What is Loan Against FD?
A loan against fixed deposit lets you borrow up to 90-95% of your FD value without breaking the deposit. Interest is typically 1-2% above the FD's own rate. Structured either as an overdraft (interest only on drawn amount) or a term loan (regular EMI).
Formula
The standard amortizing EMI formula:
EMI = P × r × (1 + r)^n / [(1 + r)^n − 1] P = loan principal r = monthly interest rate (annual ÷ 12 ÷ 100) n = tenure in months
How to use this calculator
Enter the loan amount (typically 90% of FD value), the bank's LAF rate (usually your FD rate + 1-2%) and tenure. The FD continues to earn interest normally during the loan period.