Shriram City Union Finance Ltd. (Shriram City), has hiked its fixed deposit rates by 5 to 25 basis points (0.05% p.a. to 0.25% p.a.) across different tenures. With this hike, senior citizen customers can earn interest up to 8.80% on FDs while others can get up to 8.30% interest. The revised interest rate will be effective from Oct 14, 2022.
Shriram City is a financier to Small Business Enterprises and India’s largest two-wheeler financer (based on the number of 2W financed) and part of the Shriram Group. It will also provide additional interest of 0.25% p.a. on all Renewals, where the deposit is matured.
Shriram City has also introduced a special benefit for women, with an additional 10bps p.a (0.10%) to be paid on all FD rates to women depositors.
Also Read: Senior citizens to get 8% on this bank’s fixed deposit – Check details
Shriram City is a non-banking finance company focused on the rural and semi-urban sectors. The company’s Long term credit rating is at AA by CRISIL, ICRA and India Ratings. Shriram City’s fixed deposit comes with a”MAA+/ with Stable Outlook” rating by ICRA (Indicates high credit quality). Shriram City offers both cumulative and non-cumulative term deposits.
Interest rates on Fixed Deposits
| Tenure | Existing Interest Rate (p.a.) | Revised Interest Rate (p.a.) WEF Oct 14 2022 | Increase in Interest rate (p.a.) |
| 12 months | 6.75% | 7.00% | 0.25% (25 basis points) |
| 18 months | N.A. | 7.30% | new rates |
| 24 months | 7.25% | 7.50% | 0.25% (25 basis points) |
| 30 months | 8.00% (Only online) | 8.00% (Offline enabled now) | – |
| 36 months | 8.00% | 8.05% | 0.05% (5 basis points) |
| 42 months | N.A. | 8.15% | new rates |
| 48 months | 8.15% | 8.20% | 0.05% (5 basis points) |
| 60 months | 8.25% | 8.30% | 0.05% (5 basis points) |
Additional interest of 0.25% p.a. will be paid on all Renewals, where the deposit is matured.
Additional interest of 0.10% p.a. will be paid to Women Depositors (new feature).
(Source: Shriram City)
Should you invest?
The fixed deposits offered by NBFCs are subject to the directions issued by the Reserve Bank of India under Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016. These deposits do not enjoy the Rs 5 lakh deposit insurance guarantee offered by banks as per RBI rules. Hence, you should be cautious before investing.
“Though the fixed deposits of the Company are within its regulatory framework, RBI does not undertake any responsibility for the repayment of deposits/discharge of liabilities by the company. The depositor is advised to satisfy himself about the financial position and all relevant aspects before placing his deposit,” Shriram City says on its website.