Know your loan against fixed deposit
When you invest in our fixed deposit (FD), we provide you with the additional facility to apply for a loan against your invested amount.
However, you can apply for a loan against your fixed deposit (LAFD) once your deposit completes the three months lock-in period.
Get a high-value loan against your fixed deposit. If you’ve opted for a cumulative FD, you’ll get a loan of up to 75% of your principal amount. In the case of a non-cumulative FD, you can borrow up to 60% of the principal amount.
If you opt for a loan against fixed deposit, you don’t need to pay any EMIs. Your loan amount, along with the interest, gets adjusted against the FD amount at the time of FD maturity.
Who can apply for a loan against FD?
- Indian residents: Only Indian citizens who hold a valid Bajaj Finserv FD can apply for a loan against their deposit.
- Minimum FD value: The FD should meet Bajaj Finserv’s minimum deposit amount criteria to be eligible for a loan. The FD must remain active during the loan tenure.
- Individuals and businesses: Both individual account holders and corporate entities who have FDs with Bajaj Finserv can apply for this loan.
- Age requirement: Applicants must be 18 years or older. Minors holding FDs cannot directly apply, but their guardians may avail of the loan on their behalf.
- Joint FD holders: In the case of a joint FD, the primary holder must initiate the loan application.
- Pre-existing customers: Existing FD holders with a good track record of timely payments are preferred for quicker approvals.
This loan facility allows borrowers to maintain their FD while using its value as collateral.
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Features of a loan against fixed deposit
- You do not have to go through lengthy paperwork to get our loan against fixed deposit.
- Getting our loan against fixed deposit is easy as we offer a quick disbursal time of just 24 business hours*.
- You can foreclose your loan against fixed deposit anytime before FD maturity by raising a request or visiting any of our branches.
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You can check your loan against fixed deposit details by visiting our customer portal – My Account. Click on the respective link at the top of this page to know more.
*Terms and conditions apply
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Check your LAFD details
Sign-in to our customer portal to view your loan against fixed deposit details.
FAQs -
Yes, you can take a loan against your fixed deposit (FD). Bajaj Finserv offers this facility, allowing you to borrow up to 75% of your FD value. It enables you to access funds without breaking the FD while continuing to earn interest on it.
The interest rate for a loan against a fixed deposit is typically 1-2% higher than the FD interest rate. With Bajaj Finserv, you can benefit from competitive rates, making this a cost-effective borrowing option compared to unsecured loans like personal loans or credit cards.
The main disadvantage of a loan against an FD is that the loan amount is limited to the FD’s value, which may not be sufficient for larger financial needs. Additionally, if you default, your FD could be liquidated to recover the loan amount, losing potential future interest earnings.
An overdraft (OD) against FD can be a good option for short-term liquidity needs as it offers flexible withdrawals and interest is charged only on the utilised amount. It’s particularly useful when you require recurring access to funds, but it might not be ideal for long-term or large expenses.
