Shriram Transport Finance Company Limited, incorporated in the year 1979 is RBI authorized non-banking financial company (NBFC) licensed to take fixed deposits which has significant presence in financial services viz. Commercial vehicle finance, Consumer Finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds. Shriram Transport is one of the oldest and highly trusted companies in the country. They are one of the largest players of Fixed Deposit, commercial vehicle financing & other financing products through a pan-India network comprising 1,854 branches, 775 rural centers and partnerships with ~500 private financiers.

Fixed deposit is the most secured saving option that lets you grow your money with assured returns. These assured return enables you to invest for a better and secured future by offering guaranteed high returns along with safety of principal amount. With a high interest rate and monthly accumulation of returns on deposit, it becomes easy for you to accumulate your savings and plan a financially secured future. With investment tenure ranging from 12 months to 60 months, Shriram Transport Finance Limited’s term deposit comes with AA+ Stable Outlook rating by ICRA & FAAA rating by CRISIL.

What are the schemes available for deposits?

Cumulative as well as Non-Cumulative schemes are available for deposits.

What is the difference between a Non-Cumulative deposit and a cumulative deposit?

In a 'Non- Cumulative scheme' the interest is payable on a periodic basis. In 'Cumulative deposit scheme', the interest is payable at the time of maturity along with the principal.

What is the minimum deposit amount for Cumulative deposit & Non-cumulative deposit schemes?

Deposit will be accepted in multiples of ₹ 1,000 subject to a minimum amount of ₹ 5,000 for cumulative deposit and ₹ 5,000 for non-cumulative deposit.

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

We have Monthly/Quarterly/Half Yearly and Yearly option for payment of interest. The interest is directly credited to the bank account via NEFT (National Electronic Fund Transfer)

When will the interest be credited in Non-cumulative scheme?

In a Non-cumulative scheme, the interest will be credited on the Last day of every month in case of Monthly, Last day of March/June/September and December in case of Quarterly, Last day of March and September in case of Half-Yearly and Last day of March in case of Yearly. The first interest will be paid on the last day of the subsequent month in which the FD is processed, E.g. If the customer has initiated the FD on 20th, March and has requested for a monthly interest, the same will be paid on the subsequent month-end that is 30th April.

What is the range of tenure available for fixed deposits?

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

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

The public fixed 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.

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

Yes. You can make a deposit in the name of minor provided such minor is represented by his natural or legal guardian and the Application Form for the 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.

Can investments be made in joint names?

Yes, Maximum of three people can maintain a joint Fixed Deposit which would be payable to "Anyone or Survivor" or "First or Survivor/s". In the case of "Anyone or Survivor", on maturity, the deposit receipt can be discharged by anyone of the depositors. However, for a premature payment and loan all the depositor's signatures are required. If the depositor is minor, only natural or legal guardian can be the joint holder.

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

There will be absolutely no changes for the existing 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 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?

A. If the estimated annual interest paid/credited or likely to be credited/paid on the deposit/s exceeds or is likely to exceed ₹5,000 during the financial year (i.e. year 2020-21), 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.

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 can also be downloaded from the company website https://www.stfc.in/deposit/downloads/ 15G (For Depositors below 60 years of age) / 15H (For Depositors whose age is 60 years and above).

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

A. Declaration in the Form 15G can be made by an individual or a person (not being a company or firm). Hence, a company or Firm cannot submit declaration in the Form 15G or in the Form 15H. Form 15G is meant for Resident Individual who is below 60 years of age. 15H is meant for 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 2020-21) 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 2020-21) does not exceed the basic exemption limit as per the income tax, i.e. ₹250,000.

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.

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

No, all deposits held in the same name and same PAN, are required to be clubbed together for the purpose of calculation of income tax.

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

A. According to the Direction of the RBI, a deposit receipt cannot be prematurely closed before three months from the date of Deposit/ renewal except in case of death of depositor.

What is the process of taking premature withdrawal?

The premature withdrawal of any FD is allowed at the sole discretion of the company. For seeking prematurity withdrawal original deposit receipt duly discharged on ₹1 revenue stamp along with a request letter for prematurity withdrawal and a cancelled cheque leaf should be submitted.

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

No. Premature payments will be made to the first depositor only.

Will the deposit be paid back in cash?

No. Deposit will be paid back only to the corresponding bank account updated in the records of Shriram

How is the FD renewed?

Subject to the FD scheme being open, the deposit may be renewed on maturity 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 FD receipt with revenue stamp of requisite value. The renewal will be subject to the terms and conditions of the FD scheme as applicable on the maturity date of the old deposit.

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

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

Do you accept NRI deposits?

No, Fixed Deposits from NRIs are discontinued with effect from 2nd January, 2017.