Shriram Unnati Fixed Deposit is offered by Shriram Finance Limited (SFL), a prominent non-banking financial company (NBFC) in India. The scheme is a compelling investment option for individuals seeking stable and attractive fixed returns. This scheme is particularly noteworthy for its competitive interest rates and investor-friendly features.
For investors looking to grow their savings securely, fixed deposits (FDs) have long been a favored choice, so, in this article, we’ll delve into the specifics of this FD scheme, provide a thorough review, and share user opinions to help you make an informed investment decision.
About Shriram Finance Limited
Shriram Finance Limited (SFL) is a leading NBFC in India and a part of the Shriram group which has a significant presence in Consumer Finance, Life Insurance, General Insurance, Stock Broking, and Distribution businesses. Established in 1979, the company has over four decades of experience. SFL has carved a niche in providing financial services, especially in the commercial vehicle financing sector.
The company boasts a vast network of branches across the country, catering to a diverse clientele. Its commitment to serving the underserved segments has earned it a reputable position in the financial market. Shriram Finance Limited is one of India’s largest retail asset financing NBFC, with Assets under Management (AUM) above Rs. 2.54 trillion.
The company has a vertically integrated business model and offers financing number of products which include passenger commercial vehicles, loans to micro and small and medium enterprises (MSMEs), tractors & farm equipment, gold, personal loans, and working capital loans, etc. Over the last 45 years, it has developed strong competencies in the areas of loan origination, valuation of pre-owned commercial vehicles and other assets, and collections. It has a pan-India presence with a network of 3,196 branches and an employee strength of 79,405 servicing 94.36 lakhs of customers.
Understanding Fixed Deposits
- Offers one of the highest interest rates among well known and highly rated NBFCs. e.g., A woman senior citizen renewing her FD can earn up to 9.42% per annum.
- Flexible maturity tenure on offer from 12 to 60 months.
- No need to break FD prematurely at a loss, instead users can take a loan against FD for better liquidity management
- Less digital operation compared to some leading banks.
Unnati is a fixed deposit product offered by India's largest NBFC Shriram Finance, it offers higher returns, flexible tenure and an option to take a loan against FD for better liquidity.
Fixed Deposits are investment instruments where individuals deposit a lump sum amount with a financial institution for a predetermined period at a fixed interest rate. The primary benefits include capital safety, predictable returns, and flexibility in tenure. FDs are ideal for conservative investors seeking stable growth without exposure to market volatility.
Features of Shriram Unnati Fixed Deposit
The Shriram Unnati Fixed Deposit scheme offers a blend of attractive interest rates and flexible terms. Key features include:
Interest Rates and Tenure Options: Investors can choose tenures ranging from 12 to 60 months, with interest rates varying based on the selected tenure. As of the latest data, the maximum interest rate offered is 8.50% for the general public, with additional benefits for specific categories like women and senior citizens.
Eligibility Criteria: The scheme is offered to individuals, companies, Hindu Undivided Families (HUFs), partnership firms, and trusts.
Application Process: Investors can apply online through the Shriram Finance website or mobile app by providing the necessary details, completing KYC, and making the payment. Alternatively, one can visit a nearby branch for in-person assistance.
Features of Shriram Unnati Fixed Deposit
- High Interest Rates: Shriram FD offers interest rates up to 9.40%* p.a. (inclusive of 0.50%* p.a. for senior citizens and 0.10%* p.a. for women depositors). Shriram Unnati Fixed Deposit offers competitive interest rates, with special benefits for certain investor categories:
- General Public: Up to 8.50% per annum.
- Women Depositors: An additional 0.10% per annum, making it 8.61%.
- Senior Citizens: An extra 0.50% per annum, totaling 9.04%.
- Renewals: Existing depositors renewing their FDs receive an additional 0.25% per annum. For example, a woman senior citizen renewing her FD can earn up to 9.42% per annum.
- High Credit Ratings: Shriram Unnati Fixed Deposit has a credit rating of “[ICRA]AA+ (Stable)” and “IND AA+/Stable” by India Ratings and Research, establishing itself as a reliable investment option.
- Predictable Returns: Investing in Shriram Fixed Deposit provides stable returns, contrasting with the volatility often seen in market-related investments.
- Flexible Investment Terms: FD from Shriram Finance offers a variety of investment tenures ranging from 12 to 60 months, catering to both short-term and long-term financial objectives.
- Diverse Interest Payout Terms: Provides various interest payout options including monthly, quarterly, half-yearly, yearly, and on maturity, facilitating regular income for investors such as retirees.
Comparison with Other Fixed Deposits
When compared to other NBFCs and banks, Shriram Unnati FD stands out due to its higher interest rates and additional benefits for women and senior citizens. Apart from that, investors can choose from various tenures ranging from 12 to 60 months, aligning with their financial goals.
Tax Implications
Interest earned on Shriram Unnati Fixed Deposits is subject to Tax Deducted at Source (TDS) as per prevailing income tax laws. Investors should plan their investments considering their tax slab and explore options like submitting Form 15G/H to avoid TDS if applicable.
Premature Withdrawal and Loan Facilities
Shriram Finance allows premature withdrawal of fixed deposits, subject to certain terms and conditions, including a penalty on the interest rate. Additionally, investors can avail loans against their FDs, providing liquidity without breaking the deposit.
Conclusion
Shriram Finance Unnati fixed deposit is a good option for conservative risk investors as it is a very safe option offering comparatively higher returns to other traditional FDs. Investors should plan well for diversification, liquidity, and risk-taking capacity before making any investment decision.
