This is a great way to get a short term loan.
Instead of breaking the FD, one can apply for loan against FD.
FD can be pledged as security
The loan amount depends on the FD deposit amount
No need to break FD and premature withdrawal
Application Form, FDR, EDC, Cancel Check for Non-cumulative FD
The loan amount can go up to 95% of the deposit amount.
Loan must be repaid before maturity of FD
Can be repaid in lump sum or in installment