Loans Against Deposit

Loan against FD (Fixed Deposit) is a type of secured loan in which customers can pledge their fixed deposit as security and get some amount in terms of loan. The amount of the loan is subjected to the FD deposit amount. This can go up to 90% – 95% of the deposit amount.

Who is Eligible for this Loan Against Deposit?

  • Loan against fixed deposits can be availed by all fixed deposit holders being it individual holders or with joint accounts.
  • If the FD is on minor name, then this loan against FD will not be eligible.
  • Investors of a 5-year tax-saving FD also not eligible for this type of loan.

Benefits of Loan Against Deposits:

  • It is having Low interest rates when compared to other loans like personal loans
  • No need to break FD and go for premature withdrawal resulting in loss of interest on FD
  • No processing fees.
  • Loans against deposit can be availed against domestic as well as NRI FDs

Eligibility for Loan Against Deposits:

To be eligible for a loan against deposits, the very basic rule is that one should hold a fixed deposit with the bank that he/she are availing the loan from and any of below-given individuals/entities can avail the loan:

  • Resident Indian citizens
  • Family Trusts
  • Hindu Undivided Family (HUF)
  • Clubs, societies, and associations
  • Sole proprietorships, group companies, and partnership firms

Disadvantages of Loan Against Deposit:

  • If a borrower is unable to facilitate the loan, the bank or financial institution has the complete rights to foreclose the fixed deposit to recover the money lent.
  • The tenure of the loan given against the FD should not be more the remaining tenure of the fixed deposit.

*Terms & Conditions

SafeMACCS Loans Against Deposit


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