Shriram Finance Ltd (SFL) has increased interest rates on digital-only recurring deposits (RDs) by 35-40 basis points even as it launched a special 15-month digital-only fixed deposit (FD).

The new interest rate on a digital-only RD or fixed investment plan (FIP) of 12 months - 23 months tenor is 8.50 per cent (8.10 per cent earlier); 24 months - 35 months (8.75 per cent vs 8,40 per cent earlier); and 36 months - 48 months (9 per cent vs 8.60 per cent). Digital-only means investment made via Shriram One App and SFL’s website.

Women depositors will get an additional interest rate of 0.10 per cent. The minimum deposit amount for the RD/FIP is Rs 1000 a month.

The non-banking finance company (NBFC) said it has made its RD/FIP scheme, which is currently marketed through digital and offline mode, exclusive to the Shriram One App and SFL website.

15-month digital-only FD

The interest rate on the 15-month digital-only ‘Unnati” FD is 8.15 per cent. The minimum deposit amount is ₹5000.

Senior citizens and women depositors can earn additional 0.50 per cent and 0.10 per cent, respectively, on this deposit, per a company statement. All depositors can claim an additional benefit of 0.25 per cent on renewal of the FDs, done digitally or through online channels, it added.

“Both the digital-only FD and the FIP (RD) scheme will be available on the Shriram One app and the Shriram Finance website from April 22, 2024. From that date onwards, customers would no longer be able to book FIPs physically at branches or through the company’s representatives,” the company said in a statement.

Umesh Revankar, Executive Vice Chairman, SFL said, “We firmly believe that India’s digital movement is maturing at the right pace. Young Investors are becoming increasingly digital-savvy and are keen to explore non-traditional means of investing in traditional products.”