“Shriram Finance saw a rating upgrade, which means they can borrow at lower rates, and hence, the company has decided to reduce rates. On the other hand, Bajaj Finance is keen to accelerate its fund raising and to achieve that, it has raised rates,” says Vijay Kuppa, CEO, Incred Money.
Bajaj Finance raised deposit rates across maturities from 18 months to 60 months. The lender will now offer an interest rate of 6.85% for deposits of 18-30 months, 10 bps higher than before, while rates on 31-60-month deposits have been increased by a sharper 45 bps to 7.4%, up from 6.95%. Senior citizens will earn an additional 35 bps across tenures.
Bajaj Fin hikes rates by up to 45 bps; Shriram Fin plans 35-bps cut
Shriram Finance will trim rates by 15-35 bps on its deposits.For an 18-23-month deposit, it will offer 7%, down by 15 bps, while the rate for a 24–35-month deposit will be lower by 20 bps at 7.05%, and for a 36-60-month deposit, it will offer 7.25%, which is 35 bps lower than the existing rates.
Senior citizens will earn 50 basis points more, with women depositors earning an extra five basis points. These rates are higher than the fixed deposit rates of large lenders. Currently, a threeyear deposit from HDFC Bank earns 6.5%. “While both Bajaj Finance and Shriram Finance have the highest ratings, one could go with Shriram for shorter tenures of 18 months and Bajaj Finance for 60 months,” says Anup Bhaiya, MD and CEO, Money Honey Financial Services.
