{"id":54622,"date":"2026-08-12T14:22:46","date_gmt":"2026-08-12T08:52:46","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=54622"},"modified":"2026-08-12T14:22:48","modified_gmt":"2026-08-12T08:52:48","slug":"loan-against-fixed-deposit","status":"publish","type":"post","link":"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/loan-against-fixed-deposit\/","title":{"rendered":"Loan against fixed deposit: Interest rates, benefits & how it works"},"content":{"rendered":"\n

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A loan against fixed deposit is a secured loan that uses your fixed deposit as collateral. You are typically allowed to borrow between 75% and 95% of your investment value, depending on the lender\u2019s policy. The loan can be taken for different purposes and usually comes with lower interest rates compared to unsecured personal loans.<\/em><\/strong><\/p>\n\n\n\n

A loan against fixed deposit is a loan you can take by pledging your fixed deposit with the lender while allowing your investment to continue earning interest throughout the tenure.<\/p>\n\n\n\n

If you have ever wondered, \u201cCan I take a loan against my fixed deposit?\u201d, the answer is yes. A loan against fixed deposit allows you to access funds in times of need without breaking your investment.<\/p>\n\n\n\n

This guide explains what a loan against a fixed deposit is, how it works, the loan against fixed deposit interest rate, the loan amount you can get, its benefits and disadvantages, and the different types of loans you can avail of against your fixed deposit.<\/p>\n\n\n\n

What is a loan against fixed deposit and how does it work?<\/strong><\/h2>\n\n\n\n

A loan against fixed deposit is a secured loan where your fixed deposit acts as collateral with the lender. Instead of breaking your fixed deposit, you pledge it to borrow some percentage of the deposit value. The lender places a lien on your fixed deposit until you repay the outstanding loan amount, while your investment continues to earn interest as per its original terms.<\/p>\n\n\n\n

You can repay the loan through Equated Monthly Installments (EMIs) or by using the overdraft facility<\/a>, if available. Once done, the lien is lifted, and you regain full access to your fixed deposit.<\/p>\n\n\n\n

Learn More – Loan Against Securities<\/a><\/p>\n\n\n\n

What is the loan against fixed deposit interest rate?<\/strong><\/h2>\n\n\n\n

The loan against fixed deposit interest rate is generally lower than the interest rate charged by unsecured personal loans because your fixed deposit serves as collateral. Most lenders typically charge an interest rate that is 1% to 2% higher than your fixed deposit interest rate, although the exact rate varies across lenders and the type of fixed deposit.\u00a0<\/p>\n\n\n\n

For instance, if your fixed deposit earns 5% interest per annum, you can typically obtain a loan at 6% to 7% per annum.<\/p>\n\n\n\n

Check – Loan Against Securities Interest Rates & Charges<\/a><\/p>\n\n\n\n

Loan amount against fixed deposit: How much can you get?<\/strong><\/h2>\n\n\n\n

If you are wondering, “<\/strong>Can I take a loan against my fixed deposit,and how much can I get? “, the loan amount typically depends on the value of your fixed deposit and the lender’s policy. Most banks and financial institutions offer 75% to 90% of the fixed deposit value as the loan amount. Some lenders may also sanction up to 95%, depending on their Loan-to-Value (LTV) ratio.<\/p>\n\n\n\n

These figures are indicative and vary across lenders. However, the loan amount cannot exceed the value of your fixed deposit in any case. <\/p>\n\n\n\n

What are the benefits of a loan against fixed deposit?<\/strong><\/h2>\n\n\n\n

A loan against fixed deposit offers several benefits, such as:<\/p>\n\n\n\n