Shriram Transport Finance Company Limited Fixed Deposit
Shriram Transport Finance Company Limited is a leading finance provider especially for the commercial vehicle industry. The company is a part of the Shriram conglomerate which has considerable presence in commercial vehicle financing, insurance and consumer finance. The company was initially set up as a primary lender for customers from agricultural background so as to finance buying of tractors.
The company then slowly expanded to other financial divisions like insurance, consumer banking etc. The Shriram group is present in other non-financial businesses also like property, engineering development and information technology. The company was formed in the year 1979 and has been a registered deposit taking NBFC with the Reserve Bank of India. Shriram Transport Finance has come a long way from financing small truck owners to spreading its reach in other varied verticals of the financial sector. The company currently has a widespread network of branches and other financial partners that help in the distribution of its products and services. Fixed deposits by Shriram Transport Finance Company are a coveted financial product and are available at extremely competitive rates.
The fixed deposits by Shriram Transport Finance Company have been rated FAA+ by the leading rating agency CRISIL while the leading rating agency of India has rated these fixed deposits as MAA+. This means that fixed deposits by Shriram Finance are quite safe to invest in and fetch a reasonable return margin.
What is the eligibility to avail a fixed deposit scheme from Shriram Transport Finance Company?
The following entities are eligible to avail a Fixed Deposit from Shriram Transport Finance Company –
- An individual under his/her name
- Individuals with Joint Account
- Trusts and Foundations
What are the various fixed deposit schemes available from Shriram Transport Finance Company?
Two broad types of fixed deposits are available with Shriram Transport Finance Company. One is cumulative deposits and the other is non-cumulative fixed deposits. Cumulative deposits get the associated interest credited to the depositor’s account at the end of the maturity tenure whereas non-cumulative deposits can have their interest amount credited either monthly or quarterly or half-yearly or yearly.
What is the minimum amount required to open Shriram Transport Finance Company fixed deposit?
The minimum deposit amount required for non-cumulative deposit schemes is ₹ 10000 and thereby in multiples of ₹ 1000. Cumulative deposits on the other hand have a minimum deposit amount requirement of ₹ 5000 and thereby in multiples of ₹ 1000.
What is the maximum acceptable amount for opening a fixed deposit scheme Shriram Transport Finance Company?
There is no set limit on the maximum deposit amount that a depositor can deposit and it depends on sole discretion of the bank.
What is the minimum and maximum deposit period that Shriram Transport Finance Company offers?
The deposit period offered by Shriram Transport Finance Company are in the range of 12 months to 60 months.
What is the process of opening a fixed deposit account with Shriram Transport Finance Company?
A customer needs to visit the nearest Shriram Transport Finance Company branch with a duly filled application form along with the required KYC documents and cheque or demand draft of the amount to be deposited.
What are the rates of interest offered by Shriram Transport Finance Company on its fixed deposit schemes?
Cumulative and non-cumulative deposits fetch different interest rates. In non-cumulative category too, the rates differ with monthly, quarterly, half-yearly and yearly interest pay outs. Interest rates range from 8.8% to 9.25% (up to 10.25% on non-cumulative deposits).
Does Shriram Transport Finance Company offer fixed deposits that save tax?
Yes. Fixed Deposits which have a deposit period of 5 years or more are subject to an income tax rebate under section 80C of the Income Tax Act.
Are fixed deposit schemes from Shriram Transport Finance Company, taxable?
Yes. Fixed deposits from Shriram Transport Finance Company are taxable and are split up into two categories. First is those deposits for which the account holder has furnished his/her PAN number while the other is for which the PAN number has not been furnished.
In case the interest on the FD is equal to or more than ₹ 5000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than ₹ 5000 and the PAN number has not been provided then a tax of 20% on the interest received is levied.
What are some of the key features of Shriram Transport Finance Company?
Here are a few important features of deposits by Shriram Transport Finance Company:
- Choice of renewal of deposit on maturity
- Attractive interest rates
- Pre-closure facility is available as per bank guidelines
- Differential, higher rates for senior citizens
Can a loan be availed against a fixed deposit of Shriram Transport Finance Company?
No. Currently there does not seem to be any provision for availing loans against Shriram Transport Finance Company fixed deposits.
Does Shriram Transport Finance Company offer special rates of interest on fixed deposits availed by senior citizens?
Yes. Senior citizens can avail 0.25% more, over and above the regular fixed deposit rates.
Can a credit card be availed against my fixed deposit with Shriram Transport Finance Company?
No. Currently, Shriram Transport Finance Company does not have any credit card related scheme which can be offered to its customers.
Does Shriram Transport Finance Company offer NRI fixed deposits?
Does Shriram Transport Finance Company allow premature withdrawals on FDs?
If Shriram Transport Finance Company allows a deposit to be prematurely withdrawn, the deposit receipt should be discharged by all the depositors in case of A or S/s (Anyone or Survivor) deposit and by the first depositor in case of N or S/s (Number One or Survivor) deposit. If a deposit is withdrawn before three months from the date of deposit renewal, there is no repayment clause. Also, if the deposit is withdrawn after three months but before six months, no interest is charged. If the deposit is withdrawn after six months but before the date of maturity, the interest charged will be 2 percent lower than the rate applicable for the duration for which the deposit has been held with Shriram Transport Finance Company (If the rate for the period is not specified, interest payable will be 3 percent lower than the minimum rate at which deposits are approved by the company).