Loan Against FD Calculator
Loan Against FD
Break FD or Take Loan?
Calculate exact loan amount, interest cost & EMI. Compare with breaking FD penalty. Find which option saves you more money — instantly.
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🏦 Loan Against FD Details
What is Loan Against FD?
A smarter alternative to breaking your Fixed Deposit — get cash without losing FD interest.
How It Works
You pledge your FD as collateral to the bank. The bank gives you a loan of up to 90% of FD value. Your FD continues to earn interest. You repay the loan with interest. When you repay, the FD lien is removed.
Example: ₹5 lakh FD at 7% → Loan of ₹4.5 lakh at 9% → Net cost = just 2% (9% loan − 7% FD earning)
Why Choose This Over Personal Loan?
- Rate: 8-9% vs 11-24% for personal loan
- Approval: Instant — same day
- Documents: Just FD receipt + KYC
- No income proof required
- No credit score check
- No prepayment penalty
- FD continues earning interest
When to Break FD Instead
- Need money for very long term (> FD tenure)
- Need full FD amount (loan gives only 75-90%)
- Bank’s premature withdrawal penalty is 0%
- FD has very less time remaining (< 3 months)
- You won’t be able to pay loan EMIs
Which FD Types Are Eligible?
- Regular FD — fully eligible
- Senior Citizen FD — eligible
- NRE FD — eligible at most banks
- Corporate FD — depends on bank
- NOT eligible: Tax Saver FD (5-yr lock-in)
- NOT eligible: Joint FD where you are secondary holder
Frequently Asked Questions
What is loan against FD?▼
Loan against Fixed Deposit is a secured loan where you pledge your FD as collateral and get 75-90% of FD value as cash without breaking the FD. Your FD continues earning interest while you use the loan money. Interest rate is 1-2% above your FD rate.
Is it better to break FD or take loan?▼
Taking a loan is usually better for short-term needs (under 12 months). Breaking FD costs 0.5-1% penalty plus you lose future interest. Loan costs only 1-2% above FD rate. Use our “Break vs Loan” tab above to compare for your exact situation.
What is the interest rate on loan against FD?▼
Interest rate = Your FD rate + Bank margin. PSU banks (SBI, BOB) charge FD rate + 1%. Private banks (HDFC, ICICI) charge FD rate + 2%. If your FD earns 7%, loan rate is 8-9%. Since FD continues earning, net effective cost is just 1-2%.
Can I get loan against FD without income proof?▼
Yes! No income proof, ITR, or salary slips needed. Since your FD is the security, banks approve instantly with just FD receipt + Aadhaar + PAN. Even retired persons, homemakers, or students can get this loan.
What is overdraft against FD?▼
Overdraft (OD) against FD is like a credit limit — you get a linked account from which you can withdraw up to your approved limit any time. You pay interest only on the amount used, not the full limit. Best for irregular cash needs. Most flexible option.
What happens if I don’t repay loan against FD?▼
If you fail to repay, the bank will adjust the outstanding loan amount from your FD maturity amount. Your FD is the security — the bank will deduct dues from it. This will also be reported to CIBIL and affect your credit score.