Shriram Transport Finance Fixed Deposits

If you’re exploring fixed income investment options, Shriram Transport Finance Fixed Deposits (now merged under Shriram Finance) are among the more attractive non-bank fixed deposit schemes available in India. Let’s dive into what you need to know — what the current interest rates are, eligibility, features, pros & cons, and whether it suits your investment goals.

Who is Shriram Transport Finance / Shriram Finance?

• Shriram Transport Finance Company Limited (STFCL) was one of India’s largest commercial vehicle financers. It, along with Shriram City Union Finance and Shriram Capital, is now part of Shriram Finance Limited (SFL). Paisabazaar+2Shriram Finance+2

• The Shriram Group has a long history in vehicle finance, MSME lending, and was founded in the 1970s. It is well-known, with many branches across India, which lends credibility and reach. Wikipedia+2Paisabazaar+2

What Are Fixed Deposits (FDs) with Shriram Finance & Key Features

Here are the main features to know:

• Tenure Options: FDs with Shriram are offered for several tenures, generally between 12 to 60 months. There are also special tenures like digital-only FDs of ~15 months. Shriram Finance+1

• Minimum Deposit: Typically, you can start with ~ ₹5,000. Shriram Finance+1

• Cumulative vs Non-Cumulative:

  • Cumulative FDs: Interest accumulates and is paid only at maturity along with principal.

  • Non-Cumulative FDs: Interest is paid out periodically (monthly, quarterly, half-yearly, etc.). BankBazaar+1

• Additional Bonuses:

  • Senior citizens (age 60 and above) usually get an extra interest of ~ 0.50% p.a.. Shriram Finance+2The Economic Times+2

  • Women depositors sometimes get an extra ~ 0.05%-0.10% p.a. bonus. The Economic Times+1

  • Renewals of matured FDs may also attract a slightly higher rate over fresh deposits. The Economic Times+1

• Premature Withdrawal: Allowed, but with penalty or lower interest rates depending on how much time has passed. If terminated after certain period (e.g. after 6 months but before maturity), interest may be lower by ~2% p.a. than the FD rate. Groww

• Loan Against FD: Some schemes allow borrowing against the FD amount. Groww

Current Interest Rates (2025) for Shriram Finance Fixed Deposits

Here are the updated FD interest rates as of mid-2025. These reflect fresh deposit / renewal rates. Always check the official website or branch for current rates before you invest. The Economic Times+2BankBazaar+2

Rate Changes & Recent Revisions

• As of May 2, 2025, Shriram Finance revised its FD rates: some tenures saw decrease or adjustment in rates. The Economic Times

• Senior citizens continue to receive an additional 0.50% p.a., women depositors ~0.10%, renewal bonus ~0.25%. The Economic Times

• The revisions were in response to changes in RBI policy, especially repo rate cuts. The Economic Times

How to Apply / Invest in Shriram Finance FDs

Here are the steps you would usually follow:

1. Visit the Official Website or Branch: Use the Shriram Finance / Shriram Transport Finance site or physical branch. Shriram Finance+1

2. Select FD Scheme: Choose tenure (12-60 months or special digital tenures), cumulative or non-cumulative. Decide payout frequency if non-cumulative.

3. Fill Application: Provide identity docs (Aadhaar, PAN, etc.), proof of residence. Nominee information. Groww

4. Make Deposit: Minimum ~ ₹5,000 (or as per scheme). Payment via cheque/online/NEFT etc.

5. Receive FD Receipt: For proof / maturity claim.

6. Renewals: Many FDs allow renewal, sometimes with automated renewal options. Shriram Finance+1

Pros & Cons of Investing in Shriram Finance Fixed Deposits

Who Should Consider These FDs?

Shriram Finance FDs can be suitable if you:

• Are looking for moderate to good returns with relatively lower risk than equity or mutual funds.

• Want a stable income stream (non-cumulative variants) or willing to let interest compound (cumulative).

• Are senior citizens or women — to take advantage of bonus rates.

• Have surplus funds that you don’t need in the short term (1-5 years).

• Prefer NBFC FDs over banks due to possibly better rates and acceptable risk.

If you expect interest rates to go up significantly, you might consider shorter tenure FDs or laddering your deposits so you’re not locked in at lower rates. Also compare with bank FDs or small finance banks to ensure you’re getting competitive yields.

Tax, Penalties & Important Fine Print

• TDS: Interest earned above a certain annual threshold is subject to TDS (Tax Deducted at Source). Non-submission of PAN may attract higher TDS rates.

• Form 15G / 15H: Senior citizens or other investors whose total interest income lies below the taxable limit may file these forms to avoid or reduce TDS.

• Premature Withdrawal: Most FDs allow it, though with penalties. Often, if withdrawn before a minimum period (say 6 months), the interest rate might be significantly lower.

• Renewal Terms: If you renew, make sure to check the renewal rate, whether bonus applies, and whether the same payout frequency is acceptable.

• Credit Risk: Even though Shriram Finance has good reputation, NBFCs depend on liquidity, asset quality, and regulatory environment. It is important to verify the latest credit rating before investing.

Read more: Aadhar Housing Finance IPO GMP: What Investors Need to Know

Example: Maturity Calculation

To understand what returns you might get, here’s a simple example:

• Amount invested: ₹100,000

• Tenure: 36 months (3 years)

• Rate assumed: 8.10% p.a. (non-cumulative, yearly rest) for general public.

Compounded annually, the maturity value will be roughly:

If you’re senior citizen and get +0.50%, or renewal bonus, your effective rate might be ~8.60% → maturity ~ ₹127,730.

(Actual returns depend on whether interest is cumulative, when it is paid, tax deductions, etc.)

Where to Find Official & Updated Info

It’s always safest to check primary sources for updated rates / terms:

• The official Shriram Finance website, especially the Fixed Deposit Interest Rates section. Shriram Finance+2Shriram Finance+2

• Announcements via reputed financial news outlets, e.g. Economic Times. The Economic Times+1

• Finance portals / FD aggregators (like BankBazaar) for inter-comparison of FD offers. BankBazaar+1

Final Verdict: Is Shriram Finance FD a Good Investment?

Yes — for many conservative investors, senior citizens, and those who prefer fixed income over volatile assets, Shriram Finance FDs are a good option. The rates are competitive (especially for 3-5 year tenures), they offer bonuses for seniors and women, and have flexible payout options.

However, you should be mindful of:

• The lock-in / liquidity limitations. You can lose significant interest if you pull out early.

• Inflation: If inflation is high in those years, real returns (after adjusting for inflation) may be modest.

• Tax impact: Effective returns reduce when you consider TDS and other taxes.

If you have enough funds and want to balance your portfolio, splitting some portion into Shriram Finance FD, some into shorter-term bank FDs, or other low-risk instruments (like government bonds / PPF) helps in diversification.

Closing Thoughts

Shriram Transport Finance (Shriram Finance) fixed deposits remain an attractive fixed income tool in 2025. With interest rates reaching up to 8.40% p.a. for 3 to 5 year tenures for regular customers (higher with bonuses), they compete well with bank FDs and small finance banks. But like with all fixed income options, read the fine print, understand what happens in case of early withdrawals, renewal terms, and factor in tax before making your decision.