Loan Against FD Calculator
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Runs entirely in your browser — your numbers never leave this page.
How it works
A loan against FD is the cheapest formal credit most people can get: typically your FD rate + 1–2%, so 8.5–9.5% when FDs pay 7.5%. No income proof, no CIBIL stress, disbursed in hours — because the bank holds your deposit as collateral.
Compare the alternatives honestly. Breaking the FD costs the lost interest plus ~1% penalty — and if rates have risen since you booked it, you rebook lower... actually you rebook at current rates, but you lose the compounding clock. A personal loan at 12–14% costs 30–50% more in interest for the same period.
The catch: you can only borrow 85–90% of the FD value, and if you default, the bank simply adjusts your deposit. For needs under a year, it is almost always the winner — run your numbers above.
Frequently asked questions
How much can I borrow against my FD?
Usually 85–90% of the FD value (including accrued interest at some banks). A ₹10L FD gets you ~₹9L.
What interest rate applies?
Typically your FD rate + 1–2%. At 7.5% FD, expect 8.5–9.5% — far below personal loan rates of 11–16%.
Does it affect my CIBIL score?
It is reported as a secured loan. On-time repayment helps your score; the enquiry impact is minimal. Default risk is low since the bank holds your FD.
Can I prepay without penalty?
Yes — loans against FD/overdrafts against deposits carry no prepayment or foreclosure charges. Pay back the day your need ends.
What happens to my FD interest?
It keeps compounding untouched. You earn 7.5% while paying ~9.5% on the loan — net cost is just the ~2% spread, not the full rate.
Is it an overdraft or a term loan?
Banks offer both: demand loan (fixed EMI) or overdraft (pay interest only on what you use). For fluctuating needs, the overdraft is cheaper — you pay only for drawn amounts.
Can I take it against an NRE/NRO FD?
Against NRO FDs, yes. Against NRE FDs, regulations restrict it — most banks decline or offer limited options. Ask your bank specifically.
What if I cannot repay?
The bank adjusts the outstanding against your FD at maturity. You lose the deposit, not your home — but your CIBIL still takes the hit.
Is the interest tax-deductible?
Only if the loan is used for a deductible purpose (e.g. business). Personal use = no deduction. The FD interest itself remains fully taxable.
Better than a credit card loan?
Enormously — credit cards charge 36–42% annually. An FD loan at ~9% costs a quarter of that. Never carry card debt when an FD loan is available.