Do Banks Offer Loans Against Fixed Deposits in India?


  • Found ineligible for a personal loan? Don't worry, you can get a loan against your fixed deposit
  • Check out the banks that offer loans against fixed deposits

Yes, you can get a loan against fixed deposits from banks in India. It’s a kind of secured loan that banks provide to its customers. It is particularly useful for those who either don’t have a credit history or a poor one. So their fixed deposits act as a security to the loan.

List of Banks Offering Loans Against Fixed Deposits in India

State Bank of India

The largest public sector bank in India is SBI and it fulfills the need of customers. So, if you have a fixed deposit in SBI and require money urgently, you can apply for a loan against the same. You can earn interest up to 6.00% and can deposit up to INR 2 crore and more. One can borrow 90% of their Fd value from the bank and pay the loan in equated monthly installments. The interest rate on loan will be 1% above the FD rate. You can take loans ranging from INR ₹25,000-5 crore, that too, without having to pay any processing fee.

Axis Bank

You can take loans against fixed deposits from one of the best private sector banks in India i.e. Axis Bank. The interest on your loan amount is 2% above your FD interest rate. So, if your FD interest is 5.60%, the loan rate would be 7.60% per annum. Axis Bank doesn’t charge any processing fee for such loans.


If you have a Fixed deposit in HDFC Bank, you can borrow against it. Whether you are an NRI or Indian resident you can apply for HDFC fixed deposit schemes. The bank provides you the desired loan amount under the overdraft facility. Using the overdraft you can borrow 90% of your FD value and interest would be 2% above the FD rate.

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ICICI Bank offers you a demand loan and overdraft facility against your fixed deposits. Using this feature of ICICI fixed deposit, you can borrow a loan whenever you need funds against the FD. You can get a maximum loan up to 90% of the FD value. The bank will charge a loan rate of 2%-3% above your FD interest rate.

Canara Bank

Canara Bank provides a fixed deposit facility to the customers. You can open the account with a deposit amount as low as 1,000 Also, a term loan can be availed against the FD. The loan can be a maximum of 90% of the FD value.

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Personal Loan Interest Rates October 2023
Fullerton India12.00% - 24.00%
HDFC Bank10.75% - 14.50%
ICICI Bank10.75% - 19.00%
IndusInd Bank10.25% - 26.00%
Kotak Bank10.99%
RBL14.00% - 23.00%
Standard Chartered Bank11.49%
Tata Capital10.50% - 24.00%
Home Loan Interest Rates October 2023
Axis Bank8.75% - 9.15%
Bank of Baroda8.50% - 10.60%
Citibank8.75% - 9.15%
HDFC8.50% - 9.40%
ICICI Bank9.00% - 9.85%
Indiabulls Housing Finance Limited8.65%
Kotak Bank8.85% - 9.40%
LIC Housing8.50% - 10.50%
Piramal Capital & Housing Finance10.50%
PNB Housing Finance8.50% - 10.95%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI9.10% - 9.65%
Tata Capital8.95% - 12.00%