Interestingly, the highest interest rate being offered by STFC and Shriram City is more than the interest rates being offered by the Government of various small savings schemes
Shriram Transport Finance Company (STFC) and Shriram City Union Finance Ltd (Shriram City) are offering one of the highest interest rates on their fixed deposit accounts. The highest interest rate being offered by both STFC and Sriram City is 7.75 per cent per annum on non-cumulative deposits of 60 months (5 years). On cumulative deposit, the effective yield per annum on offer is up to 9.05 per cent.
Shriram City is a Chennai-based SME, two-wheeler, gold financing Non-Banking Financial Company (NBFC), and STFC is a Mumbai-based asset financing NBFC. Both the NBFCs are part of the Shriram Group. In July 2021, SFTC and Shriram City raised retail FDs worth Rs 2,000 Crore. The NBFCs are offering attractive interest rates and boasts of a large customer base of 6.4 million customers.
In a statement today, Shriram Group said that Shriram City raised retail FDs worth Rs 390 crore while STFC raised Rs 1,610 crore in July 2021. These are the highest ever funds raised from retail FDs for both entities. In Q1FY22, Shriram City witnessed Retail FD growth of 33% to Rs 5,761 crore, while STFC saw a growth of 49 per cent to Rs 17,903 crore.
Shriram City has a customer base of 4.3 million customers spread across 926 branches. STFC has a customer based of 2.1 million customers.
STFC, Shriram City Fixed Deposit rates
Interestingly, the highest interest rate being offered by STFC and Shriram City is more than the interest rates being offered by the Government of various small savings schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and Kisan Vikas Patra (KVP).
While the PPF is currently offering 7.1% interest rate, SSY, KVP and NSC are currently providing 7.6%, 7.1% and 6.9% interest rates respectively. However, all these small savings schemes offer several other benefits that may be more useful for investors.
Commenting on the record FDs in July 2021, Y.S. Chakravarti, MD & CEO, Shriram City said in the statement: “We are constantly working on providing our customers better products, be it on the credit or deposit side and it is reassuring to see how many customers choose to place their hard-earned money with us. The rates offered by the Shriram Group entities are one of the most attractive in the industry and backed by a strong parentage it makes for a great investment, especially for risk-averse investors.”
Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance Company Limited said: “At Shriram Transport we have invested extensively in the way we do business digitally, which has the potential to draw deposits and service loans from a broader pool of potential customers.”