What Is the Maximum Loan Amount I Can Get Against My Fixed Deposit?

When considering borrowing against your fixed deposit (FD) in India, the maximum loan amount usually depends on key factors tied to your deposit’s value and the financial institution’s policies. Generally, Non-banking Financial Companies (NBFCs) or banks allow you to borrow up to 90-95% of the FD’s value.

However, the amount can vary based on the financial institution’s guidelines, your FD's period, and the loan's interest rate. Some might offer slightly less depending on risk factors or the terms attached to the FD. Another consideration is that the interest rate on an FD loan is often lower than unsecured personal loans but slightly higher than the interest your FD earns.

It’s also important to note that because the FD serves as collateral, the approval process is quicker, with minimal credit checks. The financial institution ensures that the loan amount does not exceed the deposited amount to safeguard against potential defaults. This setup provides a convenient, secure way to access funds without disturbing your long-term savings.