PNB Loan Against FD

Whenever we face an urgent financial situation, the first thought that comes to our mind is to liquidate our investments. People often think it is wise to break their Fixed Deposits instead of taking a loan to meet any urgent financial requirement. However, liquidating investments or breaking FDs is never a good idea when it comes to such circumstances. You can instead take a loan against your fixed deposits to arrange finances. Punjab National Bank is one of the leading banks in this country. It offers a facility of loan against FD in PNB to help its consumers meet their financial requirements. Keep reading till the end to understand the features, eligibility, and benefits of availing of this facility.

What is a PNB Loan Against FD?

Loan against FD PNB is a facility that allows all FD account holders of PNB bank to avail of a loan against their fixed deposits. It facilitates you in meeting your financial needs without having to lose any interest payments. It also prevents you from having to pay any penalty charges for breaking your FD.

You must also know that you can’t get an OD against FD PNB for 100% of your fixed deposit. Banks keep a certain margin on the total amount of loan you can avail against it.

Features and Benefits of PNB Bank Loan Against FD

Here are some major benefits of availing loan against fixed deposit PNB.

  • It allows you to meet your financial needs without having to break your fixed deposit.
  • It prevents banks from incurring any premature withdrawal charges, and you also get to keep your interest income on the FD.
  • As you are already a customer of PNB, availing a loan against FD PNB becomes quite convenient. You don’t need to go through the entire process of getting it approved and sanctioned.
  • No need to submit any document.
  • Interest charges are much less if you compare it with a personal loan.
  • The entire process can be completed online in very little time.
  • You can avail of this loan facility from any PNB branch. You don’t need to visit the home branch specifically for it.
  •  If you have multiple fixed deposits, you can combine them all to get OD against FD PNB.
  • You can also avail of the chequebook facility to withdraw from your overdraft account when needed.

Some salient features of obtaining a loan against your fixed deposit in PNB bank follows.

  • You can avail of this loan only against fixed deposits and not on any certificate of deposits.
  • You will not be allowed to make any partial withdrawals from the fixed deposit against which you have obtained a loan.
  • The bank maintains a margin of 5% if the remaining maturity period of FD is up to 2 years.
  • The bank maintains a margin of 7.5% if the remaining maturity period of FD is between 2-3 years.
  • The minimum advance amount is ₹25,000, which can go up to ₹100 lakhs.
  • The maximum tenure for a loan against fixed deposit FD PNB is either 3 years or the remaining FD maturity period, whichever is less.

PNB Loan Against FD Interest Rate

Refer to the table below to understand the interest rates associated with loans against FDs offered by PNB:

Type of BorrowerRate of Interest
General public0.75% above the interest rate applicable on the FD.
For staff membersIf the loan is up to ₹10 lakhs, then the interest rate is at par with the FD interest. Otherwise, it is 1% above your applicable FD interest rate.

Eligibility Criteria for Availing Loan Against PNB FD

The only eligibility criteria for availing loan against FD in PNB is that the customer must be using retail internet banking service or the PNB One app.

How Can I Apply for a Loan Against PNB FD?

There are two ways to apply for OD against FD PNB. One is through retail Internet banking, and the other is through the official mobile banking app of PNB, i.e. PNB One. Follow these steps to avail of the overdraft through retail Internet banking.

  • Step 1: Log in to your Retail banking.
  • Step 2: Navigate to and click on “Manage Account.”
  • Step 3: Now click on “Open OD account against FD.”
  • Step 4: Once you see the dropdown, click on the FD against which you want to avail the loan.
  • Step 5: You will now be able to see the maximum amount you can avail of as a loan. Enter the amount you want as a loan. It must be less than or equal to the eligible amount.
  • Step 6: Read the Terms and Conditions on the screen and click the “Agree” button.
  • Step 7: The screen will display your OD account number, and you can also see it under “Operative Account” the next day.

If you want to avail loan against fixed deposit PNB through the official mobile app, follow these steps.

  • Step 1: Log in to your PNB One account.
  • Step 2: Navigate to the “Service” section and click on it.
  • Step 3: Click on “Accounts” and then “OD against FD.”
  • Step 4: Read and accept the terms and conditions.
  • Step 5: Select the FD account against which you want the loan if it is eligible for the facility.
  • Step 6: Fill in the amount you want as a loan and click “Continue.”

How Much Loans Can I Avail on PNB Fixed Deposit?

The bank has prescribed a percentage of margin that will be deducted from the total FD amount to determine the eligible loan amount. This margin depends upon the maturity period remaining at the time when you avail loan against FD PNB.

The margin for the general public is:

  • 5% if the remaining maturity period is up to 2 years.
  • 7.5% if the remaining maturity period is more than 2 years but less than 3 years.

If you are a staff member, the margin shall be:

  • 5% if the OD amount is up to ₹10 lakhs.
  • As applicable to the general public if the OD amount exceeds ₹ 10 lakhs.


Availing OD against FD PNB is quite a simple process, and it comes with several advantages. The application process is hassle-free and very fast as well. You can get your OD account functioning by the next date of application. So next time, instead of breaking your FD for monetary needs, take a loan against your FD.


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