Last Updated:June 18, 2025, 12:11 IST
Shriram Finance Ltd has reduced FD interest rates by 40 bps effective June 26, with the highest rate now at 8%. Senior citizens and women depositors will get additional interest.
The rate cuts by banks and NBFCs come after the RBI in its last monetary policy review reduced the repo rate by an unexpected 50 bps to 5.5%.
Shriram Finance Ltd (SFL), a non-banking financial company (NBFC) part of the Shriram Group, on Wednesday said it has reduced interest rates on fixed deposits (FDs), effective June 26. With this, the highest FD interest rate stands at 8% on 36-month, 50-month, and 60-month tenures, compared with 8.4% earlier.
According to a statement, SFL has reduced interest rates by 40 basis points (bps) on most FD schemes, except on 12-month tenure where it cut 30 bps.
A basis point is a 100th of a percentage point.
Importantly, as the new interest rates start from June 26, investors can avail of the current higher rates till June 25.
SFL’s Revised Interest Rates On FD (Effective June 26, 2025):
| Tenure | Existing Rate (p.a.) | Revised Rate (p.a.) |
|---|---|---|
| 12 months | 7.65% | 7.35% |
| 15 months (Digital Only) | 7.90% | 7.50% |
| 18 months | 7.80% | 7.40% |
| 24 months | 7.90% | 7.50% |
| 36 months | 8.40% | 8.00% |
| 50 months | 8.40% | 8.00% |
| 60 months | 8.40% | 8.00% |
According to the statement, senior citizens (aged 60 years or above at the time of deposit/renewal) are eligible for an additional interest of 0.50% p.a. Women depositors will receive an additional 0.05% p.a. Renewals of matured deposits will attract an additional 0.15% p.a.
For deposits above Rs 10 crore, the applicable interest rate may vary from the published card rate but within the cap on Rate of Interest specified by the RBI, it added.
Fixed Investment Plan See Bigger Rate Cut
Shriram Finance also cut interest rates on fixed investment plan. According to the statement, it has slashed interest rates by 115 bps to 7.35% on the 12-23 months tenure, by 125 bps to 7.5% on the 24-35 months tenure, and 100 bps to 8% on the 36-48 months deposit duration.
Fixed Investment Plan (FIP) Interest Rates (Effective June 26, 2025):
| Tenure | Existing Rate (p.a.) | Revised Rate (p.a.) |
|---|---|---|
| 12 – 23 months | 8.50% | 7.35% |
| 24 – 35 months | 8.75% | 7.50% |
| 36 – 48 months | 9.00% | 8.00% |
Shriram Finance said women depositors will receive an additional 0.05% pa. Fixed investment plan will be available only through ‘Shriram One’ mobile application and the company’s website. Other terms and conditions of the Fixed Investment Plan (FIP) shall remain unchanged.
Shriram Finance Fixed Deposits are rated ‘AA+ (Stable)’ by ICRA and ‘AA+/Stable’ by India Ratings and Research.
Recently, banks have also cut their interest rates on both deposits and lending. They include HDFC Bank, ICICI Bank, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, and India Bank, among others.
Earlier this week, State Bank of India cut interest rates on savings deposits by 25 bps to its all-time low of 2.5%.
The rate cuts by banks come after the RBI in its last monetary policy review reduced the repo rate by an unexpected 50 bps to 5.5%.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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