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In this article, we look at Fixed Deposit (FD) provided by Shriram Transport Finance Company. As we all know corporate fixed deposits are offered by both financial and non-financial companies. Likewise Shriram Transport Finance Company offers Fixed Deposit which gives higher interest rate than other bank fixed deposits.

Shriram Fixed Deposit scheme named ‘ShriramUnnati Fixed Deposits’ are rated “[ICRA] AA+ (stable)” by ICRA and rated “IND AA+/Stable by India Ratings and Research which indicates a high degree of safety.

Shriram Transport Finance is India’s largest asset-based Non-Banking Financial Company (NBFC), which has a proven track record for more than 40 years of timely and on track fixed deposit payment. Also it provides multiple financial services under one roof.

Features ofShriramUnnati Fixed Deposits Scheme:

• Cumulative and Non-Cumulative Deposit: In cumulative deposit the principal and interest amount are paid at the time of maturity and in Non-Cumulative it is paid monthly, quarterly, half-yearly and yearly intervals. It has tenure of 1year to 5 years and minimum deposit amount is Rs.5,000 and thereafter in multiples of Rs.1,000.
• This scheme offers Auto-refund facility, which means if person opts for this facility his amount will be credited directly in his bank account.
• Auto-Renewal Facility: If person opt for this facility, the principal can be auto renewed at the time of maturity.
• Pre-mature withdrawal facility: A person can withdraw the amount if he urgently needed before maturity but no interest is paid on pre mature withdrawal after 3 months but before 6 months from the date of booking fixed deposit.
• Higher returns: It offers higher returns up to 8.40% and 0.50% extra for senior citizens.
• Guaranteed Returns: This Fixed Deposit offer fixed and guaranteed returns.
• Loan facility: You can avail loan against your fixed deposit in times of need.
• Power of compounding: Means you earn interest on invested amount and also on the interest you get with the help of compounding.
• Regular income: By choosing monthly, quarterly, half-yearly and yearly interest payout you get regular earnings through interest payments.

Annual Rate of Interest:

Updated Rate of interest (27 July 2022).

Income tax element is slightly different under corporate fixed deposits. Understanding of tax on fixed deposit with Shriram Transport Finance:

• 10% tax deducted at source (TDS) on interest payments on income beyond Rs.5,000 in a financial year.
• If PAN is not submitted, then the TDS charged is @ 20%.
• If one’s annual income falls below the minimum income tax slab, he/she may submit form 15G/15H so that the company does not deduct TDS.

Eligibility to open Shriram Finance Fixed Deposit Account:

• Individuals
• Partnerships
• Companies
• Hindu Undivided family
• Trustee and Foundations
• Unincorporated associations
• Body of individuals
• NRIs