If you're interested in raising cash without having to sell investments, borrowing against an existing asset is a good option. Not all assets are equal to lenders, though. In 2025, fixed deposits (FDs), gold, and shares remain popular collateral options—but with differing lending experiences. Having an idea how they compare to each other on risk, loan-to-value (LTV), and interest rate will allow you to make an informed decision.
Loan against fixed deposits
Fixed deposits give one of the safest options of borrowing. Banks allow you to borrow between 90–95% of the FD value, and the lender already possessing the FD means that it is processed rapidly with minimal documentation. The interest rate is usually 1–2% over the FD rate, so it is even cheaper than unsecured loans. This is only achievable if you have a deposit held at the bank, though.
Loan against gold
Gold loans continue to be in demand in India as they are processed quickly and eligibility is not checked too much. Coins and jewellery both are acceptable to lenders and are given with up to 75% of the worth of gold. Interest costs can be between 9% to 14% in 2025 depending upon the lender and the term. The prices of gold can even fluctuate, and if prices go down, the lender could ask for additional security or prepayment.
Loan against shares
If you have listed equity shares or mutual funds, you can borrow against them by mortgaging them to a bank or NBFC. It comes in handy if you do not want to exit the market. Lenders are, however, selective and make loans only against approved stocks. The LTV ratio is also lower—around 50%—and interest rates may be between 10–13%. Once again, if the value of the share goes down significantly, you would need to top up the collateral or the security might have to be sold.
Which one to choose?
Choose a loan against FDs if you like a low-interest, hassle-free option and already have an FD. Choose a gold loan if you need instant access to funds and possess idle jewellery. Choose a loan against shares only if you are prepared to bear market-linked risk and your portfolio consists of approved stocks. Each option is for a purpose—it's all dependent on your risk appetite, need for urgency, and which assets you are willing to pledge.
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