Apply for Loan Against Fixed Deposit

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Swith Fixed Deposits by Airtel Finance

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Loan Against Fixed Deposit

Have a fixed deposit with Airtel Finance? Now you can get a personal loan with the booked FD amount, with the lowest interest rates. Pay back your loan with flexible EMIs, via the Airtel Thanks app. The entire process is 100% digital and paperless, adding to your convenience.

Benefits	Description
Substantial Loan Amount	Borrow 70% to 90% of your fixed deposit value (e.g., ₹7 lakh to ₹10 lakh on a ₹10 lakh deposit).
Competitive Interest Rates	Rates are 2% to 3% higher than FD rates, making it more affordable than personal loans.
Flexible Repayment Options	Loan term aligns with FD tenure; shorter repayment periods are available.
No Processing Fees	No fees for processing, lowering the overall cost of the loan.
Easy Application Process	Requires minimal documentation; current FD holders can apply easily, including online.
Retain Your FD	Access funds without breaking your fixed deposit, allowing you to keep your investment intact.

Benefits

Description

Substantial Loan Amount

Borrow 70% to 90% of your fixed deposit value (e.g., ₹7 lakh to ₹10 lakh on a ₹10 lakh deposit).

Competitive Interest Rates

Rates are 2% to 3% higher than FD rates, making it more affordable than personal loans.

Flexible Repayment Options

Loan term aligns with FD tenure; shorter repayment periods are available.

No Processing Fees

No fees for processing, lowering the overall cost of the loan.

Easy Application Process

Requires minimal documentation; current FD holders can apply easily, including online.

Retain Your FD

Access funds without breaking your fixed deposit, allowing you to keep your investment intact.

Customer Category

Deposit Amount

₹

Tenure (Months)

Interest Rate (% p.a)

MATURITY VALUE

₹1,10,250

7.90% Applied

INTEREST EARNED +₹10,250

MATURITY DATE --

Principal Amount₹1,00,000

Total Interest₹10,250

Total Payable₹1,10,250

Why choose Loan Against Fixed Deposit?

If you’re looking for a secured loan backed by your fixed deposit at some of the lowest interest rates available, consider Airtel Finance loans against FDs. You can conveniently manage your repayments through EMIs via the Airtel Thanks app. Enjoy the benefits of your FD while accessing funds easily!

Eligibility for Loan Against Fixed Deposits

To qualify for a loan against a fixed deposit, you must have an FD with the lending bank.

Resident Indian citizens

Family Trusts

Hindu Undivided Families (HUF)

Clubs, societies, and associations

Sole proprietorships, group companies, and partnerships

Features	Details
Early Repayment Flexibility	You can settle the loan early without penalties and continue to earn interest on your fixed deposit.
Simplified Documentation	The process is streamlined since the bank already has your information. You'll only need to submit your FD receipts and identification.
Competitive Interest Rates	Loans against FDs usually come with lower interest rates compared to personal loans, leading to lower monthly payments (EMIs).
No Credit History Requirement	These loans do not require a credit score check for eligibility, making them accessible to those with lower credit scores.

Features

Details

Early Repayment Flexibility

You can settle the loan early without penalties and continue to earn interest on your fixed deposit.

Simplified Documentation

The process is streamlined since the bank already has your information. You'll only need to submit your FD receipts and identification.

Competitive Interest Rates

Loans against FDs usually come with lower interest rates compared to personal loans, leading to lower monthly payments (EMIs).

No Credit History Requirement

These loans do not require a credit score check for eligibility, making them accessible to those with lower credit scores.

What is a Loan Against FD?

A Loan Against FD (Fixed Deposit) is a secured loan where you use your fixed deposit as collateral to borrow funds. This type of loan allows you to access liquidity without breaking your FD prematurely. The loan amount can be a certain percentage of the FD’s value, and you continue to earn interest on the FD. It’s a convenient option for meeting financial needs while maintaining your investment.

Benefits of Taking a Loan Against FD

Taking a Loan Against FD offers several benefits, including lower interest rates compared to unsecured loans, quick approval and disbursement, and no prepayment penalties. Additionally, your FD continues to earn interest, providing dual benefits. This type of loan also doesn’t require extensive documentation, making the process simple and hassle-free. It’s an excellent way to meet urgent financial needs without compromising your savings.

Eligibility Criteria for Loan Against FD

The primary eligibility criterion for a Loan Against FD is having an active fixed deposit with the bank. Some banks may require the FD to have a minimum deposit amount and specific tenure. Generally, both individual and joint FD holders are eligible. The borrower should be the primary holder of the FD, and the loan can be availed by residents, NRIs, and senior citizens.

Loan Amount and Interest Rates

The loan amount for a Loan Against FD typically ranges from 70% to 90% of the FD value, depending on the bank’s policies. The interest rate for this loan is usually 1-2% higher than the interest rate earned on the fixed deposit. This makes it a cost-effective borrowing option compared to other loans, as the rates are relatively lower due to the secured nature of the loan.

Application Process for Loan Against FD

Here is how to apply for your loan against FD on the Airtel Thanks app:

Open the Airtel Thanks app

Go to the Shop tab

Select Airtel Finance

If you have already booked your FD, you will be able to see the option to apply for a loan on the FD

Apply for the loan

Your loan will be approved in no time!

How Interest is Calculated on Loan Against FD

Interest on a Loan Against FD is calculated based on the loan amount and the interest rate, which is usually a few percentage points above the FD interest rate. Interest is charged only on the borrowed amount, and repayment can be made through EMIs or as a lump sum. The calculation method ensures that you pay interest only on the utilized funds, making it a cost-effective option.

Tax Benefits and Obligations for Loan Against FD

While a Loan Against FD doesn’t offer direct tax benefits, it has certain advantages. The interest paid on the loan is not eligible for tax deductions. However, since the FD continues to earn interest, that interest income remains subject to tax as per your applicable slab. It’s important to note that the loan itself is not considered income and hence not taxable.