• Sundaram Finance Fixed Deposit

    The Sundaram Finance Group was started in the year 1954 under the leadership of Shri T.S. Santhanam. At a time when no financier was ready to fund small truck operators, Sundaram Finance Group emerged to become a leading financier of the road transport industry. Today, it is the leading automotive financier in the country with a dedicated team of service oriented personnel.

    Already at the top of the game in hire-purchase, Sundaram Finance Group offers a range of financial services covering commercial vehicle finance, car finance, tractor finance, construction equipment finance, tyre finance and fleet cards. The company also has a successful presence in general insurance, mutual funds, housing finance, business process outsourcing, information technology services and – most importantly for the purposes of this article – fixed and cumulative deposits.

    Fixed Deposits from Sundaram Finance Group

    The deposit schemes offered by Sundaram Finance have been rated MAAA by ICRA – which represents highest safety. The fixed deposits and cumulative fixed deposits on offer provide excellent returns at competitive rates of interest, which is paid out on a monthly or quarterly basis (upon maturity for cumulative deposits).

    With over 1.75 lakh depositors and total deposits aggregating over Rs.1,665.67 crore, Sundaram Finance Group stands ready at the cusp of the huge pool of potential investors with one of the largest bases of deposits among NBFCs in India. The renewal rate for these deposits is over 80%.

    Sundaram Finance Group also offers cumulative deposits where the interest is compounded on quarterly rests and is paid along with the principal amount at the time of maturity.

    Eligibility – who can open a fixed deposit or cumulative deposit account here?

    Fixed and cumulative deposit accounts can be opened by individuals, companies, partnership firms, registered trusts and foundations.

    What are the terms of deposit available for fixed deposits and cumulative deposits?

    Investors can take up fixed deposit and cumulative deposit schemes for a term of 12, 18, 24 or 36 months. Monthly interest payment option is available for all these terms in the case of fixed deposits.

    What is the minimum deposit amount?

    Minimum deposit for any account is Rs.10,000. Interest rates on existing deposits remain unchanged till maturity.

    What is the procedure to open a fixed deposit account with Sundaram Finance?

    You must approach a branch of the company and fill out an application form, or apply online and a representative will get in touch with you regarding the same. To open the account, you will require:

    For individuals – Fresh application form, account payee cheque/demand draft/pay order favouring Sundaram Finance Limited and a photo ID with address proof (like a valid passport, driver’s license, PAN card, etc.)

    For companies – Certificate of incorporation and memorandum and articles of association. A resolution from the board of directors to open the account and identification of those with authority to operate the account. Power of attorney granted to an individual to transact on its behalf. Copy of PAN allotment letter and telephone bill.

    For partnership firms – Registration certificate, partnership deed, power of attorney granted to an individual to transact on its behalf, documents identifying partners and power of attorney with addresses and telephone bill.

    For trusts and foundations – Certificate of registration, power of attorney granted to an individual to transact on its behalf, documents identifying trustees and power of attorney with addresses, resolution document and telephone bill.

    What are the interest rates for Sundaram Finance fixed deposits and cumulative deposits?

    For those under 60 years of age at the time of taking any deposit, the interest rates are: Fixed deposits – 8.93% (monthly) and 9% (quarterly) for all terms. Cumulative deposits – 9% (p.a. at quarterly rests) for all terms. The effective yield for cumulative deposits varies based on the term of deposit:

    • 12 months = 9.30% p.a.
    • 18 months = 9.53% p.a.
    • 24 months = 9.75% p.a.
    • 36 months = 10.20% p.a.

    How will the interest earned be credited?

    Interest payments will be credited by way of:

    • RBI Electronic Clearing Service / EFT / NEFT / NECS.
    • At par cheques.

    Are loans provided against fixed deposits from Sundaram Finance?

    The company can provide loans against deposits provided the deposit had run for a minimum period of 3 years, up to 75% of the deposit amount, carrying an interest of 2% above the contracted rate.

    Does Sundaram Finance offer special rates to senior citizens?

    For those who are 60 years of age or above at the time of taking the deposit, the interest rates are: Fixed deposits – 9.43% (monthly) and 9.50% (quarterly) for all terms. Cumulative deposits – 9.50% (p.a. at quarterly rests) for all terms. The effective yield for cumulative deposits varies based on the term of deposit:

    • 12 months = 9.80% p.a.
    • 18 months = 10.07% p.a.
    • 24 months = 10.35% p.a.
    • 36 months = 10.83% p.a.

    Does Sundaram Finance allow premature withdrawal?

    The company reserves the right to allow withdrawal of deposit before maturity. In this case, the relative deposit receipt must be discharged by all the depositors or the first named depositor (as the case may be). Before 3 months from the date of deposit/renewal – No repayment (can be paid without interest in case of death of depositor). Between 3 and 6 months – No interest. Between 6 months and the maturity date – interest payable at 2% less than the interest rate applicable. If no rate has been specified, interest is payable at 3% lower than the minimum rate at which deposits are accepted.

    Does Sundaram Finance allow for renewal?

    On maturity, you can opt for:

    • Pay-out of the maturity amount plus interest.
    • Renewal of maturity amount.
    • Renewal for a lower multiple of Rs.1,000 (subject to a minimum balance of Rs.10,000 in the depositor account).
    • Renewal for a higher multiple of Rs.1,000 by submitting a cheque for the differential amount.

    Does Sundaram Finance Group offer fixed deposits for NRIs?

    Yes, the company offers fixed deposits for NRIs on a non-repatriable basis. All payments can be made only in Indian rupees and through an NRO account, payable at Chennai. The principal and the interest will be deposited in the NRO account only and hence depositors must declare their NRO bank account number at the time of taking on the fixed deposit scheme. In case the NRI depositor is assessable to income tax in India, an exemption certificate stating the same must also be submitted to the company. No loans are allowed against NRI deposits.

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