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Loan Against Recurring Deposit 2025

  Taking a loan against a Recurring Deposit (RD) can be a smart financial move in emergencies or when liquidity is needed without breaking the RD.  

Updated On - 06 Sep 2025
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Those who have a Recurring Deposit in a Bank can avail loan against the deposit. In this case, the recurring deposit will be treated as a collateral by the bank and the depositor can avail 80% - 90% of the deposit value as loan amount.

This will be a secured loan and any defaulted payment on the loan will be adjusted against the amount available in the recurring deposit account of the borrower. Interest levied on a loan against recurring deposit is lower than that which is applicable on a personal loan.

Loan against RD
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 Leading Banks in India That Offer Loan Against RD

ICICI Bank -  ICICI Bank Recurring Deposit scheme offers loan against the RD. The depositor should make a minimum deposit of Rs. 500 each month and afterwards, in multiples of Rs. 100/-. The tenure for this scheme can range from 6 months – 10 years. This scheme also offers nomination facility.

State Bank of India - State Bank of India offers loan against Recurring Deposit held in the bank. Depositors can avail an Overdraft or loan for a maximum amount of 90% of the funds available in the recurring deposit account. The recurring deposit can be held for a minimum period of 12 months and a maximum period of 120 months. Passbook facility and nomination facility are provided.

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Bank of Baroda - Bank of Baroda offers loan against Recurring Deposit held in the bank. Depositors can avail an Overdraft or loan of a maximum amount of up to 95% of the funds available in the recurring deposit account. The recurring deposit can be held for a minimum period of 12 months and a maximum period of 120 months. Nomination facility is provided. Defaulted payment on the loan will be adjusted against the amount available in the recurring deposit account.

Punjab National Bank - Punjab National Bank offers loan against Recurring Deposit held in the bank. Depositors can avail an Overdraft or loan against the funds available in the recurring deposit account. The recurring deposit can be held for a minimum period of 12 months and a maximum period of 120 months. Defaulted payment on the loan will be adjusted against the amount available in the recurring deposit account

Loan Against RD
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RD Interest Rates by Banks
  1. Uco Bank RD Interest Rates
  2. Central Bank RD Interest Rates
  3. Federal Bank RD Interest Rates
  4. Indian Bank RD Interest Rates
  5. Kotak Mahindra RD Interest Rates
  6. IOB RD Interest Rates
  7. Citybank RD Interest Rates
  8. Indusind Bank RD Interest Rates
  9. BOM RD Interest Rates
RD Article Pages
  1. Recurring Deposit Vs. Chit Fund
  2. Miss to Pay the Recurring Deposit Due
  3. Difference Between Recurring Deposit and SIP
  4. Open RD Account through HDFC NetBanking
  5. RD Account in SBI
  6. Advantages of Recurring Deposit
  7. Flexi RD
  8. SBI Flexi RD Schemes
  9. Monthly Recurring Deposit
  10. Indian Bank Recurring Deposit
  11. Union Bank Recurring Deposit
  12. UCO Bank Recurring Deposit
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FAQs on Loan Against Recurring Deposit

  • What is the interest rate to avail a loan against a recurring deposit?

    The interest rate will be according to the interest rates provided by your bank for a recurring deposit. Most banks provide a rate that is 2% to 3% higher than the rate on recurring deposits.

  • What is the time frame for repaying the loan against a recurring deposit?

      The typical repayment period for these loans is up to 60 months, or the duration of your investment. 

  • What fees must be paid in order to obtain a loan against a recurring deposit?

      There are no fees associated with availing loans against recurring deposits. However, part of your repayment will go towards interest, which serves as the fee for using the facility. 

  • Who can apply for a loan against a recurring deposit?

      All resident individuals, Hindu Undivided Family (HUF) members, sole proprietorships, trusts, etc., may apply for a loan against a recurring deposit.  

  • Can I avail loans against recurring deposits?

      Yes, banks typically allow you to borrow between 70% and 90% of the recurring deposit.  

  • Can senior citizens avail loans against recurring deposits?

    Yes, senior citizens can avail loans against recurring deposits.

  • Can NRIs avail loans against recurring deposits?

      Most banks now provide the facility of loans against recurring deposits to NRIs.  

  • Can I obtain a loan against a recurring deposit online?

      Depending on your bank, you may obtain a loan against a recurring deposit online.  

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