• 1. It helps in liquidity management. Loan taken against your fixed deposit account can help you get short term money for any kind of financial requirements without breaking your FDs. It also saves you from selling your assets at discounted value to fulfill your monetary needs.
• 2. The most important advantage of taking a loan against fixed deposit is that you can get a loan at comparative and lower rates of interest than other personal loans as they are unsecured loans. Loans against FDs are secured loans with the underlying deposit in your FD account.
• 3. Banks in India offer maximum loan up to 90% of the value of your fixed deposit.
• 4. You can access the loan amount with cheque book, ATM and internet banking with banks like Axis Bank.
• 5. Loans against fixed deposits can be taken for any tenure as long as it does not exceed the tenure of your fixed deposits.
• 6. Loans are available to self and third party individuals including corporate organizations.

First, you need to fill a loan application form by putting all the required information. Along with the loan application form, you need to attach your fixed deposit receipt received from the bank. Upon receiving these documents, the bank will grant a loan against your fixed deposit.