Are you looking for a reliable and profitable investment option that can provide you with steady and assured income? If yes, then you might want to consider investing in a fixed deposit (FD).
A fixed deposit is a type of investment where you deposit a lump sum amount of money with a bank or a non-banking financial company (NBFC) for a fixed period of time and earn interest on it.
FDs are popular among investors because they offer guaranteed returns, safety of capital, tax benefits, and easy liquidity.
One such FD that stands out from the rest is the Shriram Finance FD. Shriram Finance is one of the leading NBFCs in India, offering Shriram Unnati Fixed Deposit schemes with high interest rates and flexible tenures.
In this article, we will provide you with a comprehensive guide on Shriram Finance FD, its features, benefits, eligibility, interest rates, and how to apply online.
Shriram Finance FD: Features and Benefits
Shriram Finance FD offers two types of FD schemes: cumulative and non-cumulative. The cumulative scheme allows you to reinvest the interest earned on your deposit and receive a lump sum amount at maturity.
The non-cumulative scheme allows you to receive regular interest payouts on your deposit, either monthly, quarterly, half-yearly, or yearly. The table below shows the difference between the two schemes in terms of interest payout options, maturity value, and effective yield.
| Scheme | Interest Payout Option | Maturity Value (for Rs. 1 lakh deposit) | Effective Yield (p.a.) |
|---|---|---|---|
| Cumulative | None | Rs. 1,92,378/- | 14.47% |
| Non-Cumulative | Monthly | Rs. 1,00,000/- | 9.20% |
| Non-Cumulative | Quarterly | Rs. 1,00,000/- | 9.39% |
| Non-Cumulative | Half-Yearly | Rs. 1,00,000/- | 9.59% |
| Non-Cumulative | Yearly | Rs. 1,00,000/- | 10.03% |
As you can see, the cumulative scheme of Shriram Finance FD offers a higher effective yield than the non-cumulative scheme, as the interest is compounded annually.
However, the non-cumulative scheme may be suitable for those who need regular income from their investment. You can choose the scheme that best suits your financial goals and needs.
Some of the features and benefits of Shriram Finance FD are:
High Interest Rates of Shriram Finance FD
Shriram Finance FD offers interest rates up to 9.20%* p.a., which is higher than most banks and other NBFCs. Moreover, senior citizens and women get an additional interest rate of 0.50%* p.a. and 0.10%* p.a. respectively, making it an attractive option for them.
*The interest rates are subject to change from time to time, so you can check the latest rates on the Shriram Finance website or app before investing.
Safety and Security
Shriram Finance FD is rated ” [ICRA]AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research, which indicate a high degree of safety and low credit risk.
Shriram Finance FD is also a member of the Deposit Insurance and Credit Guarantee Corporation (DICGC), which provides insurance cover of up to Rs. 5 lakh per depositor per bank/NBFC in case of any default or failure.
Flexible Tenure Options by Shriram Finance FD
Shriram Finance FD allows you to choose the tenure of your deposit from 12 months to 60 months, depending on your liquidity and maturity preferences. You can also renew or extend your deposit at the prevailing interest rates at the time of renewal or extension.
Minimum Deposit Amount
Shriram Finance FD requires a minimum deposit amount of Rs. 5000/-, which makes it affordable and accessible for all types of investors.
You can also make multiple deposits of different amounts and tenures, as long as the total deposit amount does not exceed Rs. 1 crore per depositor per branch.
Easy Online Application Process of Shriram Finance FD
Shriram Finance FD can be easily applied online with minimal documentation and hassle-free verification. You can visit the Shriram Finance website or download the Shriram One app and follow the simple steps to open your FD account.
You can also track your deposit status, view your interest statement, and download your fixed deposit receipt online.
Premature Withdrawal Facility
Shriram Finance FD allows you to withdraw your deposit before the maturity date, in case of any emergency or urgent need. However, you will have to pay a nominal penalty charge of 2%* on the applicable interest rate for the period for which the deposit has been held.
*The penalty charge is subject to change from time to time, so you can check the latest terms and conditions on the Shriram Finance website or app before withdrawing your deposit.
Loan Facility on Shriram Finance FD
Shriram Finance FD also offers you the option of availing a loan against your deposit, in case you need funds without breaking your deposit.
You can get a loan up to 75% of the deposit amount, at a competitive interest rate of 2% above the deposit rate.
Nomination Facility
Shriram Finance FD also provides you the facility of nominating a person who can claim the deposit amount in case of your death.
You can nominate a single person or multiple persons, and change or cancel the nomination at any time during the tenure of the deposit.
The nomination facility is governed by the provisions of the Banking Regulation Act, 1949 and the rules made thereunder.
TDS Applicable
Shriram Finance FD is subject to tax deduction at source (TDS) as per the Income Tax Act, 1961 and the rules made thereunder.
The TDS rate is 10%* for resident individuals and 20%* for non-resident individuals, unless you submit a valid Form 15G/15H or any other exemption certificate.
The TDS amount will be deducted from the interest income and remitted to the government on your behalf. You can also claim the TDS amount as a credit in your income tax return.
*The interest rates, penalty charges, and TDS rates are indicative and may vary from time to time. Please refer to the Shriram Finance website or app for the latest rates and terms and conditions.
Shriram Finance FD: Eligibility and Documents Required
Before you apply for Shriram Finance FD, you need to check whether you meet the eligibility criteria and have the necessary documents ready. The eligibility criteria and documents required for investing in Shriram Finance FD are:
Eligibility Criteria for Shriram Finance FD
- Shriram Finance FD is open to the following categories of investors:
- Resident individuals, either singly or jointly.
- Partnership firms, Hindu Undivided Families (HUFs), trusts, societies, clubs, associations, etc…
- The minimum age of the applicant should be 18 years or above.
- The applicant should have a valid PAN card and Aadhaar card.
- The applicant should have a bank account with cheque book facility.
Documents Required for Shriram Finance FD
The documents required for opening a Shriram Finance FD account are:
- A duly filled and signed application form, which can be downloaded from the Shriram Finance website or app.
- Self-attested copies of PAN card, Aadhaar card, address proof, and identity proof. The address proof and identity proof can be any of the following: passport, driving license, voter ID card, utility bill, bank statement, etc.
- A cheque or demand draft in favour of Shriram Transport Finance Company Ltd., for the deposit amount. The cheque or demand draft should be crossed “A/c Payee Only” and should have the applicant’s name, address, and contact number on the reverse side.
- Two recent passport size photographs of the applicant and the nominee. The photographs should be affixed on the application form and the nomination form, and should be signed across by the applicant and the nominee.
- The verification and submission of the documents can be done online on the Shriram Finance website or app.
Once the verification and submission of the documents are completed, you will receive a confirmation email/SMS from Shriram Finance, and your Shriram Finance FD account will be opened.
You will also receive your fixed deposit receipt and interest certificate by courier or email. You can also download them from the Shriram Finance website or app.
*The interest rates, penalty charges, and TDS rates are indicative and may vary from time to time. Please refer to the Shriram Finance website or app for the latest rates and terms and conditions.
Shriram Finance FD: How to Apply Online
If you are interested in investing in Shriram Finance FD, you can apply online in a few easy steps. You do not need to visit any branch or fill any physical forms.
You can complete the entire process from the comfort of your home or office, using your smartphone or computer. Here is how you can apply online for Shriram Finance FD:
- Step 1: [Click here] to apply for Shriram Finance FD. You will be re-directed to the Shriram Finance FD website.
- Step 2: Enter your name, pin code, and email id. You will receive a welcome email from Shriram Finance with your login credentials.
- Step 3: Enter your PAN details, Aadhaar details, and other basic details. You will also need to verify your mobile number using an OTP sent to your registered number.
- Step 4: Enter your investment amount, interest payout option, and tenure in months. You will see the available interest rates and the expected interest amount for your chosen amount. You can also use the [FD calculator] to estimate your maturity value and effective yield.
- Step 5: Select your preferred payment gateway and complete the payment process using net banking, debit card, credit card, UPI, or NEFT/RTGS. You will receive a confirmation email/SMS from Shriram Finance with your transaction details and reference number.
- Step 6: Enter your KYC details again, such as PAN, Aadhaar, address, and marital status. You may also need to upload your ID proof, address proof, Aadhaar picture (front and back), and selfie.
- Step 7: Enter your bank details, such as account number, IFSC code, and branch name. The interest amount will automatically get credited to your bank account as per your chosen interest payout option.
- Step 8: After the application completion, you will receive your FD e-receipt and confirmation email/SMS from Shriram Finance. You can also download your FD e-receipt and interest certificate from the Shriram Finance website or app.
*The interest rates, penalty charges, and TDS rates are indicative and may vary from time to time. Please refer to the Shriram Finance website or app for the latest rates and terms and conditions.
Shriram Finance FD Calculator
Conclusion
In this article, we have provided you with a comprehensive guide on Shriram Finance FD, a safe and high-return investment option for investors looking for steady and assured income.
We have covered the features, benefits, eligibility, interest rates, and how to apply online for Shriram Finance FD.
If you are interested in investing in Shriram Finance FD, you can visit the Shriram Finance website or download the Shriram One app and follow the simple steps to open your FD account.
You can also track your deposit status, view your interest statement, and download your fixed deposit receipt and interest certificate online.
If you have any queries or need any assistance, you can contact the customer care number or visit the nearest branch of Shriram Finance.
*The interest rates, penalty charges, and TDS rates are indicative and may vary from time to time. Please refer to the Shriram Finance website or app for the latest rates and terms and conditions.
FAQs
Is Shriram Finance safe for FD?
Yes, Shriram Finance is safe for FD, as it is rated ” [ICRA]AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research, which indicate a high degree of safety and low credit risk. Shriram Finance is also a member of the Deposit Insurance and Credit Guarantee Corporation (DICGC), which provides insurance cover of up to Rs. 5 lakh per depositor per bank/NBFC in case of any default or failure.
What is the Shriram Finance FD rate today in 2023?
The FD rate in Shriram Finance today is up to 9.20%* p.a., including 0.50%* p.a. for senior citizens and 0.10%* p.a. for women. The FD rate varies depending on the tenure, interest payout option, and category of the investor. You can check the latest FD rates on the Shriram Finance website or app before investing.
Is Shriram Finance FD backed by RBI?
Shriram Finance FD is not backed by RBI, as Shriram Finance is not a bank but a non-banking financial company (NBFC). However, Shriram Finance is regulated by RBI and follows the guidelines and norms issued by RBI for NBFCs. Shriram Finance is also registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934.
Is Shriram Finance FD tax free?
No, Shriram Finance FD is not tax free, as it is subject to tax deduction at source (TDS) as per the Income Tax Act, 1961 and the rules made thereunder. The TDS rate is 10%* for resident individuals and 20%* for non-resident individuals, unless you submit a valid Form 15G/15H or any other exemption certificate. The TDS amount will be deducted from the interest income and remitted to the government on your behalf. You can also claim the TDS amount as a credit in your income tax return.
Who is the owner of Shriram Finance?
The owner of Shriram Finance is Shriram Transport Finance Company Ltd., which is a part of the Shriram Group, one of the largest and most respected financial services conglomerates in India. Shriram Transport Finance Company Ltd. is the flagship company of the Shriram Group, and is the largest asset financing NBFC in India, with a focus on financing pre-owned commercial vehicles.
Why invest in Shriram FD?
You should invest in Shriram FD if you are looking for a reliable and profitable investment option that can provide you with steady and assured income. Shriram FD offers attractive interest rates, flexible tenures, and various benefits for different categories of investors. Shriram FD is also safe and secure, as it is rated ” [ICRA]AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research, and is also insured by DICGC.
How to open FD with Shriram Finance?
You can open FD with Shriram Finance by following the steps given in the article. You can either apply online or offline, depending on your convenience. You will need to fill and sign the application form, submit the required documents, and make the payment for the deposit amount. You will also need to verify your mobile number, PAN, and Aadhaar details. You will receive your FD e-receipt and confirmation email/SMS from Shriram Finance after the completion of the process.
Is Shriram Finance FD insured by DICGC?
Yes, Shriram Finance FD is insured by DICGC, which is a subsidiary of RBI. DICGC provides insurance cover of up to Rs. 5 lakh per depositor per bank/NBFC in case of any default or failure. This means that if Shriram Finance fails to pay back your deposit amount or interest, you can claim up to Rs. 5 lakh from DICGC. However, the insurance cover is applicable only for the principal and interest amount, and not for any other charges or fees.
*The interest rates, penalty charges, and TDS rates are indicative and may vary from time to time. Please refer to the Shriram Finance website or app for the latest rates and terms and conditions.
