Shriram Finance Limited (SFL), the flagship company of the Shriram Group, has increased interest rates on its fixed by up to 40 basis points across select maturity periods following the Reserve Bank of India’s (RBI) recent repo rate hike.
The revised rates will come into effect on October 11, 2026, the company said on Friday.
Under the revised structure, deposits with a tenure of 12 months will earn 7% interest, up 15 basis points from the existing rate. The interest rate on 15-month digital-only deposits and deposits with tenures ranging from 24 to 35 months has been raised to 7.5% from 7.1%, marking an increase of 40 basis points.
For deposits with maturities between 36 and 60 months, the interest rate has been increased by 35 basis points to 7.85%.
Shriram Finance FD interest rates after revision
The revised interest rates for the specified tenures are as follows:
- 12 months: 7%, up from the existing rate by 15 basis points.
- 15 months (digital only): 7.5%, up from 7.1%.
- 24–35 months: 7.5%, up from 7.1%.
- 36–60 months: 7.85%, an increase of 35 basis points.
The company said other terms and conditions of its Fixed Investment Plan (FIP) would remain unchanged.
Senior citizens, women depositors to get additional benefits
Senior citizens aged 60 years or above at the time of making or renewing a will continue to receive an additional interest rate of 0.50% per annum.
Women depositors will be eligible for an additional 0.05% per annum. Customers renewing matured deposits will receive an additional 0.15% per annum, according to the company.
Deposits will be accepted in multiples of ₹1,000, subject to a minimum investment of ₹5,000.
RBI repo rate hike prompts rate revision
The revision follows the RBI’s decision to increase the benchmark repo rate by 25 basis points to 5.50% on Wednesday. The move marked the first rate increase in nearly four years, according to the information provided.
The rate decision came amid concerns over rising inflation and a weakening currency, signalling a shift in the central bank’s monetary policy stance.
Changes in benchmark interest rates can influence borrowing costs and deposit rates across the financial system, although the extent and timing of their impact vary among lenders and deposit-taking institutions.