Mumbai: Shriram Finance has hiked interest rates on fixed deposits (FDs) up to 40 basis points while going fully digital with its 15-month Unnati FDs. The company offers a 9% interest rate on deposits between three to four years as against 8.6% earlier.
The rate increase by Shriram Finance comes two weeks after Bajaj Finance increased interest rates by 60 basis points on digital deposits, offering 8.85% for senior citizens. Bajaj Finance has a triple-A rating for its fixed deposits.
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“Customers would be able to obtain a Shriram Unnati FD with a tenor of 15 months at a rate of interest of 8.15%. Senior citizens and women depositors can get an additional benefit of 0.50% and 0.10%, respectively, while all depositors can claim an additional benefit of 0.25% on renewal of the FDs, done digitally or through online channels,” a statement issued by the company said.
While Unnati FDs with other tenors will be available both online and offline, the specific 15-month FDs will only be available for purchase through the Shriram One App and its website. The minimum deposit amount would be Rs 5000. Along with the new launch, SFL has also made its Fixed Income Plan (FIP), or Recurring Deposit (RD), currently marketed through digital and offline modes, exclusive to the Shriram One App and SFL website.
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“Young Investors are becoming increasingly digital-savvy and are keen to explore non-traditional means of investing in traditional products. With our new digital-only offerings, we wish to accelerate the digital India movement and enable depositors to grow their wealth conveniently,” said Umesh Revankar, executive vice chairman of Shriram Finance.
The company has hiked rates on other tenors as well. For deposits between 12 and 23 months, the interest rate is 8.5%, as against 8.10 % earlier. The 24 – 35 month deposits now yield 8.75% against 8.40 % earlier.
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The minimum deposit amount would be Rs 1000 a month. The digital-only FD and the FIP (Recurring Deposit) scheme will be available on the Shriram One app and the Shriram Finance website from April 22, 2024. From that date onwards, customers would no longer be able to book FIPs physically at branches or through the company’s representatives.
As of December 31, 2023, the company’s consolidated net worth was Rs 47,690 crore, and its gearing was 3.9 times. On a standalone basis, its net worth was Rs 47,054 crore, and its gearing was 3.8 times as of the same date. Rating agency Crisil has assigned the company an AA+ rating.
