If you have a Fixed Deposit (FD) with Bank of Baroda (BOB) and need urgent funds, you don’t have to break your FD. Instead, you can apply for a Loan Against FD (LAFD) and continue earning interest on your deposit.

Here’s a complete 2026 guide explaining BOB Loan Against FD features, eligibility, interest rates, and the step-by-step process.

What is BOB Loan Against FD?

A Loan Against FD allows you to borrow money by pledging your Bank of Baroda Fixed Deposit as security.

• You continue earning FD interest.
• The bank gives you a loan against the deposit.
• The loan amount is usually a percentage of your FD value.

Quick Overview – BOB Loan Against FD 2026

Particular	Details
Loan Type	Secured Loan
Loan Amount	Up to 75%–90% of the FD value
Interest Rate	FD rate + 1% to 2% (approx.)
Processing Charges	Usually minimal or nil
Tenure	Up to the FD maturity date
Repayment Type	EMI or Overdraft option

Interest rates and loan limits may vary based on bank policy.

Key Features of BOB Loan Against FD

No Need to Break FD

You can keep your FD active and continue earning interest.

Lower Interest Rate

Since it’s a secured loan, the interest is usually lower than that of personal loans.

Quick Approval

Minimal documentation required.
Faster processing for existing customers.

Flexible Repayment

• EMI-based loan
• Overdraft facility (pay interest only on the used amount)

No Credit Score Impact (Usually)

Approval is mainly based on FD security, not CIBIL score.

BOB Loan Against FD Interest Rate 2026

Typically:

• Loan interest = FD interest rate + 1% to 2%

Example:

If your FD earns 7.50%
Loan interest may be around 8.50% – 9.50%

Actual rate depends on:

• FD type (cumulative/non-cumulative)
• Loan amount
• Bank policy

Always check the latest applicable rate in your branch or net banking.

Loan Amount Calculation Example

Suppose:

• FD Amount = ₹2,00,000
• The bank offers 85% loan value

Maximum Loan = ₹1,70,000

The loan limit may range from 75% to 90% of the FD value.

Eligibility Criteria

✔ Must have an active FD with Bank of Baroda
✔ Individual/joint account holders
✔ FD should not be a tax-saving FD (lock-in applies)
✔ KYC compliance required

Minor FD loans may be allowed if operated by a guardian.

Documents Required

For existing BOB customers:

• Loan request form
• FD receipt details
• ID proof (if required)

Generally, no heavy documentation is needed since FD acts as security.

How to Apply for BOB Loan Against FD (Step-by-Step)

Method 1: Through Net Banking (24×7)

1. Log in to BOB Net Banking.
2. Go to Loans → Loan Against Deposit.
3. Selectthe FD account.
4. Enter the required loan amount.
5. Confirm terms and submit.

Loan amount may be credited instantly (subject to eligibility).

Method 2: Visit the Branch

1. Submit the loan request form.
2. Provide FD details.
3. Sign the loan agreement.
4. Loan amount credited to your account.

Branch timings may vary by location.

Important Points to Remember

• The loan tenure cannot exceed the FD maturity.
• If you fail to repay, the bank may withdraw funds from the FD.
• Prepayment is usually allowed without penalty.
• Tax-saving FD cannot be pledged before the lock-in period.

Loan Against FD vs Breaking FD

Feature	Loan Against FD	Premature FD Closure
Interest Loss	No	Yes (penalty applied)
FD Continues	Yes	No
Processing Time	Quick	Immediate closure
Best For	Temporary need	Permanent fund requirement

A loan against an FD is usually better for short-term cash needs.

Frequently Asked Questions (FAQs)

Conclusion

BOB Loan Against FD in 2026 is a smart option if you need short-term funds without breaking your deposit. With lower interest rates, quick approval, and minimal paperwork, it is often better than taking a personal loan.

Before applying, check the latest interest rates and loan terms through official Bank of Baroda channels.