May I know hv anyone experienced with pledge fixed deposits to get a loan approved ? When can I withdraw the pledge FD?

FD pledges are usually supplemental to your original loan amount but can never be the main security. For example, you want to borrow RM100,000.00 but the security you are giving to the Bank is only worth RM80,000.00, so you are offered to pledge FD worth of RM20,000.00 to make up for that RM100,000.00. Something like that.

You are required to sign a Letter of Set-Off and maybe a personal guarantee for this FD pledge in favor of the Bank and the terms of this set off is that the Bank can deduct the amount anytime from the FD account whenever it deems proper.

So to your question, no. Once you pledge your FD, you are unable to withdraw the amount until the tenure of your loan ends.

Then how about the accrued interest earned from fixed deposit? I think it should be able to withdraw from FD

Thanks for ur reply. What if refinance?

In simple terms, refinance is like restructuring your loan.

You are applying for a new loan for the property charged to your Bank.

Example:-

You have a loan which you have taken back in 2010 with its outstanding now at RM100,000.00 and interest is 4.0% p.a; and
The Bank introduces a new package where the interest is only at 3.0% p.a.

Of course, in the long run, lower interest rates translate to savings so rather than keep on paying 4.0% p.a. interest, you "re-apply" for a fresh loan under the new package.

Unless you require additional monies, you don't need to take up a large sum of loan amount, you can just take up a loan for the amount just enough to cover the outstanding loan which you owed to the Bank based on the loan you have taken up back in 2010.

meaning to say that if i pledged an amount of example 50k for a loan of 500k, I served the loan more than 4 years, I still unable to withdraw the pledge FD ya?

anyway can I withdraw the money?

it will depend on whether the Bank is satisfied that the current outstanding loan amount still due and owing can be secured by the security in which you have charged/assigned to the Bank for the loan granted - if the Bank is not satisfied then you will not be able to withdraw the FD pledged.

usually, these FD pledges can be cancelled and withdrawn within the first two (2) years of the loan tenure with consistent payment because banks will not request for a substantial amount of cash being put in as FD for security of the loan granted.

unless the FD pledge is cancelled, you cannot touch that money which is why it is called "fixed" deposit however banks cannot stop you from withdrawing but if you withdraw them then you are in breach of the terms to the letter of offer and then the bank will either realize the entire outstanding loan amount immediately and/or sue you for any other ancillary the bank may have against you.