Have a low credit score? Pledge your fixed deposit as security against loan

The benefit of a loan against FD is that it has a lower interest rate

The interest rate is attractive and obtaining it requires minimal paperwork

• Loan against FD (fixed deposit) is a secured loan where you can pledge your FDs as security. 
• The loan amount is usually up to 90-95 per cent of the deposit amount.
• Both individual and joint account holders can get a loan against FD.  
• Investors in five-year tax-saving FDs cannot apply for it. Also, you cannot get a loan against an FD that is in the name of a minor. 
• Lenders do not check the credit score of the borrower when he applies for a loan against FD, which means even those with a low