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Fixed Deposit up to 9.05% p.a.* Interest rates. Invest Now

 

01-01-2023 00:13:59

Recurring Deposit up to 8.50% p.a.* Interest rates. Invest Now

 

14-11-2022 14:09:00

Two Entities - One Shared Vision - STFC and SCUF are now merged as Shriram Finance

14-11-2022 14:08:45

FAQs

Can a power of the Attorney (POA) holder sign the recurring deposit application form?

  • Power Of Attorney (POA) holder can sign the recurring deposit application form.

Can investments be made in joint names?

  • Recurring deposits may be made in Joint Names of two/three person under “First or Survivor/s” or “Anyone or Survivor” . All Communications will be addressed to First depositor. All Interest payments and repayment of deposits will be made in the name of First depositor.

How do I change my correspondence address?

  • You need to send valid Address proof along with Address/Contact Change Request Letter in prescribed format [RD Application Form to download Address/Contact Change Request Letter] to FD processing centre. On the receipt of the details, the changes will be updated in our records within 7 working days.

How do I change my Bank Account details for maturity payment & NACH Auto debit?

  • Depositors would need to submit the bank details in prescribed format [RD Application Form to download Bank Details/Tax Status change Request Letter]. He also needs to submit a valid ID proof copy along with a personalized cancelled cheque (with his name printed), if not personalized, then bank statement of the same account is needed.

Can a Trust/Company/Partnership Firms/Unincorporated Associations/Body of Individuals invest in RD?

  • No.

What happens if the prevalent interest rates come down or goes up?

  • There will be absolutely no changes for the existing recurring deposits as we are obliged to pay the contracted rate till its maturity as per the current rules.

    The revised rates will apply only to fresh recurring deposits and renewals made on or after the date from which the new rates are applicable.

When is Income Tax deducted at source from interest?

  • If the estimated annual interest paid/credited or likely to be credited/paid on the deposit/s (Fixed deposits and recurring deposits together) exceeds or is likely to exceed Rs. 5,000 /- during the financial year (i.e. year 2022-23), it is obligatory on the part of the deductor of tax to deduct income tax at source. However, to avoid such deduction of Tax, the investors can furnish self-declaration in Form 15G/H or by submitting the Exemption certificate from the respective Income Tax Authority for every financial year before beginning of that financial year.

What is Form 15G and Form 15H and where do I get it from?

  • Form 15G/15H is a self declaration by the depositor which can be obtained from the company or to download [15G (For Depositors below 60 years of age). / 15H (For Depositors whose age is 60 years and above] It is a self declaration which needs no attestation by anybody except in the case of Left Hand Thumb impression which needs to be attested by a Gazetted Officer/Bank Official. It should be furnished in Duplicate Click here to dowloadForm 15G/15H

What is the difference between Form 15G and the Form 15H?

  • Declaration in the Form 15G can be made by an individual or a person (not being a company or firm).. Form 15G is meant for Resident Individual who is below 60 years of age. 15H is meant for Senior Citizens/super senior citizens i.e. Resident Individual who is of 60 years of age or more at the time of placing the deposit.

     

    • Form 15G:
    • Eligibility for 15G in case of individuals:-

    The Individual should be less than 60 years of age at the time of furnishing the declaration. The total income during the financial year (i.e. year 2022-23) should not exceed the basic exemption limit as per income tax i.e. 250,000/-. If the total income during the financial year exceeds or is likely to exceed 250,000/- then the individual cannot submit Form 15G.

     

    • Eligibility for 15G if in case of persons other than Individuals:-

    15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons, if the total income during the financial year (i.e. year 2022-23) does not exceed the basic exemption limit as per the income tax i.e. 250,000/-.

Is it not enough to furnish the Form only once at the time of placing the deposit?

  • No. Since there may be changes in the Income Tax Laws, the Form 15G/H is required at the beginning of each financial year or at the time of deposit (Fixed deposit & Recurring deposit), wherever applicable.

What type of certificate do you get for the Tax deducted at source and how is the certificate generated?

  • TDS certificate is issued in consolidated form for both recurring deposit and fixed deposit. For the tax deducted at source, Tax deduction certificates in the prescribed Form 16A giving details of the tax remitted to the Govt. etc. will be sent on quarterly basis if the deposit is under quarterly scheme, half -yearly basis for deposit under half yearly scheme and at the end of the year in case of Yearly scheme and cumulative deposits.

    TDS certificate in Form 16A are generated quarterly on the basis of details provided in the quarterly TDS statement filed by the deductor of Tax in TIN (Tax Information Network). For deduction of tax at source, TDS certificate in Form 16A will be generated by the company through TIN central system and which is downloaded from TIN website with a unique TDS certificate number and shall be authenticated by using the digital signature.

When will the TDS certificate be dispatched?

  • TDS certificate will be dispatched on:

    • 01-Last week of July
    • 02-Last week of October
    • 03-Last week of January
    • 04- Last week of May

     

Can there be more than one customer folio for one depositor?

  • All deposits (fixed deposit & recurring deposit) held in the same name and same PAN, will be clubbed together under one customer folio for the purpose of calculation of income tax.

In case there is an urgent need of money, is premature withdrawal of recurring deposit receipt allowed?

  • According to the Direction of the RBI, a recurring deposit receipt cannot be prematurely closed before three months from the date of Deposit/ renewal except in case of death of the depositor. Premature withdrawal can be made after 3 months from the date of deposit.

      The prematurity payment norms are as under:
    • After 3 months but before 6 months - No interest*
    • After 6 months but before the date of maturity - The interest payable shall be 2% lower than the interest rate applicable to a public deposit for the period for which the public recurring deposit has run or if no rate has been specified for that period, than 3% lower than the minimum rate at which public deposits are accepted by the company*

    *The above rates are also applicable for premature repayment in the case of death of a depositor.

Can prematurity payment be paid favoring the second/third Depositor?

  • Premature payments will be made to the first depositor only.

If the sole depositor dies, what are the documents required?

  • An attested copy of Death certificate, Will or testamentary disposition, if any, or an attested copy of Legal Heirship Certificate issued by a Tahsildar /corporations.

Do you accept NRI Recurring Deposits?

  • Recurring Deposits from NRI’s are not accepted.

Can I apply online?

Do Senior citizens get any extra benefit on Recurring Deposits?

  • No, currently we do not provide any extra benefit for senior citizens.

What is a maturity date?

  • A maturity date is when all funds due are paid towards your nominated account.

What are the minimum and maximum investment tenure in an RD with Shriram Finance?

  • While the minimum tenure of a recurring deposit is 12 months, the maximum term is up to 60 months.

What are the instalment frequencies available and modes by which the instalment is paid?

  • We have a monthly payment of instalment option, which will be auto-debited from the depositor's bank account mentioned on the application during investment.

How can premature withdrawal be done and what are charges applicable?

  • The company reserves the right to allow, at its absolute discretion, withdrawal of recurring deposit before maturity. Where a recurring deposit is allowed to be prematurely withdrawn the relative recurring deposit receipt must be discharged by all the depositors in case of A or S/s deposit and by the first named depositor in case of F or S/s deposit. As per the Directions of RBI currently in force, premature repayment:

    Up to 3 months from the date of recurring deposit (Lock-in-period) - No Repayment (Not applicable in case of premature repayment in the event of death of the depositor**)

    After 3 months but before 6 months - No interest*

    After 6 months but before the date of maturity - The interest payable shall be 2% lower than the interest rate applicable to a public deposit for the period for which the public recurring deposit has run or if no rate has been specified for that period, than 3% lower than the minimum rate at which public deposits are accepted by the company*

    ** In the event of death of a depositor, the Company shall repay the recurring deposit prematurely, even within the lock-in period, to the surviving depositor/s in the case of joint holding with survivor clause, or to the nominee or the legal heir/s of the deceased depositor, on the request of the surviving depositor/s/nominee/legal heir, and only against submission of proof of death, and other necessary documents to the satisfaction of the Company.

    * The above rates are also applicable for premature repayment in the case of death of a depositor.

    Premature repayments will be made only in favor of the first depositor.

Can I convert my Recurring Deposit into a Fixed Deposit?

  • Under Conversion to Fixed Deposit, based on the instructions opted under conversion to Fixed Deposit in maturity instruction on Recurring Deposit application:

    1) The deposit will continue to be auto renewed as per the instructions specified on the application form (Under maturity instruction) till such time instructions contrary are received.

    2) The company will generate Fixed Deposit E-Receipt to the registered email id of the first applicant on conversion.

    Based on the option selected by the depositor, the Recurring deposit receipt will be renewed on due date for full amount (net of TDS, if any)

How do I calculate the interest on my Recurring Deposit?

  • With our RD interest calculator, you can calculate your returns in no time. All you need to know is:  
    • Investment Amount - The amount you wish to invest
    • Tenure Upto - The timeframe or tenure that you want to invest
    As soon as you pick the above items, the RD calculator displays the interest rates applicable. Get hands-on with our easy-to-use online RD calculator and calculate your returns.

Is a minor person eligible to make a Recurring Deposit?

  • Yes, a minor can make a recurring deposit in their name, provided the parent or guardian represents the minor. The application form for the recurring deposit should be signed by the parent/guardian on behalf of the child.

What are the documents required for Resident Individuals?

    • Permanent Account Number or Form No. 60 as defined in Income-tax Rules, 1962 (Please refer point 9(b)).
    • Photograph needs to be submitted at the time of placing of fresh deposit/renewal, if not submitted earlier.
    • Copy of any OVD (Officially Valid Document) containing details of his identity and address
    • List of OVD documents:

      a) Passport

      b) Driving License

      c) Voter ID

      d) Job card issued by NREGA duly signed by an officer of the State Government

      e) Aadhaar Card.

      f) Letter issued by the National Population Register containing details of name and address.

    Where the OVD mentioned above does not have updated address, the following additional documents can be submitted for the limited purpose of proof of address (The Depositor shall submit OVD with current address within a period of :

    1. Pension payment orders

    2. Property or Municipal Tax receipt

    3. Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies.

    4. Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India.

    5. Latest Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill).

What are the documents required for Partnership Firm?

  • a) Registration certificate

    b) Partnership deed

    c) Permanent Account Number of the partnership firm.

    d) Proof of identity and address (as per KYC documents mentioned for individuals) of the authorised signatories.

What are the documents required for HUF?

  • a) HUF PAN card

    b) HUF Declaration

    c) Proof of ldentity and Address (As per KYC documents mentioned for Individual) of the Karta.

What are the documents required for Trust & Foundations?

  • a) Registration certificate

    b) Trust deed

    c) Permanent Account Number.

    d) Proof of identity and address (as per KYC mentioned for individuals) of the authorised signatory of the trust/institution signing the application.

     

What are the documents required for Unincorporated Association or Body of Individuals?

  • a) Resolution of the managing body of such Association or Body of Individuals. 

    b) Power of attorney granted to him to transact on its behalf. 

    c) Permanent Account Number 

    d) Proof of identity and address (as per KYC documents mentioned for individuals) of the person who is holding the power of attorney to transact the business on behalf of the Unincorporated association or Body of Individuals. 

    e) Such information as may be required to collectively establish the legal existence of such an association or Body of Individuals. 

What are the documents required for Juridical persons (societies, universities and local bodies like village panchayats)?

  • a) Document showing the name of the person authorised to act on behalf of the entity; 

    b) Proof of identity and address (as per KYC documents mentioned for individuals) of the person who is holding the power of attorney to transact on its behalf and. 

    c) Permanent Account Number 

    d) Such information as may be required to collectively establish the legal existence of such an entity/juridical person. 

What are the documents required for NRI?

  • 1.PAN Copy 

    2. NRI undertaking cum FATCA/CRS Form 

    3. Address Proof (of India) 

    4. Address Proof (of Overseas) 

    5. PIO Card (if it is a foreign passport) 

    6. Tax Residency Certificate (TRC) for the IT Dept. of the country of which the investor is resident to 

    avail DTAA benefit. 

    7.Overseas Employment letter (Optional for confirmation of residential status and overseas address) 

    8. Passport with valid Visa Page 

    9. DTAA declaration 

What is the process of taking premature withdrawal?

  • The premature withdrawal of any RD is allowed at the company's sole discretion. For seeking premature withdrawal, a request letter for prematurity withdrawal / an email from the registered email id should be submitted, based on which the amount will be credited to the bank account registered with us.

What is a nomination?

  • Nomination is a process where the depositor assigns a person to whom the company must pay the deposit amount in the event of the depositor's death. A depositor can fill in nomination details when booking an RD. Even if nomination is there, nominee will get the amount only if joint holder does not exit / not expired.

Will the deposit be paid back in cash?

  • The deposit will be transferred only to the corresponding bank account updated in the records of Shriram Finance.

Can an NRI invest in a Recurring Deposit?

  • No, NRIs cannot invest in recurring deposit

What is the minimum deposit amount for RD scheme?

  • Recurring deposit will be accepted in multiples of ₹ 500/- subject to a minimum amount of ₹ 500/- per installment

What are the installment frequencies available and modes by which the installment is paid?

  • We have Monthly – option for payment of installment, which will be auto debited from the depositor’s bank account mentioned on the application during investment

When will the interest be credited in RD scheme?

  • Interest will be computed on each installment amount from the respective deposit date until March 31st. Interest for the subsequent year/s would be computed on the accumulated balance (principal and interest [net of TDS, if any]) as of March 31st until the next March 31st or maturity date whichever is earlier. Interest [net of TDS, if any] will be credited to the depositor ledger on 31st March of each year.

What is the range of tenure available for Recurring Deposits?

  • You can open a recurring deposit with the Company for a minimum tenure of 12 months to maximum tenure of 60 months.

How do I tender the amount for the recurring deposit? Is there a prescribed form for making deposit?

  • The amount can be tendered by means of A/c payee Cheque/DD issued in favor of SHRIRAM FINANCE LIMITED. An application for the deposit should be made on the prescribed form RD Application Form to download.

Under what regulations, the recurring deposits accepted by NBFCs are governed?

  • The recurring deposit schemes of NBFCs are subject to the directions issued by the Reserve Bank of India under Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016.

Who can invest in recurring deposits with Shriram Finance Limited?

  • We accept investments from Individuals, and Hindu Undivided Family (HUF)

Can a recurring deposit be made in the name of minor alone?

  • Yes. You can make a recurring deposit in the name of minor, provided such minor is represented by his natural or legal guardian and the Application Form for the recurring deposit is signed by the natural/Legal Guardian, on behalf of the minor. All communication in relation to the deposit shall be addressed to the guardian.

What will be the address printed on the TDS Certificates?

  • The address printed on the TDS certificate will be the address registered with Income Tax Department at the time when you had made an application for PAN. If your current communication address is different from the address given for PAN card application then please change the address through NSDL or UTIITSL.

What is the significance of furnishing Permanent Account Number?

  • As per the provisions of income tax, every person receiving any sum or income from which tax would be deducted should furnish his PAN to the person deducting the tax. Please note if PAN is not furnished then form 15G/H or any other Exemption Certificate submitted will be invalid and tax will be deducted at the higher rate as applicable.

    In the absence of PAN, no credit of the tax deducted shall be available in Form 26AS on the NSDL website. Also if PAN is not submitted, no TDS certificate will be generated from TIN website for the tax deducted by the company.

Can you send the payments directly to the depositor's bank?

  • Yes. The payment can be sent directly to the depositor’s bank.

How is the RD renewed?

  • The recurring deposit on maturity can be converted to fixed deposit by submitting a duly filled fresh FD Application Form. It is necessary that the fresh FD Application Form should be submitted along with the duly discharged old RD account statement. The renewal will be subject to the terms and conditions of the FD scheme as applicable on the maturity date of the recurring deposit.

Is RD transferable?

  • RD is non-transferable.

Will you allow loan on deposit? What is the rate of interest chargeable for loans?

  • There will not be any loan on RD

What if one loses the RD Receipt / Interest warrant?

  • No physical certificate is issued for RD. Hence the loss of RD receipt does not arise. Also no interest warrant is being issued.

If legal disputes arise, what is the resolution mechanism?

  • Disputes, if any, arising in connection with Shriram Finance Limited RDs, will be subject to jurisdiction of Court at city of Chennai.

Are recurring deposits guaranteed by RBI?

  • No. Though the recurring deposits of the Company are within its regulatory framework, RBI does not undertake any responsibility for the repayment of deposits/discharge of liabilities by the company. The depositor is advised to satisfy himself about the financial position and all relevant aspects before placing his deposit.

Is there an auto renew/auto refund option and how can it be done?

  • The Company offers Auto Refund & Conversion to Fixed deposit options.

    While applying for a Recurring deposit, depositor can opt for either Auto Refund or Conversion to Fixed Deposit.


    Auto Refund

    If Auto Refund is opted then the maturity proceeds will be credited to the depositors account on the date of maturity. Repayment of recurring deposit falling due on a Sunday or a bank holiday or any day when the company’s head office is not working due to holiday or otherwise will be made on the next working day.

What happens if the overall interest rates change?

  • There will be no changes for the existing recurring deposit as we are obliged to pay the contracted rate until its maturity as per the current rules. The revised rates will apply only to fresh recurring deposits and renewals made on or after the date from which the new rates are applicable.

What is TDS? Why do I require it?

  • Under the Indian Income Tax Act, 1961, interest earned on the recurring deposit is taxable only if it is above ₹ 5000. You may avoid the deduction in the following circumstances:

    - By submitting form 15G if you are under 60 years.
    - By submitting form 15H if you are over 60 years (senior citizen).

When will the interest be credited in the RD scheme?

  • Interest will be computed on each instalment amount from the respective deposit date until March 31st. Interest for the subsequent year(s) would be computed on the accumulated balance (principal and interest [net of TDS, if any) as of March 31st until the following March 31st or maturity date, whichever is earlier. Interest [net of TDS, if any, will be credited to the depositor ledger on March 31st of each year.

Is there a fee to open a Recurring Deposit?

  • No fees are associated with opening or maintaining a recurring deposit.

Maximise savings with a Recurring Deposit