Multiple banks. Different interest rates. Call it a "conflict of interest".
  • loading

    We found 31 Loan Against Fixed Deposit

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    11.49% - 15.99% Fixed
    0.5%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Ad
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.99% - 14.49% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Ad
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.99% - 19.8% Fixed
    Up to 2% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.49% - 21.00% Fixed
    0 One time fee
    20L Max
    1-6 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    13.99% - 16.99% Fixed
    0 One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless Approval Option Available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    10.99% - 17.99% Fixed
    2.25% (min. ₹1499 + applicable tax) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    12% - 18% Fixed
    Up to 1.5% One time fee
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free INSTANT DECISION
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    12% - 19% Fixed
    Up to ₹3000 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.70% - 11.70% Floating
    0.5% One time fee
    50 K - 10 L
    1-5 Years
    Response Time Within 30 minutes
    Guarantor Required Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    17.25% - 37% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11% - 16.49% Fixed
    Up to 2.5%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.75% - 13.75% Fixed
    1% One time fee
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria

    Loan Against Fixed Deposit is Rated as "Great!" by 77002 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN

    What is loans against fixed deposits?

    A loan against Fixed Deposits is precisely what the name implies; it is a loan obtained against the amount invested in a fixed deposit. Loans against fixed deposits can be a smarter option while availing loans, as these are easier to obtain and the interest rate for these loans is much lower than traditional loans.

    Loans are traditionally obtained to meet emergency needs, which involve liquid cash. Breaking a fixed deposit might come to mind to meet this requirement but obtaining a loan against the fixed deposit makes more sense. Money invested will continue to fetch interest once the loan has been cleared and the interest paid on loan could be less than the overall interest earned at times.

    Fixed Deposits are a popular investment choice and a majority of individuals keep their savings in such deposits. Most fixed deposit loans are given in the form of an overdraft against the deposited amount. This loan ensures that any emergency can be dealt with and the amount in the deposit remains as it is.

    What are fixed deposits?

    A fixed deposit refers to a sum of money invested in a bank or any other financial institution which offers the depositor a specific interest which is paid for the duration of the deposit. A fixed interest rate is given on the investment for a fixed period of time. Once the investment reaches maturity, both the principal amount and the interest are paid back to the investor. A Fixed Deposit account is one of the most favoured accounts, owing to the high rate of interest offered by banks and financial institutions.

    A Fixed Deposit is generally used by both individuals and organisations to store liquid funds for a fixed period, which can then be used for any future needs. Fixed Deposits are considered a safe investment option and while the interest rate offered by them is on the lower side, they still offer decent returns on the investment. Fixed Deposits are often referred to as Term Deposits in many countries.

    Interest rates on Fixed Deposits vary according to the term period, with longer term periods attracting better rates. Fixed Deposits can be opened for terms ranging from a minimum of 7 days to a maximum of 10 years.

    How much loan can be availed against Fixed Deposits?

    The loan amount which can be obtained against fixed deposits depends on the initial amount invested in them. A majority of banks which offer loans against fixed deposits provide loans upto 70-90% of the fixed deposit investment. This loan amount varies from bank to bank and certain banks are known to provide loans up to 95% of the investment, in cases where the initial investment is over Rs 50 lakh. Lower investments generally translate into lower loan amounts.

    Loans over Rs.1 crore can be availed based on the investor’s relationship with the bank and there is generally no fixed upper limit on the loan amount, as it entirely depends on the money invested in the fixed deposit. Higher the fixed deposit amount, higher the loan in most cases.

    Loan Tenure

    The tenure of any loan obtained against fixed deposits depends on the tenure of the fixed deposit. The loan tenure cannot extend beyond the term of the fixed deposit and is available only for the remaining period up to maturity. For example, if a loan is availed against a fixed deposit of 5 years after 1 year, the individual has to repay the loan within the next 4 years, before the fixed deposit reaches maturity. In case of foreign currency loans, most banks provide it for a minimum period of one year and the maximum period to clear the loan is on maturity of the fixed deposit. The loan can be availed at any time during the fixed deposit tenure.

    Features and Benefits of Loan against Fixed Deposits

    An individual who chooses to avail a loan against fixed deposits has many advantages over conventional loans. Some of the major features and benefits are mentioned below.

    • High Loan Amount – Individuals can get loan amounts up to 95% of the fixed deposit investment. This means higher the investment one has higher the loan they can get. Most banks sanction loans which are 80-90% of the invested amount and if the individual has a long history with the bank they can get higher amounts sanctioned.
    • Hassle Free – Most banks offer loans against fixed deposits without much hassle. An individual is not required to fill out detailed forms or go through a strict process before getting the loan. The process is fast and simple.
    • Low interest – The interest for loans availed against fixed deposits are comparatively lower than Interest rates for Personal Loans obtained by other means. The interest rate is generally 1-2% more than the interest rate an investor gets on his/her deposits. Interest is charged only on the amount utilized as loan and not the entire fixed deposit amount.
    • Flexible Repayment – The loan amount can be paid in flexible terms, with no strict payment dates and terms.
    • Liquidity – Loans obtained against fixed deposits offer instant liquidity in case of emergencies. These loans allow the individual to keep the fixed deposit secure and offer an alternative to breaking the fixed deposit to cater to urgent monetary needs.
    • Low processing fee – Loan applicants are not subjected to high processing fee by banks and the loan can be availed for negligible processing fee. Applicants who are on good terms with the bank could also get the entire processing fee waived.
    • No prepayment charges – Most banks do not charge a prepayment fee in case of early payment of loan.
    • No foreclosure fee – A majority of the banks do not charge any penalty in case of foreclosure on loans obtained against fixed deposits.
    • Payment only for utilisation – Loans against fixed deposits offer individuals the flexibility to pay for the loan only when they use it. They always have access to the available credit when they need it.

    Purposes for which loan money can be used

    • Personal Expenses – The loan amount can be used to pay for any personal expenses like home renovation, vehicle purchase, education bills, medical emergencies, wedding expenditure, and so forth.
    • Property – The money can be used to purchase property in India.
    • Business – The money can be used to meet business requirements such as purchasing assets, equity contribution or as working capital.

    Purposes for which loan money cannot be used

    A few banks mention certain restrictions on using loan money for certain purposes.

    • Investment in Chit-funds - The loan money cannot be used to invest in chit-funds or similar companies.
    • Investment in shares – Some banks do not allow the loan money to be used as an investment in shares or securities.
    • Re-lending money – The money obtained as loan cannot be re-lent to other individuals.
    • Agricultural Activities – A few banks restrict loan applicants from using the money for agricultural or plantation activities.

    Eligibility criteria

    • Applicant should have a fixed deposit account with the bank.
    • Applicant should be at least 21 years old.
    • Individual businesses which want to avail loan should be either sole proprietorship or partnership firms.
    • Certain banks allow only private limited companies and stock brokers to avail this loan.
    • The fixed deposit should not have reached maturity at time of applying for loan.
    • Loan can be obtained only if the deposit is free from any restraint or encumbrance.
    • Loan cannot be granted against fixed deposits which are held in the name of minors.
    • Loan can be availed only against deposits held by members of the same household/family.
    • Loan cannot be availed if the applicant has plans to close the deposit.

    Documents required

    • Filled up application form.
    • Fixed Deposit details including receipts discharged in favour of the banks.
    • A cancelled cheque might be required if loan is being taken from financial institutions other than banks.
    • Duly signed agreement letter.
    • Passport size photographs.
    • Valid identity proof.

    Interest rate and fees

    The interest rate for loans against fixed deposits are comparatively lower than the rates charged for other types of loans. Banks generally charge an interest rate which is 2-2.5% higher than the interest rate being paid by the bank on the fixed deposit. This amount varies from bank to bank, with private banks generally charging a higher interest than nationalised banks.

    For example, let us say that an individual customer has a fixed deposit which earns him interest at the rate of 10% per annum. If he/she wishes to avail a loan against this fixed deposit the bank will charge him/her an interest rate of 12 to 12.5%, depending on bank policies. This interest will be charged only for the period for which the loan is availed and not the entire term of the fixed deposit.

    Banks generally charge a minimum processing fee, which can be a few hundred rupees to process the loan. This fee can be waived if the applicant is on good terms with the bank and has a good reputation. A few banks do not charge any processing fee or hidden charges and most banks do not charge pre-closure charges either.

    Repayment

    Banks offer customers different repayment options. There are generally no fixed repayment dates and a working relationship can be charted out between the bank and the loan applicant. Some banks insist on payment of interest on a monthly basis while some allow the interest to be paid at maturity. In cases where the interest plus loan amount exceeds the deposit the customer might be asked to repay part of the amount immediately.

    Advantages over breaking the Fixed Deposit

    Taking a loan against fixed deposits can be better than breaking the fixed deposit to meet demands. The first benefit is that one does not have to pay a penalty for premature withdrawal, which is generally about 1% of the rate.

    The interest rate which is charged by banks for loans against fixed deposits is much lower than other rates. Banks generally charge a rate which is 2% higher than the interest being earned on the deposit. A loan availed at this rate might ultimately cost the applicant no money, with the interest earned being more than the interest paid.

    Consider the following case where a man who has a fixed deposit of Rs 10 lakh for 2 years at an interest rate of 10% per annum. If he decides to take a loan of Rs 8 lakh for 1 year at an interest rate of 12% he ends up paying Rs 9600 as interest. The interest accumulated on the sum over the complete duration is Rs 11,000. Thus even after paying off the interest on the loan the man manages to earn Rs 1400 as interest.

    FAQs

    Can NRIs avail loan against Fixed Deposits?

    Yes, NRIs can avail loans against fixed deposits, if they satisfy certain conditions.

    Are loans against fixed deposits exempt from tax?

    No, the interest earned on fixed deposits are not exempted from tax. The loan amount is subject to tax if it falls under the taxation bracket.

    What is the minimum and maximum loan which can be availed against fixed deposits?

    Certain banks state that the minimum loan which can be availed against fixed deposits should be Rs 25,000 and the maximum amount which can be availed is 95% of the deposit value. These numbers vary from bank to bank.

    Is interest for loans charged for the entire duration of fixed deposit?

    No, an interest is charged only for the period till the loan is cleared. No interest is charged on the amount once all dues are paid.

    Does the Fixed Deposit continue to earn interest during the period of loan?

    Banks do not give the entire deposit as loan amount and the amount which is left in the Fixed Deposit after processing the loan continues to earn interest even during the loan period.

     Loading your search... Loading your search...
  • Loan Against Fixed Deposit Reviews

    • Bank Bazaar Customer Support
      "GUIDANCE"
      0.5 5.0/5 "Blown Away!"
      This is the very first time I approached bankbazaar, also I am very much satisified with all their steps for searching for my product. It happens, some times where people would not be interested in doing online search, but here after gaining sufficient information I would recommend all my friends, relatives to give a try atleast once. My hearty thanks to the team Bankbazaar.com for providing their valuable time for their customers in a proper way. Hope they would get back to me with a favourable reply on time.
      Was this review helpful? 0
      , bhopal
      Reviewed on Jul 20, 2017
    • SBI Personal Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan from State Bank of India and the process for it was smooth. I did not have much of a documentation process and also I did not get the loan on time. The rate of interest and processing charges were very much normal too. But on the other hand, after loan services were very much hassle free.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 20, 2017
    • Bank Bazaar Customer Support
      "Overall a good experience "
      0.5 3.0/5 "Satisfactory"
      The services rendered by bankbazaar is really great and I had a lot of follow up calls from them. The response was prompt from the moment I registered with them. It would have been better, if the companies whom they connect the customer too is also responsive. Lastly, the website is very much user friendly.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 20, 2017
    • Citibank Personal Loan
      "Not professional"
      0.5 1.0/5 "Really Bad"
      As a matter of fact, Citibank collected all my documents and after which they did not process my personal loan request and did not get back to me as well. It was not a very good experience as they were not very much professional. Not too sure on the interest rate and processing charges too.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 20, 2017
    • Bank Bazaar Customer Support
      "I had got good response from bankbazaar on my loan applicati"
      0.5 2.5/5 "Just OK"
      I had got good response from bankbazaar on my loan application. I approached bankbazaar for my requirement and submitted my loan application on the website. On which they responded and provided a good service. Their website is good and it is easy to handle.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Amazing"
      0.5 4.0/5 "Great!"
      It was simple and straight forward experience. I really hope my application goes through. The staffs were really helpful. They kept calling me and following it up until I uploaded the documents. I've never seen such a simple online application so far. Thank you.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very smooth way to loans"
      0.5 5.0/5 "Blown Away!"
      I need personal loan & it seems easiest way to avail through Bankbazaar. Also I am feeling very much comfortable as the process is really quick. I wish good luck to everyone & recommend to go with Bankbazaar. Go with it to full fill yours all financial requirements through this site. Thanks.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 4.0/5 "Great!"
      I got very good response in concern to my personal loan application with bank bazaar. The customer service with bank bazaar is really good and very supportive. The website with bank bazaar is easy to use and user friendly. I am satisfied with the bank bazaar service.
      Was this review helpful? 0
      , konnagar
      Reviewed on Jul 19, 2017
    • ICICI Bank Personal Loan
      "Average service"
      0.5 2.0/5 "Expected more"
      The ICICI bank executives told that the private or public company employees are not eligible to get the loan, They are not interested to give the loan for the people those who own a company. The customer service and the response was average with ICICI bank. The rate if interest charged by them is higher than the normal one.
      Was this review helpful? 0
      , konnagar
      Reviewed on Jul 19, 2017
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The HDFC bank service is really good in concern to my personal loan. The customer service and the response was good with HDFC bank. The rate of interest is nominal with HDFC bank. I have choose the HDFC bank for my personal loan because of their low interest rate.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 4.0/5 "Great!"
      Bank bazaar maintains prompt follow up with the customers, because they will fix appointments and reaches the customer on appropriate time. The website with bank bazaar is easy to use and user friendly. The customer service and the response is very good with bank bazaar.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2017
    • Kotak Personal Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I haven't proceeded with Kotak Mahindra bank because of their interest rate. I have chosen HDFC bank for my personal loan. The customer service and the response with Kotak Mahindra is good and supportive. The rate of interest is high with Kotak mahindra when compared with HDFC bank. I would say I got an average service from Kotak Mahindra.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      I got immediate response from bank bazaar in concern to my personal loan application. The customer service and the response is really good with bank bazaar. The website with bank bazaar is easy to use and user friendly. I would say bank bazaar gives very good service to the customers.
      Was this review helpful? 0
      , bhimavaram
      Reviewed on Jul 19, 2017
    • ICICI Bank Personal Loan
      "Average service"
      0.5 1.0/5 "Really Bad"
      I haven't received any kind of calls from ICICI bank in concern to my personal loan application and I am not sure why they have closed my application. The customer service and there response part need to improved with ICICI bank. The rate of interest is nominal with ICICI.
      Was this review helpful? 0
      , bhimavaram
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      The service provided by bank bazaar is quick and fast. The customer support and the response is really good with bank bazaar. The bank bazaar website is easy to use and user friendly. I get to know about bank bazaar through google web search. I am with bank bazaar for past 6 months. I am satisfied with bank bazaar service.
      Was this review helpful? 0
      , ankleshwar
      Reviewed on Jul 19, 2017
    • ICICI Bank Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      ICICI executive gave a call and explained me about the product very clearly and helped me to know about the product briefly . The customer service and the response is very good with ICICI bank. The rate of interest is nominal with ICICI bank. I am happy about the ICICI bank service.
      Was this review helpful? 0
      , ankleshwar
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      I am with bank bazaar for past more than year. I get to know about bank bazaar through online web search . The customer service and response with bank bazaar is really good. The web site with bank bazaar is easy to use and customer friendly. I am satisfied with the bank bazaar service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • ICICI Bank Personal Loan
      "Need improvement"
      0.5 3.0/5 "Satisfactory"
      I have applied credit card personal loan twice with ICICI bank, but there was no response in concern to my applications. The customer service and the response is average with ICICI bank. The rate of interest is high when compared with others.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • SBI Personal Loan
      "Improvement needed in service"
      0.5 5.0/5 "Blown Away!"
      The personal loan process need to be quick and fast with SBI. The customer service and the response need to be focused a lot. They are talking too much of time to disburse the personal loan. They took around 10 to 15 days of time to disburse my loan and they call it as express in disbursing the loan. As I hold a salary account with SBI they have offered me with low interest rate.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 4.0/5 "Great!"
      The response is really good with bank bazaar executives . The customer service and the follow up with bank bazaar is really good. I got to know about bank bazaar through online web search. I am with bank bazaar for past 2 months. The website with bank bazaar is easy to use and user friendly, I am satisfied with bank bazaar service.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 19, 2017
    Common Loader Icon
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.