NBFC FD Interest Rates 2025
In India, a lot of people invest in fixed deposits, as it is a great investment that offers attractive returns. Along with commercial banks, nowadays non-banking financial corporations (NBFCs) have also started offering fixed deposits to their customers. NBFC FD Interest rates for different organizations range from 6.15% p.a. to 8.50% p.a.
Usually, the interest rates offered by commercial banks are lower than those at NBFCs. NBFCs offer greater interest rates due to the 'credit risk' that is associated with NBFCs.
However, not every NBFC offers a higher interest rate.
Here Are a Few NBFC Organizations That Provide Better Interest Rates
Interest rates for amounts less than and greater than 2 crores for tenures ranging from 1 year to 5 years.
NBFC Organization | Interest Rate for 1 Year | Interest Rate for 3 Year | Interest Rate for 5 Year | Tenure Range |
ICICI Home Finance | 6.85% | 7.15% | 7.15% | 12 months to 60 months |
Bajaj Finance Ltd. | 6.95% | 6.95% to 7.30% | 7.30% | 12 months to 60 months |
HDFC Ltd. | 6.75% | 6.90% | 6.65% | 12 months to 60 months |
LIC Housing Ltd. | 6.70% | 6.85% | 6.90% | 12 months to 60 months |
Manipal Housing Finance Syndicate Ltd. | 8.25% | 8.25% | 7.75% | 12 months to 60 months |
Mahindra Finance | 6.75% | 7.00% | - | 12 months to 36 months |
PNB Housing Finance Ltd. | 7.00% | 7.10% | 7.10% | 12 months to 60 months |
Muthoot Capital Services Limited | 7.65% | 8.50% | 8.50% | 12 months to 60 months |
Shriram Finance Ltd. | 7.00% | 7.60% | 7.60% | 12 months to 60 months |
Sundaram Finance | 6.70% to 7.20% | 7.50% to 8.07% | - | 12 months to 36 months |
FAQs on NBFC FD Interest Rates
- Which factors are considered by NBFCs when deciding the rate of interest on fixed deposits?
NBFCs consider various factors like present repo rates, internal policies, profitability, etc., when deciding the rate of interest on fixed deposits.
- How do NBFCs raise money?
NBFCs raise money through issuing loans for a long duration at a comparatively low interest rate or through Foreign Direct Investment. Other ways for NBFCs to raise money are issuing bonds, issuing commercial paper for small duration loans, etc.
- Is it safe to invest in FD with an NBFC?
Fixed deposits from NBFC having AAA ratings from ICRA and CRISIL are considered safe investments.
- Do NBFCs provide senior citizens with an additional rate of interest on fixed deposit investment?
Mostly NBFCs do provide senior citizens with an additional rate of interest of 0.25% on fixed deposit investment.
- Will interest earned on NBFC fixed deposit be taxed?
Yes, the interest earned on NBFC fixed deposit will be taxed.
- Can NBFCs issue cheques?
No, NBFCs cannot issue cheques as they are not a part of the payment or settlement system.
- Do NBFCs offer a better rate of interest than banks on fixed deposit investment?
Yes, generally, NBFCs do offer a more competitive rate of interest than banks on fixed deposit investment.
News about NBFC FD Interest Rates
Leading NBFCs Bajaj Finance and Shriram Finance Raise Fixed Deposit Interest Rates
Bajaj Finance recently increased its Fixed Deposit (FD) interest rates, offering rates ranging from 7.4% to 8.10%. For FDs with tenures between 12-14 months, the annual interest rate stands at 7.40%. Bajaj Finance FDs are rated AAA/Stable by Crisil. For tenures between 15-23 months, the annual interest rate is 7.5%, while for tenures between 24-35 months, it is 7.8%. For tenures ranging from 36 to 60 months, the annual interest rate reaches 8.10%. The NBFC also offers higher interest rates on special period fixed deposits, such as 7.8% for an 18-month tenure, 7.90% for 22-month FDs, 8.10% for 33-month FDs, and 8.25% for 44-month FDs, effective from 3 April 2024. Another NBFC, Shriram Finance, has also raised its fixed deposit interest rates, offering rates ranging from 7.85% p.a. to 8.80% p.a. for tenures ranging between 12 to 60 months, effective from 9 April 2024. These FDs are rated AA+ (stable) by ICRA. The highest interest rate of 8.80% is offered for 50-month or 60-month deposits. For a 42-month tenure, the interest rate is 8.75%, while for a 36-month tenure, it is 8.7%.
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