Chennai-based Sundaram BNP Paribas recently revised its interest rates on term deposits. The joint venture between non-banking finance company Sundaram Finance Ltd and BNP Paribas Personal Finance in a statement last month said that the interest rate for senior citizens has been hiked to 8.25 percent as against 8 percent on deposits for 12 and 18 months.
For 24 and 36 months, the rate is 8.50 percent and for the deposits of 48 and 60 months, it is at present 8.50 percent.
For individuals, the rate has been increased to 7.75 percent for deposits of 12 and 18 months. For deposits of 24 and 36 months, the rate is 8 percent and on deposits of 48 and 60 months, the rate is 8 percent.
The housing finance firm with a current deposit base of over Rs 1,000 crore from 17,000 depositors, is looking to raise Rs 3,500 crore during this financial year to fund its expansion, PTI reported. The company said that it will continue to focus on South India to increase penetration and will raise the amount "through a mix of term loans from banks, refinance from National Housing Bank, subordinated debt, fixed deposits and commercial papers." It has 110 branches across the country serving 50,000 customers.
Please Note: Sundaram BNP Paribas' ICRA rating for fixed deposits was upgraded to MAA+ (Positive) as of 6 July 2018. MAA is one rank below the highest credit rating assigned by the rating agency to public deposit programs and is considered as "low risk." However, investing your money in NBFC still holds an element of risk and there have been defaults in repayment from this sector in the recent past.