Sundaram Home Finance increases interest rates on deposits

CHENNAI

Sundaram Home Finance Ltd. (SHFL) has increased interest rates on deposits effective Tuesday. The company will pay 8% per annum (7.5%) on five-year deposits by senior citizens and Trusts. On three-and-four-year deposits, the rates have been increased to 7.65% (7.15%) and 7.9% (7.5%) respectively, SHFL said in a statement.

On one-year deposits, SHFL will pay 7% per annum (6.5%) for senior citizens and 6.65% (6%) for Trusts, while on two-year deposits, the company will pay 7.35% (6.8%) for senior citizens and 7% (6.30%) for Trusts.

For individuals other than senior citizens, the interest rates have been increased to 6.65% (6%), 7% (6.30%), 7.30% (6.65%) 7.55% (7%) and 7.65% (7%) on one-to-five-year deposits, respectively.

“With this third upward revision, the rates have gone up this financial year by nearly 2% on 3 year plus deposits,” said MD Lakshminarayanan Duraiswamy.

According to him, the earlier two upward revisions (June and July) evoked positive response from depositors and SHFL had mobilised fresh deposits of ₹183 crore during the first half of the year.

As of September 2022, the deposit base stood at ₹1,950 crore, comprising about 15% of the company’s fund-raising basket.