1) No need to talk to ladies; next time talk to the manager straight ahead to get this interest rate sorted out.
2) A loan is a loan and your FD is just a fool proof guarantee which the bank will keep with them until you pay it back completely. At the time your FD ends, instead of keeping it unused with the bank, talk to the officials and get it converted to a new Fad of higher amount. BTW
I have less experience of FDs and hence can't comment more in it.
What I mean is:
Suppose maturity value of your FD after 5 years is 5 lac.
If your FD gets matured after 2 years and your loan tenure is 5 years. Then better is to make an another FD of 5 lac from the sum of same FD and enjoy even higher savings. Because bank is by any ways gonna keep the FD with them only as a guarantee, then why not let the money multiply?
3) Loan is a loan and no one will consider it as a cash purchase. Hence you won't face a single income tax issue in this one. Income tax guys have nothing to do with your white money and your FD, if you are paying taxes rightly (which every job doer does) then you can take the loan without any issues.
For any further clarifications you can talk to some income tax advocate or the CA of your company.