A Loan Against Deposit (LAD) is a type of secured loan where an individual can borrow funds by pledging their fixed deposits (FDs) or recurring deposits (RDs) as collateral. This allows the borrower to access liquidity without having to break their deposits prematurely. The loan amount is typically a percentage of the deposit’s value, and the interest rate on the loan is often lower than unsecured loans. Repayment terms are flexible, and the loan can be repaid through EMIs or lump sum payments. The major advantage of this loan is that the borrower can continue earning interest on the pledged deposit while utilizing the loaned amount, making it a convenient option for those who need funds but don’t want to liquidate their investments. However, failure to repay the loan may result in the lender adjusting the outstanding amount by using the deposit as repayment.