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Loan Against Fixed Deposit

A financial product in the form of fixed deposits on which financial institutes offer comparatively higher interest rates is a way to save for future. Oriental Bank of Commerce offers additional benefit over these fixed deposits in the form of loan against FD. These loans against FD are offered to account holders to meet personal expenses or business expenditure except for speculative or prohibited purposes.

To meet the financial requirements, taking loan against FD is comparatively better than liquidating FD for two reasons.

  1. Deposit holders are charged with premature withdrawal penalties for getting the fixed deposit liquidating before the maturity. However, no processing fee is charged for taking loan against the FD.
  2. Without disturbing the monetary future planning with liquidating the fixed deposit, one can easily get monetary assistance in the form of loan to meet urgent requirements.

Key Highlights of Loan Against FD Offered by Oriental Bank of Commerce

  • Individuals can get loan against self-term deposits and third party term deposits with Oriental Bank of Commerce
  • Against NRE term deposits, OBC offers 100 lakhs as the maximum amount for loan.
  • The maximum loan amount one can avail is Rs. 5 crores
  • The bank does not offer loan against the deposits with other banks.

Interest Rates and Margin Details

For loans taken against one’s own fixed deposit with the bank, OBC levies an interest rate of 1% over and above the FD’s interest rate. If, however, you take a loan against someone else’s FD, the interest rate applicable will be 2% above the FD’s rate, with MCLR acting as the base rate.

To know the margin rates applicable, see the below table:


Type of Deposit



Loan taken against Self Deposits of less than 6 months



Loan taken against Self Deposits of 6 months & above



Loan taken against Third Party Deposits, i.e., someone else’s FD


Eligibility to Avail Loan Against FD from Oriental Bank of Commerce

Oriental Bank of Commerce has set eligibility criteria to offer loan against FD, which include:

  • An individual has to be of Indian nationality and should be of 18 years and above & HUF.
  • Firms/companies provided the offered deposits are in the name of those firms/companies.

Important Factors one must know to Avail Loan Against Fixed Deposit

  • Oriental Bank of Commerce offer loan FD that is free from lien and restraint.
  • Oriental Bank of Commerce does not offer loan against fixed deposit opened in the name of a minor.
  • For loan against joint FDs all the members are equally responsible for the repayment of the loan.

How to Apply for Loan Against FD from Oriental Bank of Commerce?

To apply for a loan against FD, an applicant needs to follow a simple process.

Step 1: Check eligibility on PaisaBazaar

Step 2: Obtain application form

Step 3: Submit all the requisite documents

Documents Required to Get a Loan Against FD with Oriental Bank of Commerce

  • Duly filled application form.
  • Fixed Deposit details
  • Valid identity proof
  • Passport size photographs
  • Duly signed agreement letter
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