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Post Office Loan Against FD
A loan against FD allows you to borrow up to 90% of your fixed deposit amount, so you can handle your urgent financial requirements without closing your FD. However, India Post currently does not officially offer a loan against FD facility. If you are looking for this option, you can explore similar facilities offered by banks or NBFCs across India.
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- Post Office Loan Against FD
What is a Post Office Loan Against FD?
A loan against FD lets you borrow money up to 90% of the deposit amount by using your fixed deposit as security, without breaking it. However, India Post does not currently offer this facility on its official website. You can look for other options if you are interested in this loan against FD facility, as several banks and NBFCs in India provide this service with competitive fixed deposit interest rates.
Loan Against FD Feature By Top Banks in India
Here are the top public and private sector banks having a loan against FD feature for their customers:
| Bank Name | Feature |
| SBI Loan Against FD | Avail a minimum loan amount of ₹5,000 up to a maximum of 90% of the FD value |
| Punjab National Bank Loan Against FD | The minimum loan amount is ₹25,000 and a maximum of ₹50 lakh with no processing and repayment facility. |
| Bank of Baroda Loan Against FD | You can avail a loan or overdraft facility of up to 95% of FD value with a minimum deposit of ₹5,000. |
| ICICI Bank Loan Against FD | Up to 90% of your FD value, with 2% to 3% higher than the FD. |
| Canara Bank Loan Against FD | Borrow up to 90% of your FD value with nominal processing fees and the flexibility to repay anytime in EMIs or a lump sum. |
| Axis Bank Loan Against FD | Avail up to 85% of your FD value with a minimum loan amount of ₹25,000 and zero prepayment charges. |
| Federal Bank Loan Against FD | Minimum loan amount of ₹5,000 up to a maximum of 90% of the deposit value with no processing fees. |
Key Features of Loan Against FD
A loan against FD has a number of benefits, and thus it is an effective option for those people who require funds urgently. Some of these include:
- Interest Only on Borrowed Amount: Interest is charged only on the amount you borrow, not on the full value of the FD. This makes it a cost-effective option.
- Fast Disbursement of Loans: When your loan against FD is granted, the loan is disbursed within a very short period of time. It is suitable to meet immediate financial needs such as medical bills, school fees, or to have the capital for your business.
- No Need to Close Your FD: It is one of the major benefits that you do not need to close your Fixed Deposit to take the loan. The FD is still intact, and it keeps on earning interest throughout the loan period.
- Easy Documentation: The application process is simplified and not accompanied by complex documentation. In most cases, you just have to provide your ID evidence and FD slip.
- Automatic Settlement of FD Maturity: In case your FD matures, the entire balance in your loan will be cleared automatically through FD proceeds, which would save you the burden of clearing the loan by yourself.
Who Should Consider a Loan Against an FD?
A loan against FD facility fits several types of customer profiles who are:
- Cash Requirements in the Short Term: It allows customers to address their personal or medical crisis, education, or travel requirements without having to intervene with their savings.
- Small Business Owners: Small business owners or self-employed business people can use the FD loan to fund operations, working capital, or immediate needs.
- People Who Seek Low-rate Borrowing: The option is commonly linked to a lower lending rate than that of unsecured loans.
Key Takeaways
A loan against FD is a convenient way to access funds using your fixed deposit as security, without breaking it. However, India Post does not currently offer this facility on its official website. If you need a loan against FD, there are various top banks, public and private or NBFCs across India, where you can get the offer of up to 90% of the FD value as a loan, along with attractive FD interest rates.
FAQs
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Is it possible to borrow online loans through the Post Office using my FD?
No, you can not borrow money with your FD, as the Post Office does not provide this facility. -
What papers are needed to apply for online loans against FD?
Banks and NBFCs that provide this facility typically require basic documents such as your ID proof (Aadhaar or PAN card), your FD receipt or deposit details, and a duly filled loan application form, which can usually be submitted through the bank's net banking portal or mobile app. -
Is it better to break FD or take a loan against FD?
Taking a loan against FD is generally better if you need temporary liquidity. It allows your investment to continue earning interest, and avoids premature withdrawal penalties. Breaking the FD is ideal for permanent financial needs where you want to clear a liability entirely and avoid ongoing interest charges.
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Shivalik Small Finance Bank loan against FD lets you borrow˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)
** Fixed deposit rate applicable for 5 year's 1 day to
10 years for investment amount less< 2 Crore ( Not for senior citizens).
*** PPF interest rate applicable for 15 years
for investment amount upto 1.5 Lac
+ Trad plans with a premium above 5 lakhs
would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
##The Guaranteed Returns are dependent on the policy term and premium term availed along with other variable factors. 7.4% rate of return is for an 18-year-old, healthy male for a policy term of 20 years and a premium term of 10 years with ₹5,00,000 annually installment premium. All plans listed here are from insurance companies’ funds.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ