Loan Against FD Interest Rates 2025-2026 – Bank-Wise Comparison

A loan against FD allows you to access funds often at a lower interest rate and with better terms than unsecured loans like personal loans. The approval comes more easily as the FD pledging adds a safety net for the lenders. Typically, the loan against FD interest rate is decided based on the FD interest rate itself. 

Here, we are going to explore the top loan against fixed deposit interest rate offered by different banks and the factors influencing the interest rate.

What is a Loan Against Fixed Deposit? 

A loan against FD is a secured loan, meaning your FD acts as the security. Because the bank is holding your money as security, the risk is low for them. That’s why this loan comes with: 

• Lower interest rates 
• Quick approval 
• Minimal paperwork 

Most banks allow you to borrow 70% to 90% of your FD amount. You also keep earning interest on your FD while repaying the loan. 

Benefits of a Loan Against Fixed Deposit

Here are the main reasons why many people prefer a loan against FD: 

• Low Interest Rates: Banks normally charge up to 3% above your FD rate, which is much cheaper than personal loans.
• Flexible Loan Amount: The loan offered can be anywhere between 70% to 90% of the FD value. You can borrow as you need.
• Fast Processing: Since the FD is used for pledging, loan evaluation, and processing becomes faster.
• FD Stays Safe: You don’t have to close your FD, so your savings stay intact and continue growing. 
• Quick Access to Funds: Compared to the lengthy processes of unsecured loans, a loan against FD can provide quicker assistance during emergencies.

Factors Affecting the Loan Against FD Interest Rate

Banks generally offer a loan against FD interest rate that is up to 3% or more than the FD interest rate. That said, the following factors can impact the rates:

• FD Interest Rate: Since the FD rate directly helps decide the interest rate for the loan against FD, the higher the FD rates, the higher the loan rates.
• FD Tenure: If the maturity period has little time left, the rates tend to go high.
• Customer Relationship: Long-standing relationship, holding salary accounts, running multiple accounts (savings, credits, and so on) with the lender bank can help negotiate a better secured loan FD rate.
• Banks’ Internal Policies: Internal policies, market competition, and operational costs of the banks can have an impact on the rates offered.

Bank-Wise Loan Against FD Rates 2025-2026 for Easy Comparison

Here is an easy comparison of bank wise loan against FD rates: 

Tips for Choosing the Best Bank 

• Compare interest rates from multiple banks.
• Check the maximum loan-to-value (LTV) percentage.
• Ask if the bank offers an overdraft facility. 
• Try to negotiate if you are an existing customer. 
• Repay early if possible to reduce interest costs.

Conclusion 

The loan against FD interest rate depends on the interest rate of the FD as well as the lender bank’s policy. A high-value FD and the availability of extended tenure, which depends on the remaining maturity of the FD,  also help determine the rates.

Check out the latest bank wise loan against FD rates and apply with My Mudra for a hassle-free application process and quick disbursal.

Also Read:
- Loan Against FD vs Personal Loan – Which Is Better? (2025 Comparison)
- Fake Loan App List (2025 – Apps Banned or Flagged by RBI)