0.5 5.0/5 "Blown Away!"
      I am having a savings account with State Bank of India hence i have selected the Fixed deposit investment scheme with them. They are providing the interest rate of 8%. I have invested the money 2 years back and there is a lockin period of 72 months.
      Was this review helpful? 35
      , visakhapatnam
      Reviewed on Mar 02, 2020
    • Kotak
      Kotak Fixed Deposit
      "Safe and secure"
      0.5 4.0/5 "Great!"
      Kotak Mahindra bank is a reliable bank and good management thats the reason i have invested the fixed deposit scheme in this bank. They have provided me a interest rate of 7% and i have kept for the period of 1 year and 1 month. Overall, I'm satisfied with their services.
      Was this review helpful? 7
      , ahmedabad
      Reviewed on Mar 01, 2020
    • HDFC Bank Fixed Deposit
      "Safe and Secure"
      0.5 5.0/5 "Blown Away!"
      I have purchased HDFC Fixed deposit which I am renewing for every 13 months. They have given me an interest rate of 7% and There is no processing fee and there is no locking period as well. If I'm withdrawing FD amount before locking period, they are charging some amount.
      Was this review helpful? 19
      , ahmedabad
      Reviewed on Mar 01, 2020
    • Punjab National Bank Fixed Deposit
      "PNB Fixed Scheme is good"
      0.5 5.0/5 "Blown Away!"
      I went to the nearby branch for the Punjab National Bank for taking my fixed deposit as per my family members recommendation. I have invested the money of Rs. 50000 there was a lockin duration of 6 years when i withdraw the money, i got the money of Rs.1 lakhs. They have offered me a interest rate of 7%.
      Was this review helpful? 15
      , jamshedpur
      Reviewed on Feb 27, 2020
    • Post Office Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I was having my savings account from Post office hence i have invested my money into Post office Fixed deposit scheme. I have invested the money of Rs. 25000. There is a lockin period of 10 years. I have invested the money in the year of 2011. Post office service is proper. Overall, I'm happy about the services.
      Was this review helpful? 43
      , chennai
      Reviewed on Feb 25, 2020
    • HDFC Bank Fixed Deposit
      "FD is not good with HDFC"
      0.5 4.0/5 "Great!"
      I have invested some money as a Fixed deposit in HDFC Bank and the interest rate is not that much great because they are giving interest as compared to others. I have invested the money of Rs. 3L and there is a locking period of 5 years. Its 7% interest rate. If they are increasing the interest rate, it would be fine. Since I do all my transactions with this bank, I have selected same for my FD as well.
      Was this review helpful? 16
      , bangalore
      Reviewed on Jan 31, 2020
    • SBI Fixed Deposit
      "Good support"
      0.5 5.0/5 "Blown Away!"
      I have chosen my fixed deposit scheme from State bank of India because I'm maintaining my salary account with them and they provided rate of interest is fine for me. I have invested the money of Rs. 2.75 lakhs. There is a locking period of 45 days. They are giving interest rate of 4.5%. Overall, I'm satisfied with their services.
      Was this review helpful? 25
      , namakkal
      Reviewed on Jan 18, 2020
    • Kotak Fixed Deposit
      "Good App"
      0.5 5.0/5 "Blown Away!"
      I have been investing the money of Rs. 3 lakhs for the fixed deposit. I have selected Kotak mahindra bank for the FD because their net banking facility is very different when i compared to other. I can access everything regarding the account hence its easy to handle the transactions. I'm not sure about the interest rates. 7 months before, i have invested the money.
      Was this review helpful? 11
      , bangalore
      Reviewed on Jan 08, 2020
    • Kotak Fixed Deposit
      "Excellent Services"
      0.5 5.0/5 "Blown Away!"
      Its because of the competitive interest rates, i have selected the Fixed deposit in Kotak Mahindra bank. I have invested the fixed deposit 1.5 years ago and there is a lockin period of 5 years. They have invested the amount of Rs. 7.5 % and the employees are helpful in the branch.
      Was this review helpful? 9
      , mumbai
      Reviewed on Jan 08, 2020
    • Axis Bank Fixed Deposit
      "Good Savings scheme"
      0.5 4.0/5 "Great!"
      I have a Fixed deposit in Axis bank. I have invested the money of Rs. 10000 for two FDs. There is a lockin duration of 1 year. They are giving a interest rate of 7%. Through net banking, i have activated this Fixed deposit. There is no tax benefits available. Axis bank service has been good. Overall, I'm happy about their services.
      Was this review helpful? 10
      , kolkata
      Reviewed on Dec 31, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Good Scheme"
      0.5 5.0/5 "Blown Away!"
      Since last 15 years, i have a account with Oriental bank of commerce thats the reason i have invested the money in fixed deposit with the same bank. I have invested the amount of Rs. 11 lakhs. They are giving the interest rate of 6.5%. There is no locking period but i have chosen the duration of 1.5 years. There is no additional charges deducted for this fixed deposit.
      Was this review helpful? 17
      , bulandshahr
      Reviewed on Dec 03, 2019
    • Post Office Fixed Deposit
      "Good Service"
      0.5 4.0/5 "Great!"
      Interest rate is very low in Indian post office Fixed deposit scheme because they are providing only 8.5%. I have chosen this office because of the child benefits. I have invested the money of Rs. 1.5 years. Its 3 years lock in period. Overall, I'm satisfied with the service provided by post office employees.
      Was this review helpful? 64
      , parvathipuram
      Reviewed on Dec 03, 2019
    • SBI Fixed Deposit
      "Good bank for Fixed Deposit"
      0.5 4.0/5 "Great!"
      I have invested the money in SBI for a fixed deposit and based on my wife recommendation i have chosen it. They are providing the interest rate of 7.25%. They have option to select the lock in period in that i have chosen 5 years. We had visited their branch and the response was good.
      Was this review helpful? 36
      , mumbai
      Reviewed on Nov 12, 2019
    • HDFC Bank Fixed Deposit
      "Good one"
      0.5 4.0/5 "Great!"
      Its easy accessible and to redeem so that i have invested the money in Fixed Deposit with HDFC BANK. I have invested the money of Rs. 2.5 lakhs and they have provided me a interest rate of 7.5%. There is no locking period. I didn't got any additional charges till now.
      Was this review helpful? 21
      , hyderabad
      Reviewed on Nov 12, 2019
    • Post Office Fixed Deposit
      "Safety deposit"
      0.5 5.0/5 "Blown Away!"
      I have paid the money of Rs. 4.5 lakhs as a fixed deposit in the Indian post office. For the safety purpose, i have chosen the post office account. They are offering me a interest rate of 7.9%. There is a lockin period of 5 years. If i withdraw the money in 1 year, they will reduce the interest rate of 2% and after 3 years, its 1%.
      Was this review helpful? 117
      , jaipur
      Reviewed on Nov 08, 2019
    • Central Bank of India Fixed Deposit
      "Good Bank"
      0.5 4.0/5 "Great!"
      Interest rates are less in Central Bank of India so I had taken a fixed deposit. I have invested the money of Rs. 1 lakh in my wife's name. Branch is near from my place so I have chosen this bank. Yearly once, I get the money of Rs. 6,765 for the interest. There is a locking period of 1 year.
      Was this review helpful? 14
      , tirupur
      Reviewed on Nov 06, 2019
    • 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? 20
      , nasik
      Reviewed on Oct 15, 2019
    • 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? 31
      , 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? 44
      , 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? 18
      , new delhi
      Reviewed on Sep 24, 2019
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