Loading page
About this tool
Compare breaking a fixed deposit early against borrowing an overdraft on it, using the premature penalty and the FD rate plus spread.
A loan against a fixed deposit is a secured overdraft priced at the deposit's own rate plus a spread, and this calculator sets it against the alternative of closing the deposit early. Breaking an FD reprices the interest to the card rate for the period the money actually stayed, minus a premature-withdrawal penalty of usually 0.5% to 1%, applied from the date of deposit. Both routes are valued at the original maturity date, with quarterly compounding on the deposit and simple interest on the overdraft, so the two figures are directly comparable.
Open Loan Against Fixed Deposit Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Premature closure pays the card rate for the run period less the penalty — the larger cost, and the one people miss.
Flags when 90% of the deposit value is less than the cash you need, so the comparison stays honest.
Both routes are carried forward to the original maturity date, so the verdict is a single rupee difference.
Banks typically lend 90% of the deposit value, and some go up to 95%. The limit is set by each bank's board-approved policy rather than by RBI, and the deposit is marked as lien so it cannot be closed while the loan is outstanding.
The deposit's contracted rate plus a spread of about 1% to 2% a year. On a 7% deposit that means roughly 8% to 9%, which is well below any unsecured personal loan, and interest is charged only on the amount actually drawn.
Two things: the interest is recomputed at the card rate for the period the deposit actually ran, and a penalty of usually 0.5% to 1% is deducted from that rate. Both apply from the date of deposit, so a five-year deposit closed at 18 months earns roughly the 18-month rate minus the penalty for the whole 18 months.
Usually yes when the loan is needed for a short period or the deposit was booked at a high rate, because you only pay the spread rather than surrender the whole rate difference. Breaking wins when the money is needed for most of the remaining tenure and the penalty is small — which is exactly what this calculator settles for your numbers.
Add the Loan Against Fixed Deposit Calculatorwidget to your blog or website — free, responsive, no signup. Just keep the “Widget by AltFTool” credit link visible.
<iframe src="https://www.altftool.com/embed/widget/loan-against-fd-calculator"
title="Loan Against Fixed Deposit Calculator — free AltFTool widget"
width="100%" height="640" style="border:0;border-radius:12px;overflow:hidden"
loading="lazy" referrerpolicy="no-referrer-when-downgrade"></iframe>
<p style="font-size:12px;margin:4px 0 0">Widget by <a href="https://www.altftool.com/tools/all/loan-against-fd-calculator?utm_source=embed&utm_medium=widget">AltFTool — free online tools</a></p>