A CD loan, or certificate of deposit loan, is a loan that is secured by a certificate of deposit. A CD is a time deposit account that offers a fixed interest rate and a specific time period during which the account must be held. CD loans are typically used to finance short-term needs, such as a home renovation or a car purchase.

The interest rate on a CD loan is typically lower than the interest rate on a personal loan or a credit card. In addition, the interest on a CD loan is typically tax-deductible.

To obtain a CD loan, …