Know Everything About Car Loan Against Fixed Deposit

Have you ever heard of car loan against fixed deposit (FD), which is a common mean of saving the money. Most of us would only be knowing about the interest they can earn on fixed deposit. But to your surprise, you can get car loan against FD from many banks like ICICI Bank, Axis Bank, HDFC Bank, SBI, etc.

How much car loan you can get against FD?

The bank sees car loan as demand loan or overdraft against your fixed deposit. You can get car loan up to 90% of the total value of your Fixed Deposit.


  • Rate of interest on car loan against fixed deposit is much lower compared to when you take a normal loan to buy your dream car
  • As loans against fixed deposits are known to be secured loans, interest rate on car loan against fixed deposit gets lowered by 2-2.5% compared to the normal one
  • You can get away with processing fee for this kind of loan from most banks in India
  • You have the option to choose the repayment tenure. But make sure it is beyond the maturity period of your fixed deposit
  • This type of car loan will ensure you get money without breaking your FD or paying higher EMIs compared to normal loan

Hassle-free application process

The application process of car loan against the fixed deposit is quite simple and you do not have to submit many documents as banks have the necessary information with them. But you are required to submit the fixed deposit receipt while forwarding the car loan application.

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Loan Repayment

You can get a flexible EMI repayment plan on your loan amount. But some banks will allow you to pay the lump sum amount as well when you have the funds to do so. Also, you can check for any special offer on car loan against fixed deposit.

Important things to be kept in mind

  • If you have a joint fixed deposit account, then the other individual will have to sign the documents for car loan
  • Banks have the option to close your FD to recover the loan amount if you fail to repay it
  • Car loan tenure can’t be more than the the maturity period of fixed deposit
  • You can get car loan up to 90% of the total value of your fixed deposit

Personal Loan Interest Rates January 2018
Bajaj Finserv 10.99% - 16.00%
Fullerton India 14.00% - 33.00%
HDFC Bank 10.99% - 20.70%
ICICI Bank 10.99% - 18.40%
IndusInd Bank 12.99% - 20.00%
Kotak Bank 10.99% - 17.99%
RBL 14.00% - 18.00%
Standard Chartered Bank 10.99% - 14.49%
Tata Capital 11.49% - 18.00%
Home Loan Interest Rates January 2018
State Bank of India/SBI 8.30% - 8.60%
HDFC 8.35% - 8.95%
Bank of Baroda 8.30% - 9.30%
LIC Housing 8.35% - 8.70%
PNB Housing Finance 8.35% - 8.70%
ICICI Bank 8.35% - 8.85%
Axis Bank 8.40% - 8.80%
Citibank 8.60% - 9.35%
Indiabulls Housing Finance Limited 8.35% - 8.55%
Kotak Bank 8.40%
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