Loan Against FD Calculator
Calculate your monthly EMI and true net cost of borrowing against your Fixed Deposit — including how much interest your FD keeps earning. Compare against breaking the FD prematurely.
Fixed Deposit Details
SBI 7.1% · HDFC 7.4% · Post Office 7.5% (as of 2025)
FD Maturity Value
₹6.16 L
Interest earned: ₹1.16 L (compounded quarterly)
Loan Details
Max eligible: ₹4.50 L (90% of FD)
Typically FD rate + 1–2%. SBI charges FD rate + 1%.
Must not exceed FD maturity date
Rate deducted if FD is broken early (typically 0.5–1%)
Loan Repayment Summary
Net Effective Monthly Outgo
₹10,806/mo
= ₹13,705 EMI − ₹2,900 FD interest earned/mo
Bank collects ₹13,705/mo as EMI
FD earns back ₹2,900/mo
Your pocket feels only the difference
Gross EMI (bank)
₹13,705
for 24 months
Total Paid
₹3.29 L
principal + interest
Total Loan Interest
₹28,930
cost of the loan
FD Interest Earned
₹74,441
during 24-month loan
FD earnings cover the loan cost
Your FD earns ₹74,441 during the loan period vs ₹28,930 loan interest — the FD income offsets the loan cost.
Effective Borrowing Cost
2.0% p.a.
= 9% loan − 7% FD
Net Cost
−₹45,511
over loan tenure
FD Covers Loan By
Month 1
FD interest = loan interest
Loan Against FD vs Breaking FD
| Factor | Loan Against FD | Break the FD |
|---|---|---|
| FD continues earning | ✓ Yes | ✗ No |
| Interest earned during loan period | ₹74,441 | ₹60,000 (penalised) |
| Interest you pay | ₹28,930 | ₹0 (no loan needed) |
| Premature withdrawal penalty | None | 1% rate cut |
| FD maturity benefit lost | None | ₹55,720 (lost interest) |
| Monthly EMI burden | ₹13,705/mo | ₹0/mo |
| Net cost of accessing funds | You gain ₹45,511 | ₹55,720 opportunity cost |
Breaking FD: you no longer need to repay, but you give up future FD compounding and pay the penalty.
Year-by-Year Breakdown
| Year | FD Value | Loan Balance | EMI Paid (Cum.) | Interest Paid (Cum.) |
|---|---|---|---|---|
| Year 1 | ₹5.36 L | ₹1.57 L | ₹1.64 L | ₹21,185 |
| Year 2 | ₹5.74 L | ₹0 | ₹3.29 L | ₹28,930 |
| Year 3 | ₹6.16 L | Paid off | ₹3.43 L | ₹28,930 |
How Loan Against FD Works in India
Maximum Loan Amount
Most Indian banks lend 70–90% of your FD value. SBI and HDFC offer up to 90%, while smaller banks may cap at 75%.
Interest Rate
Banks charge FD interest rate + 1–2%. SBI charges exactly FD rate + 1%. So if your FD earns 7%, the loan rate is 8%.
No Credit Score Required
Since the FD is the collateral, your CIBIL score does not matter. Processing is faster — usually within 24 hours.
FD Continues to Earn
Your FD is marked as collateral but keeps compounding interest at the original rate throughout the loan tenure.
Loan Tenure
Loan tenure cannot exceed FD maturity date. You can take a shorter loan and repay before FD matures — FD is then released.
When It Makes Sense
Best for short-term liquidity needs. At only 1–2% net cost, it is cheaper than personal loans (12–18%) or credit card loans (36–42%).
Frequently Asked Questions
What is a loan against FD in India?
A loan against Fixed Deposit (FD) is a secured loan where your FD is used as collateral. The bank lends 70–90% of your FD value at an interest rate that is typically FD rate + 1–2%. Your FD continues to earn interest during the loan period. It is ideal for short-term liquidity needs without breaking the FD.
What is the interest rate on loan against FD in India?
Indian banks typically charge FD interest rate + 1–2% for loans against FD. SBI charges exactly FD rate + 1%. So if your FD earns 7%, you pay 8% on the loan. This makes it much cheaper than personal loans (12–18%) or credit cards (36–42%).
Is it better to break FD or take loan against FD?
Taking a loan against FD is usually better than breaking it if: (1) your FD has significant time left to maturity, (2) you need funds for a short term, and (3) the loan amount is smaller than the FD. Breaking an FD attracts a 0.5–1% penalty on the interest rate, and you lose future compounding. The net cost of a loan against FD is just 1–2% per year.
What is the maximum loan I can get against my FD?
Most Indian banks offer 70–90% of the FD amount as a loan. SBI offers up to 90%, HDFC Bank up to 90%, ICICI Bank up to 90%, and smaller cooperative banks may cap at 70–75%. The loan tenure cannot exceed the FD maturity date.
Does my CIBIL score matter for loan against FD?
No. Since the FD acts as collateral, banks do not check your CIBIL credit score. This makes loan against FD ideal for people with low or no credit history. Processing is fast — usually within 24 hours — as it is a fully secured loan with minimal documentation.