LOD
Loan Against Deposits
What LOD means
Two common meanings in Indian lending: a Loan Against Deposits — a loan or overdraft secured by your fixed deposit — or, in home loans, the List of Documents a lender issues acknowledging the original papers it holds.
Example
Against a ₹5 lakh FD, a bank lending up to 90% of the deposit value (as SBI does) can give you a ₹4.5 lakh loan or overdraft at a small margin over the FD rate, while the FD keeps earning interest under lien.
Why it matters
LOD is used for two different things in Indian lending, so read it in context.
In deposits, LOD means Loan Against Deposits: a loan or overdraft secured by your own fixed deposit. Because the deposit secures it, approval is quick, there is usually no credit check, and the rate is typically set at a small margin above the FD rate. Banks lend up to a set share of the deposit value, and the FD carries a lien until the loan is repaid.
In home loans, LOD often means List of Documents: the acknowledgement a lender gives you listing every original document — sale deed, title deeds, receipts — it is holding as security. Keep it safe. When the loan is closed, the same list is used to check that every original is returned.
Because the abbreviation is ambiguous, ask what it means whenever you see it in your own paperwork.
Where you'll see it
A Loan Against Deposits appears on your FD statement as a lien and in your loan or overdraft account. A List of Documents is issued at home loan or LAP disbursement, signed by the lender, and should be matched against the documents returned at closure.
Common questions about LOD
What is the full form of LOD in banking?
Usually Loan Against Deposits — a loan or overdraft secured by a fixed deposit. In home loans, LOD can also mean List of Documents, the lender's acknowledgement of the original property papers it holds.
How much can I borrow against my fixed deposit?
Banks typically lend up to 75%–90% of the deposit value, depending on the bank. SBI, for example, lends up to 90% against time deposits. The rate is usually a small margin above the FD rate.
What should I do with the List of Documents after closing my home loan?
Use it to check that every original listed has been returned. The RBI requires lenders to return original property documents within 30 days of full repayment, or pay ₹5,000 per day of delay.
This definition is based on SBI – Loan Against Time Deposits ↗. We link every figure to its primary source — see our data methodology.
Related loan type terms
- Balance TransferMoving an outstanding loan to a new lender who offers a lower interest rate or better terms, reducing the total interest burden. Processing fees and legal costs apply and should be factored into the savings calculation.
- Bridge LoanA short-term secured loan (typically 6–12 months) that provides funds to purchase a new asset before an existing asset is sold. Interest rates are higher due to the temporary and transitional nature.
- Loan Against PropertyA secured multipurpose loan where an owned property (residential, commercial, or industrial) is pledged as collateral; funds can be used for business expansion, education, medical emergencies, or any lawful purpose.
- Overdraft FacilityA revolving credit arrangement where you can withdraw up to a sanctioned limit, repay at any time, and re-borrow; interest is charged only on the daily outstanding balance.
- Top-up LoanAn additional loan disbursed by the existing lender on top of an already-running loan, secured against the same collateral, after a satisfactory repayment track record. Interest rates are typically at par with the underlying loan.