ICICI Bank Loan Against FD

What is an ICICI Bank Loan Against FD?

ICICI Bank loan against fixed deposit lets you borrow money by pledging your fixed deposit as security. The interest rate for Standard Overdraft Against Fixed Deposit (ODFD) is the FD interest rate plus 2% for General Citizens and the FD interest rate plus 1% for Senior Citizens. This loan against FD gives you quick access to funds for urgent needs while your deposit continues to earn interest, making it an affordable and practical borrowing choice.

Key Features of ICICI Bank Loan Against FD

Below are the main features of ICICI Bank's Loan Against FD that explain how the facility works and why it is useful:

• Zero Processing Fees: ICICI Bank does not charge processing fees, making the loan against FD a cost‑effective choice.
• Customer‑Friendly Interest Rates: ICICI Bank offers overdrafts with low and reasonable interest rates. These rates are based on the ICICI Bank FD interest rates, helping FD holders get funds at a better cost.
• Penalty Charges: If you miss payments or go over the sanctioned limit, ICICI Bank charges a 5% yearly penalty on the overdue or extra amount until it’s paid, along with applicable taxes.
• Easy Documentation: ICICI Bank keeps the paperwork simple and quick, so you can easily access the facility when needed.
• Fund Transfer: Money from the Overdraft Against Fixed Deposit (ODFD) can only be moved to the linked ICICI savings account. Cash deposits or transfers via UPI, IMPS, NEFT, RTGS, or other accounts are not allowed.

How to Apply for an ICICI Bank Loan Against FD?

You can easily apply for an ICICI Bank loan against FD through online banking channels or by visiting a branch for quick assistance. Below are the steps to complete the application process.

1. Online Loan Application 

   To apply for a loan against FD online, follow these simple steps:

   • Step 1: Log in: Access ICICI Bank's iMobile or Internet Banking using your credentials.
   • Step 2: Navigate to Deposits: Go to the 'Deposits' section and select the fixed deposit you want to use.
   • Step 3: Choose Loan Facility: Select the Overdraft Against FD (ODFD) option.
   • Step 4: Enter Loan Details: Enter the necessary loan details and the amount you wish to borrow.
   • Step 5: Review and Confirm: Check the information carefully and confirm your application.
   • Step 6: Activation: Once confirmed, your overdraft will be activated instantly.

2. Offline Loan Application 

   If you prefer applying offline, here’s how to do it at your nearest ICICI Bank branch:

   • Step 1: Visit the Branch: Go to the nearest ICICI Bank branch to initiate your application.
   • Step 2: Request Loan Facility: Ask for the Overdraft Against FD (ODFD) facility.
   • Step 3: Submit Documents: Provide the required documents along with details of your FD.
   • Step 4: Complete the Application: Fill out any additional application forms required for the loan.
   • Step 5: Verification: The bank will verify the information and process your request.
   • Step 6: Loan Activation: Once verified, the overdraft facility will be activated, and you can access the loan.

Who Should Consider an ICICI Bank Loan Against an FD?

ICICI Bank Loan Against FD is particularly beneficial for the following groups:

• Individuals with Urgent Cash Needs: Suitable for meeting unexpected expenses such as medical emergencies, education fees, or sudden travel plans without disrupting your savings.
• Tax-Saving FD Holders: Customers with Tax-saving FDs, typically locked in for five years, can benefit by availing funds without closing the deposit.
• Individuals Avoiding Costly Debt: Best for customers looking to bypass high-interest personal loans or credit card debts, leveraging lower interest rates offered against their FD.
• Existing ICICI Customers: For existing ICICI FD holders, availing a loan against FD is quick and convenient via internet banking or mobile banking platforms.

Repayment Options for ICICI Bank Loan Against FD

ICICI Bank gives you simple and clear choices to repay your Overdraft Against Fixed Deposit. These options are designed to make repayment easy and convenient for every customer.

• Linked Account Only: All transfers from the Overdraft Against Fixed Deposit can be made only to the savings account linked to the FD. This ensures the facility is used securely and funds stay within the customer’s primary account.
• No Other Transfers: Transactions through UPI, IMPS, NEFT, RTGS, or to any third‑party accounts are not permitted. The overdraft can only serve the linked account for controlled usage.
• No Cash Deposits: ICICI Bank does not allow customers to deposit cash directly into the ODFD account. All repayments must be made through approved channels only.
• Use for Your FD Only: The overdraft facility is strictly linked to your fixed deposit and associated account. It cannot be used against deposits held by someone else.
• Penalty Charges: A penal interest of 5% per annum is charged on any overdue or overdrawn amount until it is cleared, along with applicable taxes.

Key Takeaways

Loan against FD ICICI Bank is a simple way to get up to 90% of your fixed deposit amount without touching your savings. It offers instant overdraft, flexible repayment, and clear rules for using the account. There are also clear penalty charges if payments are delayed. This makes it a safe option for short‑term cash needs. You can also choose an ICICI Bank credit card against FD for added flexibility.