What is an Instant Loan Against FD Online?
An instant loan against FD (Fixed Deposit) online is a quick and hassle-free way to borrow money without breaking your deposit. Banks and NBFCs allow you to take a secured loan against your FD through internet banking or mobile apps. This option is ideal when you need urgent funds for emergencies, education, medical needs, or business. The best part is that your FD continues to earn interest while you get liquidity instantly, making it a smart financial solution for short-term cash requirements.
Key Benefits of Instant FD Loan Online
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No Need to Break FD
You don’t have to close your fixed deposit. Your savings remain intact and keep earning interest. -
Quick Disbursal
Online approval and disbursal within minutes, especially for existing customers. -
Low Interest Rates
The loan interest is just 1%–2% higher than your FD rate, much cheaper than personal loans. -
No Income Proof Needed
Since it’s a secured loan, most banks don’t ask for income documents. -
Flexible Repayment Options
Choose to repay in EMIs or as a lump sum at the time of FD maturity.
Who Can Avail Instant FD Loan?
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Individual FD holders
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Senior citizens with FDs
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Joint FD holders (with mutual consent)
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Firms and companies with corporate FDs
You must have an active FD in the same bank offering the loan facility online.
How to Apply for Instant FD Loan Online
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Login to Net Banking or Mobile App
Use your bank’s digital platform for a seamless process. -
Go to Loan Against FD Section
Choose “Loan/Overdraft against Fixed Deposit.” -
Enter Loan Amount
The system will show eligible loan amount (usually 75% to 90% of FD). -
Accept Terms & Submit
Agree to the terms, select repayment option, and submit the request. -
Loan Disbursed Instantly
The approved amount is credited to your savings or current account within minutes.
Documents Required
For existing customers, no extra documents are usually required. However, banks may ask for:
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FD account details
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Valid ID proof (Aadhaar, PAN)
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Signed digital loan agreement (in some cases)
Loan Amount and Tenure Details
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Loan Limit: 75% to 90% of FD value
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Interest Rate: FD rate + 1% to 2%
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Tenure: Up to FD maturity or as per bank terms
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Processing Fees: Usually minimal or nil for digital loans
Example: For an FD of ₹2,00,000, you can get an instant loan of up to ₹1,80,000 online.
Top Banks Offering Instant Online FD Loans
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State Bank of India (SBI)
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HDFC Bank
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ICICI Bank
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Axis Bank
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Kotak Mahindra Bank
Most of these banks offer this service 24×7 via internet and mobile banking.
When Should You Use an FD Loan?
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Emergency medical expenses
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Paying school or college fees
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Short-term business needs
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Travel or home repairs
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Avoiding early FD withdrawal penalties
Conclusion
An instant loan against FD online is a smart, secure, and affordable option to meet urgent financial needs. It helps you access liquidity without compromising your savings or returns. With fast approval, minimal documentation, and online convenience, this is one of the best ways to manage short-term cash crunches.