Shriram Transport Finance Company (STFC) and Shriram City Union Finance Ltd (Shriram City) are supplying one of the highest interest prices on their fixed deposit accounts. The highest interest price getting supplied by each STFC and Sriram City is 7.75 per cent per annum on non-cumulative deposits of 60 months (5 years). On cumulative deposit, the efficient yield per annum on offer you 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 portion of the Shriram Group. In July 2021, SFTC and Shriram City raised retail FDs worth Rs 2,000 Crore. The NBFCs are supplying desirable interest prices and boasts of a substantial consumer base of 6.4 million buyers.
In a statement today, Shriram Group mentioned that Shriram City raised retail FDs worth Rs 390 crore when STFC raised Rs 1,610 crore in July 2021. These are the highest ever funds raised from retail FDs for each entities. In Q1FY22, Shriram City witnessed Retail FD development of 33% to Rs 5,761 crore, when STFC saw a development of 49 per cent to Rs 17,903 crore.
Shriram City has a consumer base of 4.3 million buyers spread across 926 branches. STFC has a consumer based of 2.1 million buyers.
STFC, Shriram City Fixed Deposit prices
Interestingly, the highest interest price getting supplied by STFC and Shriram City is more than the interest prices getting supplied by the Government of different tiny savings schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and Kisan Vikas Patra (KVP).
While the PPF is at present supplying 7.1% interest price, SSY, KVP and NSC are at present giving 7.6%, 7.1% and 6.9% interest prices respectively. However, all these tiny savings schemes offer you various other positive aspects that may well be more valuable for investors.
Commenting on the record FDs in July 2021, Y.S. Chakravarti, MD & CEO, Shriram City mentioned 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 mentioned: “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.”