Personal Loan against Fixed Deposit

• It offers lower interest rates as compared to unsecured personal loans. 

• You will get quick approval with minimal paperwork since the FD is used as security. 

• You will continue earning your interest as there is no need to break your FD. 

• You will get flexible repayment options, including EMIs or adjustments at maturity. 

• You will get a high loan amount, usually up to 80% to 90% of the FD value. 

• Funds can be easily accessed in case of emergencies or short-term needs without affecting savings. 

Eligibility Criteria for Personal Loan Against Fixed Deposit 

You must fulfil the criteria given below in order to apply for a personal loan against a fixed deposit: 

• You must be a resident individual with the age of 18 years or more. 

• You should have a valid fixed deposit account with the bank or financial institution. 

• Hindu Undivided Family (HUF), sole proprietorships, and partnership firms may also be eligible. It depends upon the lender’s policy. 

• Joint FD holders (with consent from both) 

How to Apply for Personal Loan against FD Online? 

By following the steps given below, you can easily apply for personal loan against FD: 

Step 1: Log in to the net banking portal of your bank or you can download the bank’s mobile banking app. 

Step 2: Navigate to the fixed deposit account section. 

Step 3: Select the option ‘Loan Against FD’. 

Step 4: Enter the loan amount that you want to apply for.

Step 5: Select the repayment tenure as per your needs.

Step 6: Check all the details carefully and submit your application. 

Step 7: After reviewing all the details, the bank will approve your loan amount. 

Banks offering personal loans against fixed deposits

• HDFC Bank Loan against FD
• Karur Vysya Bank Loan against FD
• SBI Loan against FD
• Axis Bank Loan against FD
  

Points to Remember

• Money should be free from lien or encumbrance
• Deposit should not be in a minor's name.
• If the deposit is under the joint name of both husband and wife, all holders of the deposit are liable to repay the loan.

Financial Prudence

Although taking a personal loan against your fixed deposit is easier compared to a standalone personal loan, tread with caution and don't go overboard. If you don't repay your loan on time, you will lose your fixed deposit (banks may foreclose the fixed deposit to recover the loan amount). Consequently, your CIBIL score will take a beating.