How does the interest rate on a loan against FD Compare to other loans?

Loans against Fixed Deposits (FDs) typically offer some of the lowest interest rates compared to other loans. The interest rates might  vary as per the financial institution's terms and conditions,

1. Secured Nature: Since you’re using your FD as collateral, lenders face less risk. This security allows them to offer lower interest rates, often 5-9%, depending on the financial institution and your FD amount.
2. Personal Loans: These are unsecured, meaning no collateral is needed. However, because lenders take on more risk, interest rates are usually higher, often between 10-20%.
3. Credit Cards: These carry the highest interest rates, typically 18-25%. They are convenient but expensive if balances are not paid off quickly.
4. Home Loans: While secured by your property and offering lower rates (around 6-9%), the process is more extensive than loans against FDs.
5. Business Loans: Rates vary widely based on the business’s creditworthiness but are generally higher than FD loans due to increased risk.