Bank of India Loan Against FD

What is Bank of India Loan Against FD?

Bank of India loan against fixed deposit enables you to borrow money by providing your fixed deposit as security. BOI offers loans of 80% to 90% of the deposit value. The FD does not necessarily have to close prior to maturity.

Bank of India Loan Against FD Interest Rate 2026

The interest rate on a Bank of India loan against FD generally ranges between 1% and 2% above the Bank of India FD interest rate applicable to the deposit you pledge as security. The exact rate depends on the FD and the type of facility opted for and the Bank of India confirms the final rate at the time of application. The interest charged on the loan is separate from the interest your FD continues to earn, and both are applied independently.

Bank of India Loan Against FD Features at a Glance

Some of the key features of a loan against FD are:

Bank of India Loan Against FD Eligibility

The main eligibility conditions include:

• The FD should be held with Bank of India.
• The deposit should be eligible to be offered as security.
• The applicant should meet the applicable bank requirements.
• Required KYC and loan documentation must be completed.
• The applicable margin and other lending conditions must be met.
• The facility is subject to Bank of India's approval.

Documents Required

The documents required may vary depending on the applicant and the type of facility. Typical document that customers would likely require:

• Identity proof
• Address proof
• PAN number/correct tax information
• The Bank of India account details are:
• Fixed deposit details
• Application for a loan/overdraft.
• Required security documents

How to Apply for Bank of India Loan Against FD

Bank of India loan against FD can be applied in both online and offline modes.

Online Process

You can apply online through Bank of India’s digital banking channels.

• Step 1: Visit BOI Internet Banking and log in.
• Step 2: Navigate to the Loans / Advances section.
• Step 3: Look for an option related to “Loan / Overdraft Against Securities / Deposits” (if available).
• Step 4: Select your FD (if pledge‑able) or declare which FD you want to use as collateral.
• Step 5: Enter the proposed loan / OD amount, tenure (if applicable), and other required details.
• Step 6: Submit your request. The bank may ask you to visit a branch for lien‑marking of the FD.
• Step 7: After verification, the bank disburses the loan or OD limit to your linked account / as per process.

Offline Process

You can also apply by visiting the Bank of India branch where your FD is held.

• Step 1: At this very first step you need to visit your nearest branch.
• Step 2: Request the “Overdraft / Loan Against Securities / Deposit” form.
• Step 3: Fill out the application, specifying that you want to pledge your FD as collateral.
• Step 4: Submit a copy of your FD receipt and proof of identity (PAN, Aadhaar, etc.).
• Step 5: After your documentation submission bank verifies the documents and performs the KYC
• Step 6: Once approved, BOI sanctions the loan / OD limit, and you can draw funds as agreed.

Bank of India Loan Against FD Repayment and Tenure

The tenure of the Bank of India Loan Against FD depends on the FD given as collateral. The loan with interest has to be repaid within the agreed tenure. You can make the repayment of the loan as per the repayment schedule. The FD remains pledged until full repayment of the loan and released lien.

Charges, Fees and Penalties

Bank of India generally charges an interest rate 1% to 2% above the applicable FD rate for a loan or overdraft against an FD. Any applicable processing fees, service charges or other costs are subject to the bank's prevailing terms. Your FD stays pledged until the loan is repaid, subject to the applicable terms.

BOI Overdraft Against FD vs Term Loan Against FD

Bank of India offers both loan and overdraft facilities against eligible fixed deposits. A term loan is a loan of a fixed amount that you pay back according to the agreed repayment schedule. With an overdraft, you can draw funds up to the sanctioned limit and pay interest only on the amount you use. Choose the facility based on whether you need a fixed amount or flexible access to funds.

BOI Loan Against FD vs FD Premature Withdrawal

You can avail the Bank of India FD Loan if you need funds before the maturity of your deposit and save yourself from closing your deposit. The FD is still active and interest is being earned. In Bank of India FD premature withdrawal facility the deposit is closed before maturity and interest is paid for the actual period of deposit at the applicable rate which may be lower than the contracted FD rate. You can use a loan against an FD to meet your short-term needs without closing the FD.

Benefits of a Loan Against Fixed Deposit

You can access funds prior to the maturity date of the FD without withdrawing the Fund.

• FD continues to earn interest: In case of a pledged FD, it will continue to earn interest.
• Maximum loan amount: Typically, one is able to borrow up to 80%-90% of the FD value.

• Access to funds: This helps in getting the funds easily without closing your entire FD. You can get access to funds easily in case of an emergency.
• Flexible Facility: This facility is flexible and can be performed anytime, whenever you need the funds against your FD.

Limitations to Consider Before Applying

There are some drawbacks associated with Bank of India Loan Against FD which you must consider before applying.

• Your FD remains pledged as security until the outstanding loan or overdraft liability is settled and the applicable lien is released.
• There is interest to pay on the loan amount.
• Funds borrowed amount to a percentage of the FD value.
• While the loan is outstanding, you cannot withdraw or close the FD that you pledged.
• If the credit facility is a loan or similar, waiting to pay back can lead to further charges or an impact on the credit record.