What is a Quick Loan on Fixed Deposit?
A quick loan on fixed deposit is a secured loan where you can borrow money against your FD without breaking it. This option is ideal when you need urgent cash but don’t want to lose the interest earned on your deposit. The process is simple, requires minimal paperwork, and the loan is approved quickly. It’s a smart financial tool for short-term needs like medical bills, education fees, or business use, with lower interest rates compared to personal loans.
Benefits of Taking a Loan on Fixed Deposit
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No Need to Break FD: You can get a loan without closing your fixed deposit, so your interest continues to accumulate.
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Low Interest Rate: The interest charged is just 1% to 2% above the FD interest rate, much lower than unsecured loans.
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Quick Disbursal: Loan approval and disbursal are fast, especially for existing bank customers.
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No Income Proof Required: As it’s a secured loan, banks usually don’t require income documents.
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Flexible Repayment: You can repay the loan in easy EMIs or even as a lump sum, depending on the bank’s terms.
Who Can Apply for a Loan on FD?
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Any individual holding a fixed deposit in a bank or NBFC
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Joint FD holders with agreed terms
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Senior citizens with special FD schemes
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Companies or firms holding corporate FDs
Documents Required for FD Loan
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Fixed Deposit receipt or certificate
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Loan application form
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Identity proof (Aadhaar card, PAN card)
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Address proof (utility bill, voter ID, etc.)
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Passport-size photograph
(Note: For existing customers, banks may waive some document requirements.)
Loan Amount and Interest Rate
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Loan Amount: Usually 75% to 90% of the FD value
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Interest Rate: 1% to 2% higher than the FD rate
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Tenure: Loan tenure usually matches the FD maturity
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Processing Time: 24 to 48 hours in most cases
Example: If your FD is ₹2,00,000 and the bank offers 90% of it, you can get a loan of ₹1,80,000.
How to Apply for Quick Loan on Fixed Deposit
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Visit your bank’s branch or log in to the bank’s net banking portal.
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Fill in the application for loan against FD.
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Submit the required documents.
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Once approved, the amount is credited to your account.
Most banks also offer this facility via mobile apps or online banking.
Top Banks Offering Loan Against FD
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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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Punjab National Bank (PNB)
These banks offer competitive interest rates, quick approvals, and easy terms.
When to Use a Quick Loan on FD
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Emergency medical expenses
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Child’s education fee
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Business working capital
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Travel or personal needs
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Avoiding breaking FD during premature penalty
Final Thoughts
A quick loan on fixed deposit is a smart and secure way to handle short-term financial needs without disturbing your savings. With fast processing, low interest rates, and flexible repayment options, it’s a preferred choice for many. Before applying, compare terms from different banks and choose the one that suits your need.