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How to Take Loan Against Fixed Deposit 2026
Loan Against FD - 90% of FD. Lower interest (FD rate + 1-2%). No credit check. Same day.
📁 Banking
⏱️ 30-60 mins
💰 Free Application
Visit Official Portal →
About This Guide
Loan Against Fixed Deposit (LAFD) - up to 90% of FD value. Interest: FD rate + 1-2% typically. NO credit check needed (FD itself collateral). Same-day disbursement at most banks. FD continues earning interest. Repayment flexible. Pre-closure of FD: penalty waived if loan repaid first.
Eligibility Criteria
- Existing FD holder (any age)
- Bank account same bank
- Aadhaar mandatory
- Indian resident
Documents Required
Keep these documents ready before starting application. Missing documents = delayed approval.
- FD Receipt/Online proof
- Aadhaar
- PAN
- Application form
- Photo
- Signature card update
- Loan Agreement
Step-by-Step Application Process
Follow these steps in order. Each step is critical - skip none.
Visit Bank Branch OR Online
Where FD held.
Apply Loan Against FD
Form-based.
FD Verification
Auto-fetched.
Loan Amount
Up to 90% of FD value.
Interest Rate
FD rate + 1-2% typically.
Tenure
Up to FD maturity OR self-defined.
Pay Processing Fee
₹500-2,000 (waived sometimes).
Disbursement
Same day to bank/cash.
FD Released
Post repayment.
Key Benefits
- Up to 90% of FD
- No credit check
- Same-day disbursement
- Lower interest than personal loan
- FD continues earning
- Flexible repayment
- Quick processing
- Pre-closure savings
What Happens After Application?
Same day for credit.
Frequently Asked Questions
Default consequence?
Bank breaks FD + adjusts. Outstanding becomes loan obligation. Credit score impact possible.
Multiple FDs - one loan?
YES - club multiple FDs as collateral for single loan. Higher amount possible.