Are You Eligible for a Loan Against FD? Here’s How to Find Out

Ever found yourself needing quick cash — maybe for a sudden medical bill, home repair, or your child’s school fees — but didn’t want to break your FD and lose all that interest you’ve been earning?

You’re not alone. That’s exactly where a loan against your fixed deposit can be a lifesaver. It’s fast, simple, and way more affordable than a personal loan or credit card.

So before you apply, let’s make sure you’re eligible.

Key Takeaways

• You can borrow up to 90–95% of your FD amount.
• Eligibility depends on the FD type, ownership, maturity period, and bank policies.
• Loans are offered to individuals, HUFs, and minors with guardians — but not on tax-saving FDs.
• Your FD must be with the same institution where you apply for the loan.

Do I qualify for an FD loan?

Lenders follow basic eligibility rules before approving an FD-backed loan.

Who can apply for an FD-backed loan?

• Indian residents with active fixed deposits
• Hindu Undivided Families (HUFs)
• Minors (only via legal guardian)
• Senior citizens with FDs
• Joint FD holders (all must consent)

If your FD is with the same bank or NBFC, and you have basic KYC in place, chances are you're already eligible.

Is there a minimum FD amount?

Yes — most banks require:

• Minimum FD of ₹10,000 to ₹25,000
• Higher limits for corporate or NRI accounts

Some lenders also specify a minimum residual tenure (e.g., 3 or 6 months left on the FD).

Can I apply if the FD is not in my name?

No. Unless:

• You're a joint holder, or
• Have legal rights (guardian or Power of Attorney)

Solely-held FDs in someone else’s name do not qualify.

What about NRI or corporate FDs?

• NRE FDs(Non-Resident External Fixed Deposits): Usually not eligible due to repatriation rules
• NRO FDs(Non-Resident Ordinary Fixed Deposits): Some banks allow, subject to T&Cs
• Corporate FDs: Depends on internal lending policies of the bank

What FDs are eligible?

Not all fixed deposits qualify — and here’s what you need to know.

Are tax-saving FDs allowed?

No. Tax-saving FDs have a 5-year lock-in mandated by the government. These cannot be used as collateral for loans.

Do I need a regular or cumulative FD?

Both types are generally eligible:

• Regular FD: Pays interest at regular intervals
• Cumulative FD: Pays interest at maturity

Note: Some banks cap loan amounts for cumulative FDs.

Can I use a joint FD?

Yes, but with conditions:

• All holders must consent in writing
• KYC must be complete for each individual
• Loan repayment responsibility is shared

What about FDs from apps or digital platforms?

It depends on where the FD is actually held. If it's routed via fintech apps but issued by a recognized bank/NBFC, you may be eligible — but only if you apply through that institution.

What documents do I need?

A short checklist of what you’ll need to apply successfully.

What KYC documents are required?

• PAN card
• Aadhaar card or voter ID
• Valid address proof (if not on Aadhaar)

Some lenders now support fully digital KYC (Video KYC) for added convenience.

Do I need to submit FD proof?

Yes. This includes:

• A copy of your FD receipt
• Or a screenshot of your FD details (if digital)
• Bank statement or passbook with FD entry

Any additional documents?

• Loan application form
• Signed agreement
• ECS/NACH mandate for repayments
• Passport-size photograph

Tip: If your FD is already with the bank, some documents might be pre-filled, speeding up the approval process.

Conclusion

Getting a loan against your fixed deposit is honestly one of the simplest ways to raise quick funds — no need to panic or break your savings. 

That said, it only works if your FD ticks the right boxes. So before you apply, take a moment to check if your deposit is eligible, your documents are ready, and you're applying with the right lender.