Personal Loan Against FD

Fixed Deposit (FD) allows an individual to save a lump sum of money while earning high returns at fixed interest rates. Besides increasing your savings, many banks also facilitate personal loan against FD. The banks generally offer short-term loans at low rates of 1-2% p.a. above fixed deposit interest rates.

Read more
Best Investment Options
  • Save upto ₹46,800 in tax under Sec 80C

  • Inbuilt Life Cover

  • Tax Free Returns Unlike FD+

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
Get Guaranteed returns along with life cover
invest in 100% Guaranteed Return Plans Tax benefits under sec 80C & No Tax on returns+
+91
Secure
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on ''View Plans'' you, agreed to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Let us learn more about personal loan against FD that top banks in India offer.

What is a Personal Loan Against FD?

A personal loan against FD is a financial facility that allows an individual to keep their Fixed Deposit as collateral to raise money. This helps the customers to get urgent funds for the short/medium-term, depending on their Fixed Deposit (FD) tenure. 

You can take a personal loan against FD for medical treatment, home renovation, or a wedding. The facility helps in keeping the savings intact while raising money to meet emergency expenses.

Comparison Between
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.5% (TAX-FREE)
Returns After Tax
7.5%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
awards
Still Better than FD’s and Debt Mutual Fund
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
VIEW PLANS
*For annual premium upto ₹5 Lacs

Features of Personal Loan on FD

Let us learn the important features of the facility of personal loan against FDs in the list below:

  • Loan Amount: Get loans of up to 90-95% of Fixed Deposits value

  • Overdraft Facility: Both facilities of personal loan and overdraft against FD are provided

  • Interest Rates: Avail loans at low-interest rates i.e. generally, 1% over the FD interest rates

  • Fees & Charges: Less to no loan processing fees or charges

  • Penalties: Zero penalties on pre-payment of loan

  • Channels to Access Facility: Internet banking/ bank apps/ physical branches

  • Loan Repayment: Flexible loan repayment options e.g. in a lump sum or periodic instalments on a monthly/ quarterly/ annual basis

  • Credit Card: Banks also offer credit card facilities on your FD funds

Documents Required to Get Personal Loan on FD

Let us learn the list of required documents to avail of a hassle-free loan against fixed deposits:

  • Application form for the loan on FD

  • Fixed deposit receipts

  • Letter of pledge/ lien

  • KYC verification documents

  • Cancelled cheque, in case of non-cumulative FD

  • Overdraft facility agreement

  • Pledge of loan repayment

Top Banks Offering Personal Loans on Fixed Deposit

Here is a list of the top banks that offer personal loans against fixed deposits at attractive interest rates:

Bank Name Loan @ Interest Rate
(In % p.a. above FD interest rates)
Maximum Limit of Loan Against FD (in % of FD Amount) Minimum Limit of Loan Amount
State Bank of India (SBI) 1% above  95% Rs. 5000- Rs. 5 crores
Punjab National Bank 0.75% above 90% Rs. 25000- Rs. 5 crores
HDFC Bank 2% above 90% Rs. 25000
Yes Bank 1% above 90% Rs. 10000- Rs. 2 crores
Axis Bank 2% above 85% Rs. 25000

fd return beater

Premature FD Withdrawal vs Personal Loan Against FD

The difference between taking a personal loan on FD and premature liquidation of an FD account is tabulated below:

Partial Withdrawal on FD Personal Loan on FD
  • Lending institutions charge penalties on a premature withdrawal from FDs
  • The penalty is charged at the rate of 0.5-1% p.a. of the FD amount. You can calculate the amount using FD premature withdrawal penalty calculator.
No charges or processing fees on taking a loan against fixed deposits

Standard Personal Loan Vs Personal Loan Against Fixed Deposit

Let us understand how a separate personal loan is different from a personal loan on fixed deposit in the following table:

Standard Personal Loan Personal Loan Against FD
  • High-interest rates are charged
  • Loan raised on unsecured collateral
  • Interest rates: 8-15% p.a.
  • Low-interest rates are charged
  • Loan raised on secured FD amount
  • Interest rates: 5-9% p.a.

FD interest rates India have fallen consistently over the last 12 years.
Invest in Plans that offer Guaranteed Returns for over 25 Years

Benefits

Personal Loan on FD is a beneficial facility towards strengthening your financial planning, considering the reasons below:

  • Emergency Funds: Helps resolve immediate financial liquidity crunch

  • Low-Interest Rates: Cheaper interest rates as compared to standard personal loans

  • Overdraft Against FD: Banks also allow overdraft facility of a loan on FD amount

  • No Fees/ Penalties: Generally, banks do not charge penalties and other fees for this facility

  • Prevents Premature Liquidation of FD: Individuals need not break their FD or lose interest returns on their FD funds

  • Minimal Paperwork: The applicant has to undergo only a fast and easy documentation process

Points to Consider Before Taking Personal Loan Against FD

Consider the points mentioned below before raising a loan against FD:

  • Both joint and single-life accounts can avail of a loan on fixed deposits.

  • Minors are not eligible to get a loan on FD.

  • Loan facility is not available with 5-year tax-saving FDs.

  • For a Joint Life account, both the joint policyholders will be liable to repay the loan.

  • Consider household income and expenses, before raising a large loan amount.

Guaranteed return plan Guaranteed return plan

Wrapping It Up

Banks offer personal loans on Fixed Deposits to their customers at attractive interest rates. However, maintaining financial prudence is crucial to not distort your financial planning and create a stressful situation for your family. Besides, you must always consider your loan repayment capability before taking an overdraft against your FD.

Allahabad Bank FD Interest Rates

Allahabad Bank FD Interest Rates

Andhra Bank FD Interest Rates

Andhra Bank FD Interest Rates

Assam Gramin Vikash Bank FD Interest Rates

Assam Gramin Vikash Bank FD Interest Rates

AU Small Finance Bank FD Interest Rates

AU Small Finance Bank FD Interest Rates

Axis Bank FD Rates

Axis Bank FD Rates

Bajaj Finance FD Interest Rates

Bajaj Finance FD Interest Rates

Bandhan Bank FD Interest Rates

Bandhan Bank FD Interest Rates

Bangiya Gramin Vikash Bank FD Interest Rates

Bangiya Gramin Vikash Bank FD Interest Rates

Bank of Baroda FD Interest Rates

Bank of Baroda FD Interest Rates

Bank of Ceylon FD Interest Rates

Bank of Ceylon FD Interest Rates

Bank of India FD Interest Rates

Bank of India FD Interest Rates

Bank of Maharashtra FD Interest Rates

Bank of Maharashtra FD Interest Rates

Baroda Gujarat Gramin Bank FD Interest Rates

Baroda Gujarat Gramin Bank FD Interest Rates

Canara Bank FD Interest Rates

Canara Bank FD Interest Rates

Capital Small Finance Bank FD Interest Rates

Capital Small Finance Bank FD Interest Rates

Central Bank of India FD Interest Rates

Central Bank of India FD Interest Rates

Citibank FD Interest Rates

Citibank FD Interest Rates

City Union Bank FD Interest Rates

City Union Bank FD Interest Rates

Corporation Bank FD Interest Rates

Corporation Bank FD Interest Rates

Dakshin Bihar Gramin Bank FD Interest Rates

Dakshin Bihar Gramin Bank FD Interest Rates

DBS Bank FD Interest Rates

DBS Bank FD Interest Rates

Dena Bank FD Interest Rates

Dena Bank FD Interest Rates

Dhanlaxmi Bank FD Interest Rates

Dhanlaxmi Bank FD Interest Rates

Equitas Small Finance Bank FD Interest Rates

Equitas Small Finance Bank FD Interest Rates

ESAF Small Finance Bank FD Interest Rates

ESAF Small Finance Bank FD Interest Rates

HDFC Bank FD Interest Rates

HDFC Bank FD Interest Rates

HSBC FD Interest Rates

HSBC FD Interest Rates

ICICI Bank FD Interest Rates

ICICI Bank FD Interest Rates

IDBI Bank FD Interest Rates

IDBI Bank FD Interest Rates

IDFC First Bank FD Interest Rates

IDFC First Bank FD Interest Rates

Indian Bank FD Interest Rates

Indian Bank FD Interest Rates

Indian Overseas Bank FD Interest Rates

Indian Overseas Bank FD Interest Rates

IndusInd Bank FD Interest Rates

IndusInd Bank FD Interest Rates

Jana Small Finance Bank FD Interest Rates

Jana Small Finance Bank FD Interest Rates

Karnataka Bank FD Interest Rates

Karnataka Bank FD Interest Rates

Kerala Gramin Bank FD Interest Rates

Kerala Gramin Bank FD Interest Rates

Kotak Mahindra Bank FD Interest Rates

Kotak Mahindra Bank FD Interest Rates

Lakshmi Vilas Bank FD Interest Rates

Lakshmi Vilas Bank FD Interest Rates

Muthoot Capital

Muthoot Capital

Nainital Bank FD Interest Rates

Nainital Bank FD Interest Rates

Odisha Gramya Bank FD Interest Rates

Odisha Gramya Bank FD Interest Rates

Paschim Banga Gramin Bank FD Interest Rates

Paschim Banga Gramin Bank FD Interest Rates

Paytm Payments Bank FD Interest Rates

Paytm Payments Bank FD Interest Rates

PNB FD Interest Rates

PNB FD Interest Rates

Prathama UP Gramin Bank FD Interest Rates

Prathama UP Gramin Bank FD Interest Rates

RBL Bank FD Rates

RBL Bank FD Rates

Saurashtra Gramin Bank FD Interest Rates

Saurashtra Gramin Bank FD Interest Rates

SBI FD Interest Rates

SBI FD Interest Rates

Shriram Finance FD Interest Rates

Shriram Finance FD Interest Rates

State Bank of Hyderabad FD Interest Rates

State Bank of Hyderabad FD Interest Rates

State Bank of Mysore FD Interest Rates

State Bank of Mysore FD Interest Rates

State Bank of Travancore FD Interest Rates

State Bank of Travancore FD Interest Rates

Syndicate Bank FD Interest Rates

Syndicate Bank FD Interest Rates

Tamil Nadu Grama Bank FD Interest Rates

Tamil Nadu Grama Bank FD Interest Rates

Telangana Grameena Bank FD Interest Rates

Telangana Grameena Bank FD Interest Rates

Tripura Gramin Bank FD Interest Rates

Tripura Gramin Bank FD Interest Rates

UCO Bank FD Interest Rates

UCO Bank FD Interest Rates

Ujjivan Small Finance Bank FD Interest Rates

Ujjivan Small Finance Bank FD Interest Rates

Union Bank of India FD Interest Rates

Union Bank of India FD Interest Rates

Uttar Bihar Gramin Bank FD Interest Rates

Uttar Bihar Gramin Bank FD Interest Rates

Uttarakhand Gramin Bank FD Interest Rates

Uttarakhand Gramin Bank FD Interest Rates

Vijaya Bank FD Interest Rates

Vijaya Bank FD Interest Rates

Yes Bank FD Interest Rates

Yes Bank FD Interest Rates

Expand

FAQs

  • Can we take a personal loan against FD?

    Yes, an individual can raise a personal loan against FD for their Joint or Individual Life account. FD accounts in the name of minors are not applicable for a loan on FD.
  • How much personal loan can I get against FD?

    Generally, the loan overdraft against FD between the ranges of Rs. 25,000- Rs. 5 crores is provided to the customers. Note that the limit of personal loans against FD varies as per the particular bank.
  • Is a loan against FD better than a personal loan?

    Yes, a loan on FD is a better option than a standard personal loan facility provided by lending institutions. Loan against FD offers an overdraft facility at cheaper interest rates of between 0.75-2% p.a. more than FD interest rates. 
  • What is the interest rate of a loan against FD?

    Various banks offer a loan on Fixed Deposits at low-interest rates, which is between 0.75%-2% p.a. higher than the FD interest rates. Generally, this interest rate of a loan against FD is around 5-9% p.a.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

FD Rates articles

Recent Articles
Popular Articles
Monthly FD Interest on ₹1 Crore

15 Apr 2024

A Fixed Deposit (FD) scheme helps to earn monthly FD interest on
Read more
Monthly FD Interest on ₹50 Lakh

11 Apr 2024

This article will help you to explore the potential returns of
Read more
How to Make the Most of Your Fixed Deposits with a Fixed Deposit Calculator in 2024

08 Jan 2024

Fixed deposits, with their guaranteed returns and relative
Read more
Mistakes To Avoid While Choosing Corporate Fixed Deposit

08 Jan 2024

When it comes to choosing Corporate Fixed Deposits, steering
Read more
How Does an FD Calculator Help Select the Right FD Scheme in 2024?

08 Jan 2024

In 2024, the role of Fixed Deposit calculators becomes
Read more
Application for Withdrawal of Fixed Deposit
Fixed Deposits are the safest investment instruments. You invest the amount of your choice as the fixed deposit
Read more
Which Bank has the Highest Interest Rate for Fixed Deposit?
The Small Finance Banks offer the highest FD interest rates for a tenure between 7 days to 10 years. Unity Small
Read more
SBI Fixed Deposit Monthly Income Scheme
Fixed deposits are the safest investment vehicles for Indian financial planners. You can open a fixed deposit
Read more
Nominee Vs Legal Heirs for Fixed Deposits
Fixed deposits are a popular investment option for individuals who wish to earn a stable rate of interest on
Read more
SBI Fixed Deposit Double Scheme
The SBI Fixed Deposit Double Scheme is named Special Term Deposit to cater to investors looking to double their
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL