Question 1

How is Loan Against FD EMI calculated?

Accepted Answer

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the loan principal, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months. Use the calculator above to compute it instantly for any combination of amount, rate, and tenure.

Question 2

What is the difference between fixed and floating interest rate for a loan against fd?

Accepted Answer

A fixed rate stays the same for the entire tenure (or a defined period) — your EMI never changes. A floating rate is linked to an external benchmark (typically the RBI Repo Rate) and resets every quarter or with each RBI policy change. Floating rates are usually 0.5–1% cheaper on day 1 but carry the risk of going up. Most Indian borrowers pick floating because of zero prepayment penalties under RBI rules.

Question 3

Can I prepay or foreclose my loan against fd without penalty?

Accepted Answer

For floating-rate retail loans, the RBI prohibits prepayment and foreclosure charges. For fixed-rate loans, lenders may charge 2–5% on the outstanding. Always check the lender's prepayment clause before signing — it's listed on each offer card above.

Question 4

How much can I borrow against my FD?

Accepted Answer

Most banks offer 85–90% of the FD value. Your FD continues to earn the original rate — you only pay interest on the loan at FD rate + 1–2%. No processing fee, no prepayment penalty, no credit check.

Question 5

Is loan against FD better than breaking the FD?

Accepted Answer

Almost always yes. Breaking an FD typically loses 0.5–1% interest plus you reset the compounding. Loan against FD costs only the 1–2% spread and preserves the deposit. Pay it off whenever you have surplus.

Loan Against FD EMI Calculator India 1970

Outstanding Balance Over Time

Principal vs Interest

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