Loan Against FD Calculator India โ FY 2025-26
Need cash but don't want to break your Fixed Deposit? Calculate how much you can borrow against your FD (up to 90% LTV), see the real net cost after FD interest offset, compare breaking FD vs borrowing against it, and choose between overdraft and term loan. Updated with SBI, HDFC Bank, and ICICI Bank margins for March 2026.
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How to Use This Calculator
Loan Against FD tab
Enter your FD amount, the FD interest rate from your deposit receipt, and the bank's margin (SBI charges 1%, HDFC and ICICI charge 2%). Specify the loan amount needed and tenure. The calculator shows your loan eligibility, monthly interest, and — most importantly — the net cost after subtracting the FD interest your deposit continues to earn. It also compares net costs across 5 major banks.
Loan vs Break FD tab
Enter how much cash you need and your FD details including how many months have elapsed. The calculator compares two options side-by-side: Option A (break the FD — lose the premature withdrawal penalty plus all future interest) vs Option B (take a loan against FD — pay only the margin while FD keeps earning). See the exact rupee difference and which option is cheaper.
OD vs Term Loan tab
Enter the sanctioned limit and how much you will actually use. The calculator compares overdraft (interest charged only on the amount you withdraw) vs term loan (EMI on the full sanctioned amount). If you only need funds intermittently, OD can save you thousands in interest.
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The Formula
Loan against FD works on a simple principle: you borrow against your own money, so the bank's risk is near zero and the cost is minimal.
Maximum Loan = FD Amount × LTV Ratio (typically 90%)
Loan Interest Rate:
Loan Rate = FD Interest Rate + Bank Margin
SBI margin: 1% | HDFC/ICICI: 2% | BOB/PNB: 1%
Monthly Loan Interest (simple interest on outstanding):
Monthly Interest = Loan Amount × (Loan Rate / 12 / 100)
Net Cost (the number that actually matters):
Net Monthly Cost = Monthly Loan Interest − Monthly FD Interest
Net Annual Cost ≈ Margin % × Loan Amount / 100
Premature FD Withdrawal:
Effective Rate = Rate for period held − Penalty (0.5–1%)
Lost Interest = (Original Rate − Effective Rate) × Period Held + Future Interest Forfeited
Since your FD earns interest at the original rate while pledged, the true borrowing cost is approximately equal to only the margin percentage applied to the loan amount — making it one of the cheapest forms of credit available in India.
Example
Rahul — Pune IT professional, needs &rupee;8 lakh for sister's wedding expenses
Rahul has a &rupee;10 lakh FD at SBI earning 6.50% p.a., booked 6 months ago for a 2-year term. He needs &rupee;8 lakh urgently but doesn't want to break his FD and lose interest. Let's compare his options.
Step 1: Loan eligibility
Step 2: Loan cost at SBI (1% margin)
Step 3: Compare with breaking FD
By taking a loan against his FD instead of breaking it, Rahul saves over &rupee;92,000. His FD continues earning 6.50%, he pays only 1% margin to SBI, and after 12 months he repays the loan from his annual bonus. Zero processing fee, zero prepayment penalty.