Frequently asked questions
Loan against Fixed Deposit (FD) is a type of secured loan where you get a loan by keeping your Fixed Deposit as security. Till the time loan is not repaid, the FD remains lien marked in favor of BFL. The loan can be availed against deposit only after the expiry of 3 months from the date of Fixed Deposit acceptance.
Customers can use their fixed deposit as security for a loan against their FD (Fixed Deposit), which is a sort of secured loan. The amount of the FD deposit determines the loan's amount. This may equal as much as 75% of the deposit sum.
All customers who have completed 3 months from the date of deposit, are eligible for loan against fixed deposit with Bajaj Finance.
When a customer requests a loan against a fixed deposit, Bajaj holds the FD as collateral. The customer is charged an interest which is 2% over FD rate.
You are not required to pay any EMI during the tenure of the loan. The loan amount along with the interest is adjusted from the maturity amount of the fixed deposit.
You enjoy the following perks and benefits:
- Low interest rates
- No processing fees
- No need to break your investment or go for a premature withdrawal
- No loss of interest earned on your FD
- Quick loan disbursement
- Minimal paperwork and faster approvals
- No foreclosure or part-prepayment charges
The rate of interest on your loan against a fixed deposit is 2% p.a. above the deposit interest rate.
For example, if you have an FD of Rs. 1 lakh for 12 months at an ROI of 7%p.a., then Annualised ROI for a loan against fixed deposit would be 9% p.a.Moreover, the tenure for your loan will be the remaining maturity period of your Fixed Deposit against which loan has been applied for.
The maximum loan amount you can avail is as follows:
- For a cumulative Fixed Deposit (FD), you can get a loan of up to 75% of your FD's principal amount
- For a non-cumulative Fixed Deposit (FD), you can get a loan of up to 60% of your FD's principal amount
You can apply for an LAFD only if your Fixed Deposit has completed 3 months from its booking date. To apply now, please follow these steps:
In case of deposit having sole holder, you can apply online on our customer service portal My Account
- Click on “My Relations” and then on the deposit against which you wish to avail the loan
- Enter the required loan amount
- Verify your pre-filled bank account details
- Proceed to generate and enter OTP send to your registered mobile no.
Also, the loan amount will be credited to your bank account within 24 hours.
In case of deposit having more than 1 holders, you have to apply offline -
- You need to approach your nearest BFL branch.
- On the back of the FDR, please affix a Re.1 revenue stamp and all holders to sign across.
- You need to fill in the LAFD application form available in our branches
- Please submit the FDR and the application form to the cashier in the branch
The loan amount will be credited to your bank account within 24 hours.
The eligibility criteria for loan against fixed deposit with Bajaj Finance are:
- Resident Individuals (except foreign citizens, persons of Indian origin and NRI) over 18 years
- Hindu Undivided Family (HUF)
- Sole Proprietorship
- Partnership Firms
- Companies including group companies
- Club, Association and Society
- Family Trust (except charitable trusts)
To apply for loan against fixed deposit, click on the ‘Apply’ button on the page. You will be redirected to our form, where you will have to fill your personal details and the value of your deposit.
Once all your details have been verified through an OTP, sent on your phone, our representative will contact you for further processing of your application.
Through the loan against fixed deposit by Bajaj Finance, you can get a pre assigned loan of up to Rs. 4 Lakh per deposit.
The documents required to apply for loan against fixed deposit with Bajaj Finance are:
- One Recent photograph
- PAN or Form 60 if PAN is not allotted
- Certified Copy of one of the Officially Valid Documents (OVDs).
A loan against fixed deposit is a type of loan offered by banks and financial institutions, where a borrower can pledge their fixed deposit as collateral to obtain a loan. Here are some of the features of a loan against fixed deposit:
a. No EMI
b. Zero foreclosure charges
c. Competitive interest rate
d. Flexible tenure option
e. Higher loan offline through BFL branches
A loan against fixed deposit is a type of loan that allows individuals to borrow money by pledging their fixed deposit as collateral. Here are some benefits of taking a loan against fixed deposit:
- Lower interest rates: Since the loan is secured, lenders usually offer lower interest rates compared to unsecured loans. The rate of interest on your loan against a fixed deposit is 2% p.a. above the deposit interest rate.
- There is no need to prematurely withdraw and break the FD.
- There are no processing costs.
- No EMI is required; the loan amount and all interest owing will be deducted from the FD maturity income.
- Multipurpose use: The funds obtained through a loan against fixed deposit can be used for various purposes like funding a business, purchasing a property, financing education.
If you have invested in a fixed deposit, you can apply for a loan against fixed deposit with Bajaj Finance. Against the fixed deposit you can get loan up to 75% of principal in case of cumulative, and up to 60% of principal in case of non-cumulative.
You can apply for loan against fixed deposit by clicking on the ‘Apply’ button on this page. Fill in your personal details, and the value of your investment amount. Accordingly verify your details through an OTP.
You can also apply for loan against fixed deposit offline through BFL branches.
A loan against fixed deposit (FD) is a type of loan that allows you to borrow money by using your FD as collateral. In other words, you can take a loan against the amount you have deposited in your FD without breaking it.
The amount you can borrow depends on the amount you have deposited in your FD. Typically, you can borrow up to 75% of principal in case of cumulative, and up to 60% of principal in case of non-cumulative.
The interest rate on the loan is usually lower than other types of personal loans because the FD acts as collateral, which reduces the lender's risk.
The tenure of the loan is usually the remaining period of your FD, and you can choose to pay back the loan in installments or in a lump sum at the end of the tenure.
If you are unable to repay the loan, the lender can use your FD as collateral and withdraw the amount owed from it. Therefore, it is important to repay the loan on time to avoid losing your FD.
Overall, a loan against FD is a convenient option for those who need immediate funds but do not want to break their FD. It is also a good option for those who may not qualify for other types of loans due to poor credit history or other reasons.
