Can i get a loan against my FD?

[Tanvi]

Can I use my FD as collateral for a loan? Given a 10 lakhs FD at 7.25% interest, what is the expected loan amount and interest rate? Are there particular criteria, and do all banks offer loans against FDs?

[Reema]

Yes, you can easily get the loan against your FD from the bank. Most banks can give 90–95% of a loan with your FD value at a lower interest rate than other types of loans. Every bank offers the loans on FD, but the terms and conditions may vary. So read the terms carefully.