JusPaisa - Shriram Finance - FAQ

What is Shriram Finance?
Shriram Finance Limited (SFL) is RBI-authorized and as a long-standing reputation as a trusted and reliable non-banking financial company (NBFC) in India. The company was founded in 1979. SFL's fixed deposit product is a type of investment product where customers can deposit a fixed amount of money for a fixed period of time. SFL primarily uses the fixed deposits it has collected from its customers to fund its lending activities. When customers deposit money in SFL's fixed deposit schemes, the company uses these funds to provide loans to borrowers who need financing to purchase commercial vehicles.

Isn’t the provision of fixed deposit schemes limited only to banks in India?
No, the provision of fixed deposit schemes is not limited only to banks in India. Non-banking financial companies (NBFCs) are also authorized by the Reserve Bank of India (RBI) to accept fixed deposits from customers. Shriram Transport Finance Limited’s fixed deposits are regulated by the Reserve Bank of India (RBI) and are rated by credit rating agencies, ensuring transparency and reliability for customers. These deposits are called Corporate FDs.

Why should I choose corporate FDs over bank fixed deposits?

Corporate deposits can offer higher interest rates compared to fixed deposits offered by banks. Additionally, corporate deposits can diversify one's investment portfolio by offering exposure to non-banking sectors such as real estate, manufacturing, and infrastructure. 

What is the minimum and maximum tenure in an FD with Shriram Finance?

The minimum tenure in FD with Shriram Finance is 12 months and the maximum tenure is 60 months.

Does Shriram Finance allow pre-mature withdrawal and what are the charges applicable?

Yes, Shriram Finance permits premature withdrawal on fixed deposits. There is a 3-month lock-in period. Note that no interest is payable on the deposit if Fixed Deposit is closed prematurely after 3 months but before 6 months from the date of the Fixed Deposit booking. If it is prematurely closed after 6 months of the Fixed Deposit booking but before the maturity period then the interest payable shall be 2% lower than the interest rate applicable to a deposit for the period for which the deposit has run.