Can You Get a Loan Against Your Fixed Deposit?
Fixed
deposits
(FDs)
are
a
popular
investment
option
due
to
their
predictable
returns
and
stability
compared
to
other
market-linked
investment
products.
However,
there
may
be
instances
when
you
need
immediate
liquidity,
even
before
your
FD
matures.
Fortunately,
many
financial
institutions
offer
loans
against
fixed
deposits.
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Loan
Against
Your
FD
A
loan
against
your
FD
can
help
you
access
the
required
funds
quickly,
with
minimal
documentation
and
typically
at
competitive
interest
rates.
Therefore,
if
you
do
not
prefer
opting
for
traditional
loans,
like
a
personal
loan,
or
have
urgent
financial
requirements,
a
loan
against
your
FD
can
be
a
great
choice.
How
Does
a
Loan
Against
Fixed
Deposit
Work?
A
loan
against
a
fixed
deposit
allows
you
to
borrow
funds
using
your
FD
as
collateral,
without
breaking
the
deposit.
Here’s
how
it
typically
works:
-
Eligibility
and
Application:
You
are
most
likely
to
be
eligible
for
a
loan
against
FD
if
you
hold
an
FD
account
with
a
bank
or
NBFC
that
offers
this
facility.
You
can
apply
online
or
at
a
branch. -
Loan
Amount:
The
loan
amount
is
usually
a
percentage
of
the
FD’s
value,
often
around
75-90%.
The
exact
limit
depends
on
the
institution’s
policies
and
the
FD
amount. -
Interest
Rate:
The
interest
rate
on
this
loan
is
generally
1-2%
above
the
FD’s
interest
rate.
This
makes
it
a
lower-cost
option
compared
to
unsecured
loans
since
your
FD
acts
as
collateral. -
Repayment
Tenure:
The
repayment
term
often
aligns
with
the
FD’s
remaining
tenure,
meaning
you
must
repay
the
loan
before
the
FD
matures.
Some
institutions
offer
flexible
repayment
terms. -
Zero
to
Minimal
Processing
Fee
or
Penalty
for
Prepayment:
Many
banks
and
NBFCs
charge
little
or
no
processing
fee,
and
some
waive
prepayment
penalties,
making
this
a
convenient
loan
option
if
you
repay
it
early. -
No
Impact
on
FD:
Your
FD
remains
intact,
continuing
to
earn
interest
as
usual.
You’ll
only
face
consequences
on
your
FD
if
you
default
on
the
loan
repayment,
in
which
case
the
financial
institution
may
liquidate
your
FD
to
recover
the
outstanding
amount.
Things
to
Keep
in
Mind
before
Applying
for
a
Loan
Against
Fixed
Deposit
Before
you
apply
for
a
loan
against
FD,
keep
the
following
points
in
mind:
-
Understand
the
Terms
and
Conditions:
Carefully
review
the
terms
and
conditions
of
the
loan,
including
interest
rates,
processing
fees,
and
repayment
terms. -
Compare
Offers:
Explore
offers
from
different
financial
institutions
to
find
the
best
deal. -
Consider
the
Impact
on
Returns:
While
a
loan
against
FD
can
provide
immediate
liquidity,
it
may
impact
your
overall
returns
on
the
FD.
By
understanding
the
nuances
of
this
type
of
loan,
you
can
make
informed
decisions
and
leverage
this
financial
tool
to
meet
your
immediate
needs
without
compromising
your
long-term
investment
goals.
Why
Open
Shriram
Unnati
Fixed
Deposit?
Shriram
Unnati
Fixed
Deposit
is
a
dependable
choice
of
investment
with
a
range
of
compelling
features
and
benefits.
It
is
designed
to
meet
the
wide
spectrum
of
financial
goals
and
aspirations
of
investors.
-
Compelling
Interest
Rates:
Shriram
FD
offers
an
interest
rate
of
up
to
9.40%*
p.a.
(inclusive
of
0.50%*
p.a.
for
senior
citizens
and
0.10%*
p.a.
for
women
depositors),
making
it
a
wise
choice
of
investment
for
people
from
different
demographics. -
Affordable
Minimum
Investment
Amount:
Investors
can
start
their
journey
with
Shriram
Fixed
Deposit
with
an
investment
amount
as
low
as
₹5000
increasing
in
multiples
of
₹1000.
This
makes
it
accessible
to
a
wide
range
of
investors
with
different
financial
profiles. -
High
Credit
Ratings:
Shriram
Finance
is
rated
“[ICRA]AA+
(Stable)”
by
ICRA
and
“IND
AA+/Stable”
by
India
Ratings
and
Research,
making
its
FD
a
reliable
investment
tool
in
the
market. -
Cumulative
and
Non-Cumulative
Schemes:
Investors
can
opt
between
a
cumulative
or
non-cumulative
FD
scheme,
enabling
them
to
have
more
control
over
their
payout
options.
With
a
non-cumulative
scheme,
investors
can
choose
from
monthly,
quarterly,
half-yearly
and
yearly
payout
options
and
enjoy
a
steady
flow
of
income.
A
cumulative
scheme
can
help
investors
maximise
their
returns
on
maturity. -
Flexible
Tenure
and
Easy
Liquidity:
Shriram
Finance
offers
a
variety
of
tenure
options
on
Shriram
Unnati
Fixed
Deposit,
allowing
investors
to
choose
terms
that
best
suit
their
short-term
or
long-term
financial
goals.
Investors
also
enjoy
easy
liquidity
on
their
FD
with
a
diverse
range
of
payout
options.
Conclusion
Opting
for
a
loan
against
FD
is
a
smart,
flexible
solution
for
individuals
seeking
immediate
funds
without
disrupting
their
investment
portfolio.
This
form
of
secured
loan
is
an
ideal
choice
for
those
who
need
temporary
liquidity
while
maintaining
their
savings
strategy.
With
its
ease
of
access
and
minimal
documentation,
a
loan
against
FD
stands
out
as
a
valuable
financial
tool
for
both
planned
and
unplanned
expenses.
About
Shriram
Finance
Shriram
Finance
is
a
leading
diversified
financial
services
company
in
India,
offering
a
wide
range
of
financial
products
and
services
across
consumer,
wholesale,
and
business
finance
segments.
The
company
has
a
strong
presence
pan
India
with
a
network
of
3,149
branches
and
an
employee
strength
of
77,764
with
an
AUM
of
Rs.
2,430,40
crores.
With
a
focus
on
financial
inclusion
and
customer-centricity,
Shriram
Finance
continues
to
empower
individuals
and
businesses
to
achieve
their
financial
goals.
Disclaimer
With
regards
to
deposit-taking
activity
of
Shriram
Finance
Limited
(’SFL’),
viewers
may
refer
to
detailed
information
and
T&C
provided
in
our
application
form
available
at
www.shriramfinance.in/downloads.
The
Company
is
having
a
valid
Certificate
of
Registration
dated
31st
January
2023
issued
by
the
Bank
under
section
45-IA
of
the
RBI
Act.
However,
the
Reserve
Bank
of
India
does
not
accept
any
responsibility
or
guarantee
about
the
present
position
as
to
the
financial
soundness
of
the
company
or
for
the
correctness
of
any
of
the
statements
or
representations
made
or
opinions
expressed
by
the
company
and
for
repayment
of
deposits/discharge
of
the
liabilities
by
the
company.