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SBI Loans Against Fixed Deposits Research Team | Posted On Friday, September 20,2019, 05:45 PM

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SBI Loans Against Fixed Deposits



The State Bank of India (SBI) is a public sector financial services and banking statutory body headquartered in Mumbai, India. With a 23% market share in assets, SBI is the biggest bank in the country. It is a complete platform for people willing to buy personalized financial products and services.

If you are an SBI customer, here is a good news for you. All SBI customers can now avail loans against fixed deposits easily. Non-SBI customers should become the customers of SBI to benefit from this facility. It has been confirmed by the official sources that loans against FDs are offered without breaking the existing FD accounts. While individual SBI FD accountholders can borrow loans online, joint accountholders need to get it done at a bank branch.

 How does this product help? Many people do not like to liquidate their FDs since they have to pay the penalty and lose the interest. Banks start offering lower interest rates on the broken FD accounts. SBI loans against FDs will safeguard you from such financial hassles and help you manage the unexpected expenses.

Want to know more on Fixed Deposit? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Prime Features of SBI Loans Against Fixed Deposits

  1. Both single and joint FD accountholders are eligible to apply. In case of joint FD accountholders, the loan application has to be approved by each and every member before the bank process the loan application.
  2. The bank retains the right to disapprove the loan application if it is not signed by every accountholder.
  3. The maximum amount that may be withdrawn is Rs.25,000 (for online OD against an FD. For this OD facility, the cash limit is Rs.5 crore. The sum must not exceed 90% of the overall amount invested in the FD account.
  4. Loans against FDs can be availed up to 90% of the total value of the deposit. The bank does not sanction the loan when the loan amount surpasses Rs.5 crore.
  5. SBI Bank does not impose any processing fees on the loan and the interest rate will differ from person to person based on the terms.
  6. The payment tenure is decided on the basis of the repayment capabilities of the loan applicant. Against STDR/e-STDR, the maximum repayment tenure is 5 years. It is 3 years against TDR/e-TDR.
  7. The bank imposes no prepayment penalties if the customer likes to prepay the loan. Customers can repay the loan either by visiting the bank branch in person or via internet banking.

See Also: Fixed Deposit Interest Rates 2019

Key Benefits of SBI Loan Against FDs

  • The loan may be sanctioned up to 90% of the overall value of the FD. If you have an FD of Rs.5 lakh, then you may avail the loan up to Rs.4 lakh.
  • Interest rates are cheaper and imposed on a daily reducing balance.
  • As per the requirements of the accountholder, both overdraft facility and demand loans are offered by the bank.

How to Apply for SBI Loans Against FDs

The customers seeking to avail SBI loans against FDs can either login into their online banking profiles or apply via the OD against FD link under the e-Fixed tab or visit the bank branch in person to apply for the same.

See Also: What is Meant by Fixed Deposit?


Mr Ganesh has opened an FD of Rs.1 lakh for 2 years with SBI. He later decided to avail a loan against his FD account. A credit limit of 90% has been approved by the bank at an interest rate of 10%. If he withdraws Rs.90,000 on the first of October and repays the loan on the first of the next month, which is November, then he has to pay the interest only on Rs.90,000 for one month.

SBI FD Rates as of September 2019

Investment period

For regular deposits

For Senior Citizens

7- 45 days



46-179 days



180-210 days



211-364 days



1 year to one day less than 2 years



2 years – one day less than 3 years



5-10 years



The State Bank of India provides multiple FD options to customers for a fixed term. It does provide several benefits to its FD accountholders. For example, the bank pays the interest on the deposit only at the maturity time. The nomination facilities are available. The extra interest of 0.25% is paid by the bank to senior citizens. The auto-renewal facility is also available.

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