Loan Against FD vs. Personal Loan: Which is Cheaper for Urgent Cash Needs?

• For sudden financial needs, taking a loan against your Fixed Deposit (FD) is often a cheaper option than a personal loan.
• A loan against FD allows you to borrow 75-90% of your FD value while keeping your deposit secure and earning interest.
• Interest rates on loans against FD are typically 1-2% higher than your FD's interest rate, making it cost-effective.
• Personal loans are unsecured, leading to significantly higher interest rates (10-18% or more) and additional processing fees.
• Choose a loan against FD if you have substantial FDs; consider a personal loan for larger needs or specific goals, but always compare costs.