Loan Against Fixed Deposit Calculator 2026

You've worked hard to build that fixed deposit. It's sitting in the bank, quietly earning interest, and life is good. Then suddenly — a medical emergency, a business opportunity, a home renovation, or an unexpected expense lands on your doorstep. And you're left wondering: should I break my FD?

Here's the thing. You don't have to.

There's a smarter way — a Loan Against Fixed Deposit. And with a Loan Against Fixed Deposit Calculator, you can figure out exactly how much you can borrow, what the interest will cost you, and whether it makes financial sense — all in under two minutes.

In this complete guide, we'll walk you through everything: what a loan against FD actually is, how to use the calculator step by step, which banks offer the best terms, the different types of loans available, the real disadvantages nobody talks about, and even alternatives like credit cards against FDs.

What Is a Loan Against Fixed Deposit?

A loan against FD is a secured loan where your fixed deposit acts as collateral. Instead of breaking your FD prematurely — and losing interest plus paying a penalty — you pledge it to the bank and borrow a portion of its value.

The bank places a lien on your FD for the duration of the loan. Your FD continues to earn interest as usual. You get the cash you need. Everyone wins — as long as you repay on time.

The loan amount typically ranges from 70% to 90% of the FD value, depending on the bank. The interest rate is usually 1% to 2% above your FD rate, which makes it significantly cheaper than personal loans (which can go as high as 16–24% p.a.).

Think of it this way: if your FD earns 7% interest, your loan against FD may cost you just 8%–9% — far less than any credit card or personal loan in India.

How to Use the Loan Against Fixed Deposit Calculator

Our Loan Against Fixed Deposit Calculator is a free, easy-to-use web app that does all the math for you in seconds. Here's how to use it, step by step.

Step 1: Enter Your FD Amount

Type in the total value of your fixed deposit. For example, if you have an FD of ₹5,00,000, enter that amount. This is the principal — the base for all calculations.

Step 2: Enter the FD Interest Rate

Put in the annual interest rate your bank offers on your FD. For instance, SBI currently offers up to 6.60% p.a. for general customers (as of December 2025), while Axis Bank offers up to 7.35% for senior citizens. Enter your specific rate.

Step 3: Set the Loan Margin

The loan margin is the percentage of your FD you can borrow. Most banks allow up to 90%. So if your FD is ₹5 lakh and the margin is 90%, your maximum loan amount will be ₹4.5 lakh. Enter a value between 1% and 90%.

Step 4: Enter the Interest Spread

The spread is the extra interest charged over and above your FD rate. This typically ranges from 1% to 2% in India. SBI, for instance, charges just 1% above the FD rate for its overdraft facility. Enter a value between 1% and 2%.

Step 5: Set the Loan Tenure

Enter the loan tenure — how long you plan to borrow the money. You can enter this in months or years. The loan tenure cannot exceed the remaining maturity period of your FD.

Step 6: Choose Repayment Frequency

Select how often you want to make interest payments: Monthly, Quarterly, Half-Yearly, or Yearly. Monthly payments mean smaller amounts per period; yearly means a larger single payment at year end.

Step 7: Click "Calculate"

Hit the Calculate button. The app instantly shows you:

• Maximum Loan Amount — the most you can borrow
• Loan Interest Rate — your FD rate + the spread
• Interest Per Payment — how much you pay each cycle
• Total Interest Payable — the full cost of borrowing
• Total Amount Payable — principal + total interest
• FD Interest Earned — what your FD earns over the same period
• Extra Cost / Net Savings — the net impact compared to just holding the FD

A bar chart gives you a visual comparison of all these figures side by side.

Step 8: Adjust and Compare

You can tweak the numbers — change the margin, tenure, or spread — and recalculate instantly. This lets you find the most cost-effective setup before approaching your bank.

Practical Example: How the Calculator Works in Real Life

Let's say Priya is a salaried professional in Mumbai. She has an FD of ₹10,00,000 at SBI earning 6.60% p.a. She needs ₹7 lakh urgently for a home renovation.

Here's what she enters into the Loan Against Fixed Deposit Calculator:

Results:

So Priya pays ₹18,000 more in loan interest than she earns on her FD. But the alternative — breaking the FD prematurely — would cost her a premature withdrawal penalty of up to 1% (₹10,000) plus lost interest for the remaining tenure. The loan is clearly the smarter option.

Loan Against FD: Which Banks Offer It in India?

Loan Against FD Calculator SBI

State Bank of India offers one of the most competitive loan-against-FD facilities in the country. You can borrow up to 90% of your FD value, with a minimum of ₹5,000 and a maximum of ₹5 crore. The interest rate is just 1% above the FD rate, and there are zero processing charges and no prepayment penalties. SBI also offers online overdraft against FD through its net banking portal. Note that loans are not available against SBI Tax Saving FDs.

Loan Against FD Calculator HDFC

HDFC Bank allows you to pledge your FD for a quick loan without breaking it. The interest rate is typically 2% above the FD rate. The facility is available both as a term loan and an overdraft. You can apply through HDFC's net banking portal for faster processing. For FCNR deposits, HDFC offers overdraft up to 90% of the deposit value.

Loan Against FD Calculator ICICI

ICICI Bank offers loans against FDs for up to 90% of the deposit value. The loan is available as a demand loan or overdraft. ICICI has invested heavily in digital platforms, making it one of the fastest to process. Tax-saving FDs and FDs in the name of minors are not eligible.

Loan Against FD Calculator Axis Bank

Axis Bank offers loans against FDs of up to 95% of the deposit amount in some cases. The minimum FD amount for an overdraft facility is ₹25,000 for a minimum tenure of 6 months and 1 day. Interest is charged only on the amount withdrawn, making the overdraft option particularly cost-effective.

Loan Against FD Calculator BOI, BOB, PNB

Bank of India, Bank of Baroda (BOB) and Punjab National Bank (PNB) also offer loans against FDs under similar terms — typically up to 90% of the FD amount, with interest 1%–2% above the FD rate. All three are solid public sector options with wide branch networks across India.

Loan Against FD Calculator Kotak Mahindra Bank

Kotak Mahindra Bank offers a smooth, fully digital loan-against-FD experience. It's particularly popular among younger investors who hold their FDs digitally and want instant access to liquidity without visiting a branch.

Federal Bank Loan Against FD Calculator

Federal Bank is a well-regarded mid-sized private bank that offers competitive loan-against-FD facilities. It's a popular choice in South India and among NRI customers who hold FCNR or NRO deposits.

Post Office Loan Against FD Calculator

Post Office Term Deposits can also be pledged for loans of up to 75% of the TD value through the National Savings Institute. While the process is more manual, it's a reliable option for those in rural and semi-urban areas.

Bank Comparison Table: Loan Against FD in India

*Rates are indicative and subject to change. Always check with your bank for the latest terms.

Types of Loans You Can Take Against an FD

Overdraft Loan Against FD

An overdraft (OD) against FD is the most flexible option. The bank sanctions a credit limit based on your FD value, and you can withdraw as and when needed. Interest is charged only on the amount you actually use, not the entire sanctioned limit. Ideal for business owners, freelancers, or anyone with fluctuating cash needs.

Demand Loan Against FD

A demand loan is a lump-sum loan sanctioned for a fixed amount and fixed tenure. The entire loan amount is disbursed upfront and interest is charged on the full amount from day one. Suitable when you need the full amount immediately — for a medical emergency, for instance.

Personal Loan Against FD — SBI and Others

Some banks offer personal loans where an FD acts as collateral. This is slightly different from a standard loan against FD — the rates and terms may differ. SBI, HDFC, and ICICI all have this facility for existing customers.

Home Loan Against FD

You can use your FD as additional collateral when taking a home loan. This can help you secure better rates or a higher loan amount. It typically works as a top-up arrangement or supplementary security and is not as standardised as a direct loan against FD.

Car Loan Against FD

An FD can sometimes be pledged as additional security for a car loan, especially for borrowers with a low credit score or insufficient income proof. The bank may sanction a higher loan-to-value ratio when an FD is pledged alongside the car.

Interest on Loan Against FD: How Is It Calculated?

The interest on a loan against FD is calculated as a fixed percentage above your FD interest rate:

Loan Interest Rate = FD Interest Rate + Spread (1%–2%)

For a demand loan, interest is charged on the full outstanding amount for the full tenure. For an overdraft, it is charged daily on the amount withdrawn, making it more economical if you repay quickly.

Most banks use daily reducing balance calculations for interest, which means the moment you repay even a partial amount, your interest burden reduces immediately.

Key Benefits of Taking a Loan Against FD

• Lower interest rates compared to personal loans and credit cards — typically 2%–2.5% cheaper than personal loans
• FD continues earning interest throughout the loan tenure, partially offsetting your borrowing cost
• No credit score required — approval is based on the FD, not your CIBIL score, ideal for retirees and students
• Minimal documentation — since the bank already holds your FD and KYC, just a loan application and FD receipt are needed
• Fast disbursal — often processed within the same day, especially through net banking
• No prepayment penalty in most banks — close the loan early without extra charges
• Flexible repayment — choose between demand loan or overdraft based on your cash flow needs
• Joint FD holders eligible — both individual and joint FD holders can apply

Loan Against Fixed Deposit Disadvantages: The Real Picture

A loan against FD is not always the perfect solution. Here are the genuine disadvantages you should know before deciding.

• FD gets locked — once pledged, a lien is marked on your FD. You cannot break or prematurely withdraw it until the loan is fully repaid.
• Limited loan amount — you can only borrow up to 90% of the FD value, not 100%. If your FD is small, this may not meet your needs.
• Tenure is capped — the loan cannot exceed the remaining maturity period of your FD. Short-maturity FDs limit your borrowing window.
• Net returns reduce — your FD earns interest but you're paying a higher rate on the loan, so the net financial benefit is reduced.
• Risk of losing your FD — if you fail to repay, the bank has the legal right to liquidate your FD to recover the outstanding amount.
• Not applicable to Tax-Saving FDs — 5-year tax-saving FDs under Section 80C are not eligible for loans across all banks.
• FDs in the name of minors are excluded — joint FDs with a minor cannot be pledged.
• Only one loan at a time — you cannot raise another loan against the same FD while the first is outstanding.

Alternatives: Credit Cards Against FDs — Advantages and Disadvantages

How It Works

Many banks — including SBI, ICICI, HDFC, Axis, and Kotak — offer credit cards where your FD acts as the security deposit instead of a creditworthiness check. You open an FD (typically ₹10,000–₹25,000 minimum), and the bank issues a credit card with a limit of 80%–90% of the FD amount. Your FD continues to earn interest while you spend on the card.

Advantages of Credit Card Against FD

• Helps build credit score — one of the fastest ways to establish or repair CIBIL score from scratch
• No income proof required — great for students, homemakers, retirees, and self-employed people
• FD continues earning interest — the money is pledged but not spent
• Reward points, cashback, and offers — all the benefits of a regular credit card
• Revolving credit — repay and reuse the limit repeatedly
• Low entry barrier — start with as little as ₹10,000 FD

Disadvantages of Credit Card Against FD

• Very high interest if unpaid — credit card rates in India are 24%–42% p.a. on unpaid balances, far higher than a loan against FD
• Spending temptation — revolving credit can lead to overspending and debt accumulation
• Annual fees — many secured cards carry fees that eat into your FD returns
• Lower credit limit — only 80%–90% of FD, not the full amount
• FD remains locked — cannot be withdrawn until the card is surrendered and outstanding is cleared

Which Should You Choose?

The bottom line: use a loan against FD for large, specific cash needs. Use a credit card against FD if your goal is to build credit or manage routine expenses.

Smart Tips Before Taking a Loan Against FD

• Use the calculator first — always run the numbers before approaching the bank. Know your maximum loan amount, effective interest rate, and total cost upfront.
• Compare the cost vs. breaking the FD — sometimes premature withdrawal makes more sense if the FD is near maturity and the penalty is minimal.
• Choose overdraft over term loan if possible — if you don't need the full amount at once, pay interest only on what you use.
• Don't over-pledge — borrow only what you need. Just because you can access 90% doesn't mean you should.
• Watch the FD maturity date — your loan tenure cannot cross the FD's maturity date. Set a reminder to renew or repay before the FD matures.
• NRI customers can pledge NRE/NRO/FCNR FDs — HDFC, SBI, ICICI, and Federal Bank all offer this facility for NRI deposits.

FAQs: Loan Against Fixed Deposit Calculator

Conclusion: Use the Loan Against Fixed Deposit Calculator Before You Decide

A loan against your fixed deposit is one of the most underrated financial tools available to Indian investors. It's fast, affordable, and doesn't disrupt your savings. Whether you bank with SBI, HDFC, ICICI, Axis, BOI, BOB, PNB, Kotak, Federal Bank, or even the Post Office, this facility is available to you.

But it's not always the right choice. Borrowing without knowing the actual cost can leave you worse off, especially if your FD is small or your tenure is short.

That's exactly why our free Loan Against Fixed Deposit Calculator exists. It takes the guesswork out of the equation. You can see your maximum loan amount, your effective interest rate, what you'll pay across different repayment frequencies, how it compares to your FD earnings, and whether there's an actual extra cost — all in one place, in seconds.

Before you walk into your bank, before you make any borrowing decision — run the numbers. The calculator is right here, and it's completely free.