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SBI Loan Against FD Calculator — Borrow Against Deposit

Calculate your maximum borrowing limit, daily interest cost, and repayment schedule with the SBI Loan Against FD Calculator. Avail up to 90%–95% of your fixed deposit value as an instant overdraft or demand loan at just 1.00% above your deposit rate with zero processing fees.

Interactive Sandbox
₹10K₹20L
1%12%
3 mo5 yrs
Min: ₹25,000 Max Loan Eligible (90%): ₹0

Loan Interest Rate

0%

Monthly Loan EMI

₹0

Total Interest Payable on Loan

₹0

Net Effect Comparison

FD Earnings during tenure

FD Maturity Value:₹0
FD Interest Earned:₹0

Loan Cost details

Total Loan Repayments:₹0
Net Gain / (Cost) Difference:₹0

Current SBI Rates

Period / Type Interest Rate
Interest Rate Margin Contractual FD Rate + 1.00% p.a.
Maximum Loan Amount Up to 90% (Online YONO) / 95% (Branch) of Principal + Accrued Interest
Processing Fees Nil (100% Free Processing)
Prepayment Penalty Nil (Zero Penalty for Early Closure)
Repayment Tenor Flexible up to residual maturity of the underlying FD (Max 5 Years)

How to Use This Calculator

  1. 1Enter the required values in the input fields above
  2. 2Adjust the sliders or type exact values for precision
  3. 3Click "Calculate" to see instant results with breakdown
  4. 4View the chart and table for detailed analysis
In-Depth Authority Guide

Comprehensive Guide & Financial Analysis

Verified Against SBI Schedules

In-Depth Guide to SBI Loan Against Fixed Deposit (Overdraft & Demand Loan)

Unexpected monetary emergencies—such as medical hospitalizations, sudden business working capital needs, tax obligations, or college admission deadlines—frequently catch households off guard. In such situations, many investors panic and prematurely break their long-term Fixed Deposits (FDs). Liquidating an FD prematurely is financially punitive: State Bank of India enforces a premature closure penalty of 0.50% to 1.00% below the applicable rate, and you sacrifice the power of long-term quarterly compounding on your hard-earned savings.

The SBI Loan Against Fixed Deposit (Overdraft / Demand Loan Facility) provides the ultimate liquidity solution. Rather than closing your deposit, you pledge your domestic term deposit (TDR), special term deposit (STDR), recurring deposit (RD), or electronic fixed deposit (e-FD) to secure an instant, low-cost credit facility directly from SBI.

The Two Operating Models: Overdraft (OD) vs. Demand Loan (DL)

State Bank of India structures loan facilities against fixed deposits into two distinct lending mechanisms:

  • 1SBI Overdraft Facility Against FD (OD): Recommended for individuals seeking flexible, revolving credit. SBI sanctions a drawing limit of up to 90% of your online fixed deposit (up to 95% at branch counters). You can draw funds as needed via internet banking, UPI, chequebook, or your linked ATM card. Crucially, interest is charged strictly on the exact amount utilized and for the exact number of days borrowed. If you borrow ₹1,00,000 for 12 days and deposit it back, you pay interest only for those 12 days, not for the entire month or year.
  • 2SBI Demand Loan Against FD (DL): Designed for borrowers who need a lump-sum payout immediately. The full sanctioned amount is disbursed directly into your savings or current account. Repayment can be structured in monthly installments or settled as a bullet payment at the maturity of the underlying deposit.

    • Concessional Pricing: The "FD Rate + 1%" Rule

    Unlike unsecured personal loans where interest rates are dictated by volatile credit risk models, SBI prices loans against fixed deposits on a transparent spread basis:

    Effective Borrowing Rate = Underlying FD Contractual Rate + 1.00% p.a.

    For example, if you opened an SBI Fixed Deposit at 6.80% p.a., your borrowing rate is capped at just 7.80% p.a. (or 0.65% per month). Because the loan is fully secured by cash collateral already held within the bank's vaults, SBI charges zero processing fees, zero appraisal charges, and zero prepayment foreclosure penalties.

    Mathematical Formula for Overdraft Interest Calculation

    Interest on an SBI Overdraft account is computed on a daily reducing balance basis:

    Daily Interest = [Utilized Overdraft Balance × (FD Rate + 1.00) / 100] / 365

    At the end of each calendar month, the daily interest accruals are summed and debited to the overdraft account. If you do not withdraw any funds from the sanctioned limit, your interest cost is exactly ₹0.00.

    Practical Worked Example: Overdraft for 45 Days vs. Breaking an FD

    To grasp the immense financial advantage of an SBI Loan Against FD, consider an investor holding an SBI Fixed Deposit of ₹5,00,000 earning 7.00% p.a. with 18 months remaining until maturity. The investor requires ₹2,00,000 for an urgent 45-day emergency:

    | Financial Strategy | Overdraft Against FD (45 Days) | Breaking the Fixed Deposit | Taking an Unsecured Personal Loan | | Amount Accessed | ₹2,00,000 | ₹2,00,000 (Liquidates ₹5 Lakh FD) | ₹2,00,000 | | Applicable Interest Rate | 8.00% p.a. (7.00% + 1.00%) | Loss of 1.00% penalty on full ₹5L | 12.50% p.a. | | Processing Fees | ₹0 (100% Free) | ₹0 | ₹3,000 (1.5% + GST) | | Duration of Debt | 45 Days | Permanent loss of FD interest | Minimum 12 Months Locked | | Net Cost Incurred | ₹1,973 (Interest for 45 days) | ₹7,500+ (Penalty + Foregone Compounding) | ₹16,800+ (Interest + Processing Fee) | | Status of Remaining ₹3,00,000 | Continues earning 7.00% uninterrupted | Disrupted entirely | Unaffected |

    By choosing the Overdraft facility, the borrower saves thousands of rupees, avoids breaking a long-term deposit, and retains full financial dignity.

    Comprehensive Comparison: Loan Against FD vs. Alternative Credit Channels

    Review how the SBI Loan Against FD compares against common alternative borrowing options:

    | Feature | SBI Loan Against FD | SBI Xpress Credit Personal Loan | Credit Card Cash Advance | Gold Loan | | Interest Rate | FD Rate + 1.00% (Typically 7.5%–8.0%) | 11.15% – 14.50% p.a. | 36.00% – 44.00% p.a. | 8.75% – 9.75% p.a. | | Processing Fee | Nil (₹0) | Up to 1.50% of loan amount | 2.50% – 3.50% per withdrawal | 0.25% – 0.50% | | CIBIL Verification | Not Required | Mandatory (750+ score) | Pre-approved limit | Low to Moderate | | Income Documentation | None Required | Salary Slips, ITR, Form 16 | None Required | Income proof required | | Disbursal Speed | Instant via YONO (< 60 seconds) | 2 to 4 working days | Immediate (ATM) | Same day at branch | | Maximum Loan Limit | Up to 90%–95% of deposit | Up to ₹20 Lakhs | Cash limit (typically 20%–40%) | Up to ₹50 Lakhs |

    Step-by-Step Guide to Availing Instant Loan Against FD via YONO SBI

  • 1Log in: Open the YONO SBI mobile app or visit OnlineSBI and log in using your MPIN or internet banking credentials.
  • 2Navigate to Deposits: Select the Deposits tab from the dashboard and choose My Deposits.
  • 3Select Eligible FD: Locate your active Fixed Deposit or Special Term Deposit (e-TDR/e-STDR). Tap on Avail Loan Against Deposit.
  • 4Choose Amount & Facility: Enter the desired loan amount (up to 90% of the displayed maturity value) and select whether you want an Overdraft (OD) or Demand Loan (DL).
  • 5Review Terms & OTP: Review the interest rate (FD rate + 1%), accept the terms and conditions, and verify via One-Time Password (OTP) sent to your registered mobile number.
  • 6Instant Disbursal: The overdraft drawing limit or demand loan proceeds are activated in your account within seconds, ready for immediate withdrawal or UPI spending.

    • Key Caveats and Repayment Terms

    Important Collateral Note: When a loan against an FD is sanctioned, SBI places an automated lien on the underlying fixed deposit. You cannot close, modify, or encash the fixed deposit until the loan is fully repaid and the lien is discharged. If the loan remains unpaid upon the maturity date of the fixed deposit, SBI core banking will automatically adjust the outstanding loan principal and interest from the maturity proceeds and credit the remaining surplus balance directly into your savings account.

    Frequently Asked Questions

    What is the maximum loan percentage I can borrow against my SBI Fixed Deposit?
    You can borrow up to 90% of the principal deposit value plus accrued interest when applying digitally through the YONO app or OnlineSBI portal. If applying physically at an SBI branch counter, the loan limit can extend up to 95% of the total deposit value.
    What is the interest rate charged on an SBI Loan Against Fixed Deposit?
    SBI charges an interest rate exactly 1.00% (100 basis points) above the contractual interest rate of your underlying fixed deposit. For example, if your FD earns 7.00% p.a., the borrowing interest rate is fixed at 8.00% p.a.
    Do I need a good CIBIL credit score to get a loan against my SBI FD?
    No. Because the loan is 100% secured by cash collateral already deposited with SBI, the bank does not perform credit score checks, and a low CIBIL score will not lead to rejection.
    Does my fixed deposit continue earning interest while the loan is active?
    Yes! Your underlying fixed deposit continues to earn its full contractual interest rate with regular quarterly compounding throughout the entire loan duration without any interruption.
    Can I get a loan against a 5-Year SBI Tax Saver Fixed Deposit?
    No. Under Section 80C of the Income Tax Act, 5-Year Tax Saver Fixed Deposits have a mandatory 5-year lock-in period and cannot be pledged as collateral for any loan or overdraft facility.
    Are there any processing fees or prepayment charges for an SBI Loan Against FD?
    Zero. SBI levies completely nil processing fees, zero documentation charges, and absolutely no prepayment or foreclosure penalties if you choose to repay the loan early.
    Can I get an overdraft against an SBI Recurring Deposit (RD)?
    Yes. SBI permits loans and overdraft facilities against Recurring Deposits up to 90% of the total cumulative installment balance deposited up to the date of loan application.
    What happens if I cannot repay the loan before my fixed deposit matures?
    If the loan balance remains unpaid upon the maturity of your fixed deposit, SBI automatically settles the outstanding loan balance and accrued interest from the FD maturity proceeds, and the remaining surplus funds are credited directly to your savings account.
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    Disclaimer: This calculator provides estimates based on the inputs provided. Actual rates and results may vary. Always verify with SBI's official website or visit your nearest branch before making financial decisions. This website is not affiliated with State Bank of India.

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