SBI Loan Against FD : Interest Rate | Features | Benefits | Online | Repayment


Everyone is in need of loans for many reasons like home, vehicles, education etc. Then avail SBI loan against FD without breaking your fixed deposit.
This initiative is quite favorable for the ones, who are looking to avail a loan as the rate of interest is quite low when compared to other type of loans that exist in the financial sector.

Features & Benefits 

  • FD’s holder can avail loans up to 90% of the value of the FD. therefore, higher the amount of the deposit in the SBI FD, the good are the chances of securing a substantial funds as loan as and when the need arises.
  • Two type of loan available : Overdraft Facility and Demand Loan.
  • Zero processing charges and Enjoy with no prepayment penalties.
  • Minimum amount of Loan as of now (For Online Overdraft against FD) : Rs 25000.
  • Maximum amount of Loan as of now (For Online Overdraft against FD): Rs 5 Crore. Security Lien on underlying fixed deposit.
  • Security Lien on underlying FD.

SBI Loan Against FD Interest rate

  • SBI promise for Low interest rates. Additionally, SBI charge interest on a everyday reducing balance.
  • Interest Rate: 1% above the relative FD rate.
  • SBI gives 0.25% interest rate concession if availed via YONO app or Internet banking.

Read What is PF Advance Form 31 Rules, Eligibility, Online Filing Procedure and Claim Status

How Loan against FD Works

You need the amount for 1 month due to an emergency.
It is common to charge an interest at (Fix deposit rate + x) % p.a.
Let us assume that in your condition, x= 3.
Thus, the loan rate will be (12+3) % p. a. = 15% p.a.
That is 1.25% per month.

Since the money that you need is Rs 600,000, you will borrow only that much. Since you will be getting it back after a month, the period of your borrowing is 1 month.
So, the interest expense for you turns out to be Rs 7,500 (600000*0.0125)
All this while, your deposit shall stand intact and you shall continue to earn the Rs 10,000 per month thereon till the end of the period.
For this borrowing, you need not furnish any security for your money (of a greater sum) is already with them. If you default on this loan of Rs 600,000, then they can always recover it from your deposit of Rs 1,000,000.


Single or joint account customers holding SBI’s FD are allow to avail this loan.
Single account customers can also get overdraft facility via internet banking (INB) against their Term Deposit Receipt (TDR) and Special Term Deposit Receipt(STDR).
This can simply be done online for which depositors need to open an overdraft account.
In a condition of joint account, each and every holder has to approve the loan request before the request is processed by the SBI.
In a condition, the request application is not signed by even one of the holders, the SBI can cancel the application and loan would not be sanctioned.

SBI Loan against Tax Saver Fixed deposit

As of now, the Overdraft(OD) facility cannot be availed against the following plan:

  • MODS.
  • Tax Saving Deposit.
  • RD.

How to Take SBI Loan against FD Online

Steps to online apply for Loan against the fixed deposit account are stated below:

  • The Customer to visit SBI authorized website and log in using credential.
  • Click on e Fixed Deposit option from the bar menu at the top of the page.
  • Overdraft(OD) against Fixed Deposit is available under e-Fixed Deposit tab.
  • Deposits held by the applicant shall display on the FD page.
  • Select the one against which overdraft is to be drawn then click on proceed.
  • Check the OD amount available, applicable SBI interest rate and expiry date and then click on ‘Submit’ bottom.

SBI Loan against FD – Repayment

Repayment schedule will be fixed and it is depending up on the repayment capacity for loan taken via branches.
Maximum Repayment period has been capped at Five years against STDR (Special Term Deposit Receipt) or e-STDR and Three years against TDR (Term Deposit Receipt) or e-TDR respectively for Overdraft availed online.

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