Banks allow individuals to use the funds from their fixed deposit accounts without cancelling the deposits. This is known as a loan against FD. Here are some things to keep in mind about this service: It is possible to take out a loan against a fixed deposit (FD) from the same bank where the FD is held. Most banks offer loans that are equal to 90% of the FD’s value. A loan against an FD can be a good option for those with a low credit score or CIBIL rating. Making timely payments on the loan can also help improve the borrower’s credit rating. The loan term should be within the FD’s maturity period.