Loan Against Fixed Deposit (LAFD)

In a Loan against an FD, the banker or financial institution where you have parked your FD is an important consideration. If you have a lower-rated institution, the risk of default may be higher, leading to a lower Loan-to-Value (LTV). However, if you keep the FD with a well-rated banker or financial institution, the LTV can go as high as 95% of the FD’s value. Generally, in this case, the interest rate may be slightly higher than the interest rate you are getting on your FD.

Apply Smoothly

Key Features of Loan Against FDs

Benefits of Loan Against FDs

Access liquidity without breaking your fixed deposit.
Interest slightly higher than the FD rate, making it cost-effective.
Use the capital for Capex, Opex, or debt repayment, as the end use is not monitored.
Your FD continues to earn interest while you use the loan amount.
OD facility (pay only for what you use).
Simple documentation and quick disbursal.

How Do We Execute the LAFD facility?

1. Submitting the portfolio statement.

2. Analyzing the Strengths and Opportunities.

3. Terkar Capital team shares the In-Principle confirmation (before log in).

4. Post your confirmation, we will get the KYC documents.

5. Log in the Proposal with OTP.

6. Pledging the shares.

7. Final Sanction.

8. Disbursement.

Loan Against FDs Documents

Generally, documents are very simple, and they vary from applicant to applicant.

1. For Individuals

1. Complete the Aadhar card copy.
2. Clear Pan Card copy
3. Cancel the cheque
4. Passport-size photo.
5. FD Details

2. For Businesses

1. Business KYC (As per Partnership firm/ Private Limited company / LLP / Public Limited company / HUF)
2. Owner KYC - as like individuals.

Loan Against FDs at Terkar Capital

We make it easier for you to convert your mutual fund into immediate liquidity without redeeming it. With our strong expertise in debt facilitation, we structure LAMF facilities that are fast, flexible, and cost-effective. For businesses looking for working capital, our tailored solutions ensure minimum cost and maximum liquidity. We also make sure to offer competitive interest rates, smooth processing, and complete transparency.

Submit Your Details Below

FAQs on Loan Against Fixed Deposit

Usually, the loan carries an interest rate 1–2% higher than your FD rate, making it one of the most cost-effective funding options. For example, if you are getting 7.5% interest on your FD, the loan against the FD will be given at 8-8.5% per annum, linked to the interest rate the banker is paying you.

There is no strict capping; the amount depends on the FD value.

There are no prepayment charges in most cases, making it flexible to repay whenever your cash flows allow.

In case of default, the financial institution has the right to liquidate the FD to recover the due amount.

We Facilitate the Following Funding Instruments

Client Testimonial

Terkar Capital outlines its commitment to each of its clients. They remain contemporary and contextual to the changes required by the client. Thank you so much for helping me obtain an unsecured business loan. We appreciate the work and services provided by the Terkar Capital team.

Vaibhav Tathe

One of the best financial service providers in the city, which arranges business loan facilities without any hassle. We had great Accessibility and efficiency throughout the process. We would recommend Terkar Capital for facility arrangements.

Bhuu Joshi

It has been a thoughtful decision to render services from Terkar Capital as they focus on making capital funds readily available to their clients so that the client doesn't agonize about the gaps in the cash flow. Thank you for the seamless allocation of debt.

Viraj Shingate

Terkar Capital is a registered brand of Terkar Global Financial Development Pvt Ltd, an Investment Banking Firm with a national footprint. We work extensively with professionals and businesses of all sizes to arrange debt funding instruments.