Loan default against FD may lead to deposit recovery
In short
If you borrow against a fixed deposit and then do not repay, the lender can use the FD to recover the money, according to the report. It also says you may still owe more if the deposit does not cover the full loan.
This matters because the FD you thought was safe could be at risk. The summary does not explain the exact recovery process or when any extra amount must be paid.
What the reporting says
A borrower who defaults on a loan taken against a fixed deposit may lose the FD itself, according to the publisher summary. The reporting says lenders can recover dues from the deposit and that a shortfall may still remain payable. The immediate consequence is financial risk for borrowers, but the article summary does not specify recovery steps, rates, or legal timelines.
Why it matters
The publisher summary says defaulting on a loan against a fixed deposit can cost the borrower the deposit itself. It also says lenders can recover dues from the FD and that a shortfall may still be owed. The story is about borrower risk and lender recovery, but it does not state the exact repayment rules or any specific bank action.