Loans Against Fixed Deposits

Loans Against Fixed Deposits

Loan against fixed deposit is a secured loan where you can pledge your deposit as collateral and get a loan in return. In case of a financial emergency such as medical expenses or paying off for marriage, people tend to look out for loans from a lot of sources to meet their needs.

Loans Against Fixed Deposits
5 %
Interest Rate
Loans Against Fixed Deposits
8.74 %
Base Rate
Loans Against Fixed Deposits
13.74 %
Total Interest Rate

Last Updated Date: January 24, 2022

Laxmi Bank Ltd

Laxmi Bank Limited was incorporated as the 16th commercial bank of Nepal in April 2002. The Bank has been combined with limited HISEF finance,The first generation financial firm which was the first merger in Nepalese corporate history, was HISEF finance limited. Laxmi Bank is a technologically driven bank which has been categorized as a 'Class A' financial institution and has been re-registered under “Banks and Financial Institution Act” in 2006. This bank is popular among its customers for its creativity and highest quality services. Laxmi bank believes in offering its clients the services of accountability, professionalism and strong ethical tone. The bank 's key vision is the provision of the most integrated financial services.

Loans Against Fixed Deposits


  1. Identification document like Citizenship, Passport
  2. pass port size Photo
  3. Documents certifying current salary (for employee)
  4. Certified Income Statement
  5. Paper of Agreements/contracts (for Fixed Income Groups)

What is a Loan against Fixed Deposit?

Loan against FD (Fixed Deposit) is a type of secured loan where customers can pledge their fixed deposit as security and get a loan in return. The amount of loan depends on the FD deposit amount. This can go up to 90% – 95% of the deposit amount. During a cash crunch or emergency, people tend to look for loans from a lot of sources. One of those sources can be getting loans against fixed deposits (FD) from banks. This is a time-efficient way of getting a short-term loan. Instead of breaking the FD prematurely, depositors can easily apply for a loan against their FD with the bank. When availing loan against fixed deposit, banks keep customer’s FD as the collateral. This makes the loan thus raised secured. Since it’s a secured loan, interest charged for the same is cut short. In case the loanee is not able to repay the loan amount, the bank can easily procure it from the FD amount. Usually, this amount is settled at the time of maturity.

Who can Apply for a Loan against FD?

  • Loan against fixed deposits is extended to all the fixed deposit holders, be it individual holder or those with joint accounts
  • FD in the name of a minor does not qualify for this facility
  • Investors of a 5-year tax-saving FD cannot apply for this type of loan

Benefits of Loan against FD

  • Lower interest rates compared to other types of loans like a personal loan (0.5% – 2% above the applicable FD rate)
  • No need to break FD and go for premature withdrawal thus suffering a loss of interest on FD
  • No processing fees charged
  • Can be availed against domestic as well as NRI FDs
  • Can be repaid as a lump sum or in installment (not later than FD tenure)

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