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Can I Get a Loan on Fixed Deposits as an unemployed with quick approval?


Sometimes you need urgent money without pledging some of your priciest assets like a car or home, etc.

It is natural to postpone such loans owing to fear and hesitation to lose the asset to the provider. Secured loans are ideal if you have consistent income, good employment history but a bad credit profile, or seeking affordable interest and other terms.

In that condition, you may still bet your intangible and mostly forgotten “Fixed Deposits” to secure quick and flexible cash.

The blog narrates everything about loans on fixed deposits and the eligibility criteria.

What are loans on fixed deposits?

These are facilities where the fixed deposit acts as collateral on a loan. It implies the loan provider considers several aspects, like the FD amount and the term to provide you with the loan.

Under this, one may not touch the FD or use the money, even if matured, until one ultimately repays the loan amount plus interest. These loans are ideal for immense but short-term financial needs.

It could be like a massive bill of hospitalization, renovating a house/office stuck by fire, investing in a self-employed business set-up, wanting to help your children/grandchildren in urgent cash need for education fees, etc. Precisely, it is ideal for immediate but hefty money circumstances.

How Do These Loans Operate?

To get this fixed deposit or FD loan, you must have a valid and registered FD account with a bank. Once you can assure of the same, you can apply for the further process.

The amount you can borrow entirely depends on the bank’s terms. It also depends on the amount of the FD, the maturity date, and the employment/income figure of the person.

As per the rules, one can borrow 85% of the FD amount (total value of the deposit, including the interest earned)

Post that, here is how the process follows:

  • You approach a bank to get a loan on a fixed deposit
  • The bank will analyse the eligibility basing income and FD status
  • The lender may request the document like personal ID, address proof, income proof, and FD slip,
  • If the lender finds no projected threat of loss of money, he immediately releases the funds.


Are Interest Rates on FD Loans High or Competitive?

The interest rate on Fixed deposit loans is higher than on personal loans. The reason – the risk for the lender is higher. In personal loans, the loan generally is collateral-based, granting sufficient scope to cover the loss. However, in FD loans, the amount of FD may vary as per the affordability of the person and hence, share more risks.

In addition to the interest rates, the lender may ask you to pay the processing fee and associated fees. It makes the loan costlier. Before signing off on the agreement, it is wise to analyse it for the hidden cost (If any per se).

What Is the Loan Term on Loans on Fixed Deposit?

The loan term on these loans is akin to quick personal loans, i.e., 12 months. The lender allows the borrower to pay off the loan quickly without defaulting. Some providers extend the term to 336 months to grant immense flexibility to borrowers to pay the complete amount quickly.

How Are FD Loans More Advantageous Than Other Ways of Financing?


There are several advantages of taking out money on a fixed deposit:

  • You continue to earn interest on the amount
  • You get money quickly and swiftly in your account
  • Ideal for bad and no credit history or want to avoid high-interest rate personal loans
  • The amount in FD acts as a deposit, which means you can borrow a high amount within the FD amount limit
  • quick approval without any paperwork or extended processing

Are FD Loans a Safe Option For Unemployed Individuals?

Yes and no.

As the blog mentioned above states, the lender prioritises income and FD amount to decide whether to approve the loan. Similarly, the finances of employed and unemployed differ significantly.

In the latter case, the lender may hesitate to approve the FD loan as the person lack a regular income source. And he may pose some conditions for the unemployed to qualify for the same:

It can be:

  • A guarantor
  • A personal guarantee or asset
  • Additional income sources apart from benefits
  • Get a co-signer on the loan

When you are low on income and substance, you will hardly like to stake your minimal possessions to get the loan. Do so only if you are sure about repaying the loan in instalments timely.

Else you might lose your assets too in the process.

A co-signer may help you meet the repayments. But the question is- can he make it patiently until you get another job opportunity?

How To Get Quick Cash Help as An Unemployed Without Guarantor?

In unemployment, individuals suffer:

  • Credit loss
  • Income loss
  • Minimal savings loss
  • High liabilities

Getting an FD loan in situations like these means additional trouble as these are costlier than personal loans. You could have to call your family or friends to pay off the loan timely or contact the lender to grant you some more time. The interest will continue to accrue on the loan within that time frame.

It would reduce your minimal sustainable capacity and lead to default too. And defaulting on a loan symbolise credit score loss and budget imbalance.

Thus, if you could instead switch to a lower amount without any guarantor or broker interference, pick very bad credit loans with no guarantor and no broker. You can get these from a direct lender in the UK, like EasyPolicyLoans.

These loans allow you to counter any short-term and emergency purposes with:



Individuals facing an extreme cash crunch, like the unemployed, can apply and get an instant quote at the portal. We identify the person’s affordability with minimal income proof – benefits income or other income sources if you need an amount exceeding £3500.

You can use these loans for any requirements per se. But it is highly preferable for emergency requirements or cash constraints.

It is better than FD loans if you struggle to meet minimal needs as an unemployed. It does not hamper your budget’s bottom line.

If your needs are small and you can manage repayments at an existing income source, you may get these 15-minute loans from direct lenders like us at the best terms and interest rates.

Yes, these are same-day loans to attend to the need with immediate effect.

Bottom line

FD loans are a good option if you have a stable income source but want to avoid stake collateral. You can borrow a huge amount as per your FD amount this way. However unemployed may need a more tangible income source to get one. They can tap short-term loans for emergencies.

Description: If you are wondering whether FD loans are ideal for you or not, the blog will help you decide. Alongside, it states the best option for the unemployed.