Loan Against FDR (plus minimum Coupon Rate + up to 2%)

A Loan Against Fixed Deposit (LAFD / FD loan / loan against FDR) is a secured loan where you pledge your existing fixed deposit receipt to the bank as collateral and borrow against it, without breaking the FD. It is offered by virtually every commercial bank, development bank and finance company in Nepal to FD holders who need short-term liquidity but do not want to prematurely close their deposit and lose accrued interest. The bank places a lien on the FD and lends up to 90% of its value (typically 80-85% for foreign-currency FDs), while the deposit keeps earning its contracted interest. It is one of the fastest, lowest-documentation loans available — pricing is usually the FD coupon rate plus a small premium (commonly 2%), and small-ticket loans (e.g. up to NPR 2 lakh at NIC Asia) can be disbursed instantly through mobile/internet banking with no paperwork.