Sundaram Home increases interest rates on deposits

Sundaram Home Finance has revised interest rates upwards on deposits effective from November 1.

“This is the third upward revision in recent months,” according to a statement.

The company will pay an interest rate of 8 per cent per annum (7.50 per cent earlier) on 5-year deposits by senior citizens and trusts. On 3- and 4-year deposits, the interest rate has been raised to 7.65 per cent p.a (7.15 per cent) and 7.90 per cent (7.50 per cent).

On one year deposit, the company will pay 7 per cent p.a (6.50 per cent) for senior citizens and 6.65 per cent p.a (6 per cent) for trusts, while on 2-year deposits, the company will pay 7.35 per cent p.a (6.80 per cent) for senior citizens and 7 per cent p.a (6.30 per cent) for trusts.

Individuals

For Individuals other than senior citizens, the interest rates have been revised upwards to 7.55 per cent p.a (7 per cent) and 7.65 per cent p.a (7 per cent) on 4 and 5 year deposits and to 6.65 per cent p.a (6 per cent), 7 per cent p.a (6.30 per cent) and 7.30 per cent p.a (6.65 per cent) on 1-,2-and 3-year deposits.

“The earlier two upward revisions that we effected in June and July received positive response from the depositors and we mobilised fresh deposits of ₹183 crore during the first half of the year. With this third upward revision, the rates have gone up this financial year by nearly 2 per cent on 3 year+ deposits,” Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said.

The deposit base stood at ₹1,950 crore as on September 30, 2022. Deposits constitute about 15 per cent of the company’s fund raising basket.

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