IndusInd Bank Loan Against FD: How It Works

IndusInd Bank Loan Against FD: How It Works

IndusInd Bank offers loans against Fixed Deposits, allowing you to borrow up to 90% of your FD value without breaking the deposit. This is one of the fastest ways to get funds at a lower interest rate than a personal loan.

Key Features

• Loan amount: Up to 90% of the FD principal.
• Interest rate: Typically 1% to 2% above the FD interest rate, making it cheaper than most personal loans.
• No credit score check: The FD itself serves as collateral.
• Quick processing: Can be approved within a few hours to 1 working day.
• FD continues to earn interest: Your FD is not broken, so it keeps accruing returns.

Eligibility

• You must hold a Fixed Deposit with IndusInd Bank in your own name.
• FDs held jointly can be used, but all joint holders must consent.
• The FD should not be under lien for any other purpose.

How to Apply for Loan Against FD

Via IndusMobile App

1. Log in to the IndusMobile app.
2. Go to Loans and select Loan Against FD.
3. Choose the FD you want to use as collateral.
4. Enter the loan amount (within 90% of FD value).
5. Submit and verify with OTP. Funds are credited to your linked account.

Via Net Banking

1. Log in at indusind.com.
2. Go to Deposits or Loans and select Loan Against FD.
3. Follow the on-screen steps to apply and confirm.

At Branch

Fill out the loan application form at your branch. Bring your FD receipt and KYC documents. The branch officer will set up the overdraft facility against your FD.

Repayment

The loan is structured as an overdraft account. You pay interest only on the amount used, not on the full sanctioned limit. Repay at your convenience before the FD maturity date.

FAQ

Does taking a loan against FD affect my FD interest earnings at IndusInd Bank?

No. Your FD continues to earn interest at the original rate throughout the loan tenure. Only when you fail to repay the loan before FD maturity does the bank liquidate the FD.

What is the interest rate for loan against FD at IndusInd Bank?

The interest rate is generally 1% to 2% above the FD rate. For example, if your FD earns 7%, the loan rate would be around 8% to 9%. Confirm the current rate with your branch or on indusind.com.

Can I apply for a loan against a tax-saving FD at IndusInd Bank?

No. Tax-saving FDs (under Section 80C) have a mandatory 5-year lock-in and cannot be used as collateral for loans during this period.

Key Takeaways

• Borrow up to 90% of your FD value without breaking the deposit.
• Interest rate is 1% to 2% above the FD rate, cheaper than personal loans.
• FD keeps earning interest during the loan period.
• Apply easily via IndusMobile app, net banking, or branch.
• Tax-saving FDs are not eligible for this facility.