Loan on Fix Deposit(FD)

A loan against a fixed deposit (FD) is a secured loan that lets you borrow money using your fixed deposit as collateral. It’s a good option for urgent financial needs.

How it works:
You can borrow a percentage of your FD amount, usually up to 90%.
The bank charges interest on the amount you borrow.
You can repay the loan before the FD matures.
The bank holds the FD as collateral until you repay the loan.

Benefits:
You can access funds without breaking your FD.
You can continue to earn interest on your FD while using the loan.
You don’t need a credit check.
There’s usually no prepayment penalty for closing the loan early.

How to apply Go to bank’s website, Find the section on fixed deposits, Select the option for a loan against your FD, and Provide the required information.