What Is a Loan Against Fixed Deposit?
A Loan Against FD allows you to borrow funds from the bank using your fixed deposit as collateral — without breaking it.
It’s a secured loan and one of the most affordable credit options.
🔒 Your FD stays intact, but you get liquidity instantly.
Key Features
| Feature | Details |
|---|---|
| Type of Loan | Secured (FD is collateral) |
| Loan Amount | 75% – 95% of FD value |
| Interest Rate | FD rate + 1% to 3% |
| Credit Score Required | ❌ No |
| Processing Time | ✅ Instant to 24 hours |
| Repayment Tenure | Matches or ends before FD term |
Why Consider a Loan Against FD?
💸 Instant Liquidity without breaking your savings
📉 Lower interest than personal loans or credit cards
❌ No need for income proof or CIBIL score
✅ Easy repayment options
🔁 Available for both individual and joint FD holders
Eligibility Criteria
Must have an active FD in the bank
FD must be in your name or jointly held
Minimum FD value: ₹10,000–₹25,000 (varies by bank)
Age: 18+ years
Indian resident (NRI FDs may be considered)
Documents Required
FD Receipt / Certificate
Aadhaar Card / PAN Card
Passport-size photograph
Bank account linked with FD
How Much Loan Can You Get?
Banks usually offer:
💯 Up to 95% of FD value
💵 Example: If your FD is ₹1,00,000, loan amount may be up to ₹90,000–₹95,000
Interest Rates (2025)
| Lender Type | Rate (Approx.) |
|---|---|
| Public Banks | FD rate + 1.5% (e.g., 8.5%) |
| Private Banks | FD rate + 2%–3% (e.g., 9%–10.5%) |
| Vizzve Partners | Starting at 8.25%* |
📌 Rates may vary depending on FD term and amount.
Repayment Options
Overdraft: Interest only on amount used
Term Loan: Monthly EMI payments
Bullet Repayment: Pay full amount at maturity
Risks & Things to Note
If you fail to repay, bank may liquidate your FD
The loan cannot extend beyond your FD maturity date
Interest keeps compounding on the loan amount used
Why Choose Vizzve?
🏦 Tie-ups with top FD lenders and NBFCs
💸 Instant disbursal, low interest
🔒 No impact on your FD earnings
📲 Digital application and tracking
💬 24x7 support for gold & FD-backed loans
FAQs
Q1. Will my FD interest stop if I take a loan against it?
✅ No, your FD will keep earning interest normally.
Q2. Can I pre-close my FD after taking a loan?
⚠️ Yes, but the loan must be repaid first or settled.
Q3. Is it better than taking a personal loan?
✅ Absolutely — lower interest, quicker approval, no credit score required.
Q4. Are there any processing charges?
💼 Some banks may charge 0.5% to 1%. Vizzve can help you compare and get zero processing fee offers.
Published on : 22nd July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed