Loan Against Fixed Deposit (FD)

1. Axis Bank Loan Against FD an be availed be in the form of overdraft
2. No prepayment charges
3. Avail up to 85% of your fixed deposit as loan
4. Interest rate: 7.00% to 11.01%
   

SBI Loan Against Fixed Deposit - Features

1. You can avail SBI Loan Against FD of up to 90% of the value of your fixed deposit
2. Loans are available in the form of overdraft and demand loan
3. No penalty for prepayment
4. The processing fees for the loan is nil
5. Loans can be availed through internet banking by visiting any branch of the bank.

HDFC Bank Loan Against Fixed Deposit - Features

1. Option to choose between a current account and savings account to link to your FD
2. HDFC Bank Loan Against FD is available in the form of overdraft
3. Interest will be charged only on the withdrawn amount while the remaining FD will continue to accrue interest
4. Avail overdraft against FD on deposit held in single name instantly through net banking
5. A minimum FD amount of Rs.25,000 for a minimum tenure of 6 months 1 day is required to avail an overdraft.

Federal Bank Loan Against Fixed Deposit - Features

1. No processing fee or penal interest charged
2. Loan can be availed against FDs, Recurring Deposits (RDs), and cash certificate
3. Loans can be obtained from any branch of Federal Bank
4. Only the deposits that are free from restraint, lien, or encumbrance will be eligible for loans

Karur Vysya Bank Loan Against FD - Features

1. The disbursement of loan is done instantly
2. Loans can be availed against any type of deposit
3. Loans of up to 90% of the deposit amount can be availed
4. Original deposit receipt needs to be submitted to avail a loan against FD

Deutsche Bank Loan Against FD - Features

1. Besides your own FD, you can avail loan against FDs held by any of your family members
2. The interest on the loans are charged only on the utilised amount
3. Competitive interest rates
4. Loans up to 95% of your FD can be availed.
5. Minimum overdraft amount: Rs.25000 
   

Eligibility Criteria for Availing Loan Against Fixed Deposit

To be eligible for a loan against FD, the basic criteria is that you must hold a fixed deposit with the bank you are availing the loan from and any of below-given individuals/entities can avail the loan:

1. Resident Indian citizens
2. Family Trusts
3. Hindu Undivided Family (HUF)
4. Clubs, societies, and associations
5. Sole proprietorships, group companies, and partnership firms

Documentation Required to Avail Loan Against Fixed Deposit (FD)

To avail a loan against fixed deposit, you will need to provide the below-given documents:

1. Application form duly signed
2. Duly signed agreement
3. Fixed/Term Deposit receipts duly discharged in favor of the bank

Please note that these may vary from lender to lender.

How to Obtain Loan Against Fixed Deposit

With a few exceptions, most lenders let you apply online for a loan against a set deposit. These include situations where you must visit the bank's closest branch. You can apply online through the websites of State Bank of India, HDFC Bank, Axis Bank, and Deutsche Bank for a loan against a fixed deposit, among other banks. You must visit the closest branch of Federal Bank in this instance. 

Features and Benefits of Loan Against Fixed Deposit

1. Lower interest rates - As your fixed deposit serves as collateral for a loan, the interest rate on these loans is lower. The interest rates on these loans are typically 2% to 2.5% lower than the interest rates on personal loans. As a result, the equivalent monthly instalments (EMIs) on these loans are cheaper as well.  
2. Minimal paperwork - These loans have a lower interest rate because the loan is secured by your fixed deposit. Compared to personal loans, these loans frequently offer interest rates that are 2% to 2.5 percent cheaper. Consequently, these loans have reduced equivalent monthly payments, or EMIs. 

1. No credit score check - Lenders will review your credit score when you apply for any form of loan before making an offer to you. But, while determining your eligibility for a loan secured by FD, your credit score or CIBIL will not be taken into account. Therefore, for those with poor or no credit, these loans may be a viable choice. 
2. The loan amount will depend on the FD amount - If you need a personal loan, the maximum loan amount will be determined by a variety of factors such as your credit score, income, tenure, and so on. In the case of a loan against FD, however, the maximum loan amount is determined by the amount of money you have put in the FD account. This means that if you have put more in your FD, you will be eligible for a larger loan.  
3. No prepayment penalty - The banks impose penalties on you because they forfeit interest when you pay off a loan early. But since banks keep their interest revenue, there is no penalty for loans made against federal debt. Rather, they benefit from it since they are spared from having to pay you interest on the loan balance.