When a person is in need of short-term emergency funds, loan against fixed deposit (FD) can work out to be a good option
Interest rates are lower than on personal loan and loan against gold
There is no processing fee, paperwork is minimal, it's sanctioned quickly, and repayment tenure is flexible. The borrower needs to repay it before the FD matures.
Your FD continues earning interest, while the loan comes at a rate that is 100-200 basis points above your FD rate. That means the effective rate of interest is just 1-2% on the loan