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The CRISIL AAA/STABLE and [ICRA]AAA(Stable), <keyword id="111876" type="General" weightage="100" keywordseo="bajaj-finance" source="Orion">Bajaj Finance</keyword> has good news for all its investors. With effect from November 8, 2022, the fixed deposit rates for all investments starting at Rs 15,000 have been changed. In order to speed up the growth of an investor's capital, all investor categories and tenors now get higher FD interest rates up to 7.85 per cent p.a. Customers under the age of 60 can now invest their money for a 44-month tenor and earn up to 7.60 per cent annually. Senior folks receive an additional 0.25 per cent of all base rates as special rate perks. Therefore, older persons can make up to 7.85 per cent p.a. for a tenor of 44 months. Revised FD rates for customers below 60 years of age The regular rates for customers below 60 years of age have been revised by 10 bps, the revised interest rates are as follows: Senior citizens too enjoy the rate change, along with the additional 0.25% p.a. interest rates. They can now earn up to 7.85 per cent p.a. for 44 months. The table below shows the FD interest rates for senior citizens: Special interest rates Investors looking for higher returns and longer investment terms can opt for special tenure offered by Bajaj Finance on fixed deposit of 15, 18, 22, 30, 33, and 44 months. Below are the updated special rates for all customers. Small monthly instalments In addition to fixed deposits, Bajaj Finance offers the <keyword id="8550098" type="General" weightage="50" keywordseo="systematic-deposit-plan" source="Orion">Systematic Deposit Plan</keyword>, the first monthly savings option in the sector. Each investment is considered as a separate fixed deposit, with investments starting at just Rs. 5,000 per month. You can make small monthly deposit and each deposit matures on a different month in the Monthly maturity scheme and on a single date in the single maturity scheme. Highest safety and credibility ratings When it comes to making an investment, choosing a safe and credible instrument is key to reducing risk and ensuring security of your finances. Since an FD is not linked to market fluctuations, it is a safer investment. What's more, rating agencies such as CRISIL and <keyword id="6354972" type="General" weightage="50" keywordseo="icra" source="Orion">ICRA</keyword> rate the investment instruments of various financial institutions. A high rating means that the instrument is safe, and you can make an investment stress free knowing that you will receive your interest earnings and original invested amount on time and without fail. The <a href="https://www.bajajfinserv.in/fixed-deposit" target="_blank">Bajaj Finance FD </a>has the highest safety and credibility ratings from CRISIL and ICRA, assuring the security of your invested amount. You can benefit from the FD calculator and a 100 per cent digital process in addition to these advantages of the <keyword id="7860093" type="General" weightage="50" keywordseo="bajaj-finance-fixed-deposit" source="Orion">Bajaj Finance Fixed Deposit</keyword> to maximise convenience. With the help of the FD calculator and web application, you may more easily and quickly predict your returns and plan your investments accordingly. Make a safe and secure <a href="https://www.bajajfinserv.in/fixed-deposit-online?ProductName=FD" target="_blank">online FD</a> investment in a matter of steps to increase your wealth. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/the-justice-department-said-that-it-seized-3-4-billion-in-bitcoin-stolen-a-decade-ago-through-the-silk-road-dark-web/articleshow/95365257.cms">The Justice Department said that it seized $3.4 billion in bitcoin stolen a decade ago through the 'Silk Road' dark web</a> <a href="https://www.businessinsider.in/business/startups/news/unacademy-lays-off-10-of-workforce-as-funding-winter-deepens/articleshow/95369741.cms">Unacademy lays off 10% of workforce as funding winter deepens</a> <a href="https://www.businessinsider.in/business/corporates/news/paytms-net-loss-widens-by-20-yoy-to-571-crore-in-q2-but-down-sequentially/articleshow/95369930.cms">Paytm's net loss widens by 20% YoY to ₹571 crore in Q2 but down sequentially</a>

Bajaj Finance raise fixed deposit rates by up to 10 bps – now offers returns of up to 7.85%

Managing liquidity is an important aspect of personal <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword> planning. Even individuals with good investment portfolios find it difficult to manage liquidity. A sudden requirement of cash can push one into a situation where he/she may have to sell assets, sometimes at a discount to fair value. However, if smartly used, the traditional bank fixed deposits can come to your rescue. Banks offer personal loans against bank fixed deposits and you can raise short-term money without breaking your fixed deposits. 
 Another advantage that the borrower enjoys is the low <keyword id="37018" type="UNKNOWN" weightage="100" keywordseo="interest-rate">interest rate</keyword>, compared to other <keyword id="180660" type="UNKNOWN" weightage="100" keywordseo="personal-loan">personal loan</keyword>s. Most banks offer personal loans at an interest rate ranging between 16% and 24%. But a personal loan taken against a <keyword id="74427" type="UNKNOWN" weightage="100" keywordseo="fixed-deposit">fixed deposit</keyword> ensures that you pay just 1% more than the rate of interest payable by the bank on the fixed deposit. 
 
For example, if a bank pays 9% interest on a three-year fixed deposit, the rate of interest payable on the personal loan raised against it will be 10%. This saves a lot of money that you would have paid as interest, had it been a traditional personal loan, backed by no security. 
 
Personal loan against a bank fixed deposit is easy to obtain and the process generally takes less than one day. An individual has to submit the application form duly filled, along with fixed deposit receipts and other documents, such as pledge/lien letter and overdraft agreement as notified by the bank. There is no prepayment penalty charged by the bank on the repayment of personal loans against fixed deposit. Banks do charge a small processing fee while providing this loan. But if you have a long-standing relationship with the bank, it may choose to waive half the fee. 
 
Banks generally offer 90% of the value of the fixed deposit. For instance, if you have made a fixed deposit with a bank just one month ago, the bank will be offering you a personal loan to the extent of 90% of the amount you have invested. If the fixed deposit has already run for two years, the bank will be comfortable to lend you a bit more money than the amount you invested as some interest has been accrued on it over the past two years. Simply put, the amount of loan offered against a fixed deposit will be closer to 90% of the value of the fixed deposit. If the borrower fails to service the loan, the bank has the right to foreclose the fixed deposit to recover the money it has lent. This also means that the tenure of the personal loan given against the bank’s fixed deposit cannot exceed the residual tenure of the fixed deposit. 
 
Banks also offer overdraft facility against such fixed deposits. This enables borrowers to have access to liquidity. A borrower can use funds for a short period of time and repay the money much before the due date. In this way, he pays interest only for the time he has availed the cash from the bank. 
 
For example, an individual has a fixed deposit of Rs 1 lakh. The bank’s approved credit limit is Rs 90,000 against the FD and the tenure is 15 months. If the person draws Rs 50,000 on the 1st of the month and then repays the money on 17th of the same month, he is supposed to pay the interest on Rs 50,000 availed for 17 days. 
 However, when you take a loan against a fixed deposit, it should be free from lien or encumbrance, and the deposit should not be in a minor’s name. If this deposit is made under joint names, say a husband and a wife, all holders of the deposit have to execute the loan documents. The liability to repay the loan will lie with all holders of the deposit. The deposit holders will continue to receive interest on the underlying deposit. However, they need to service the <keyword id="6357050" type="COMPANY" weightage="100" keywordseo="EMI">EMI</keyword> on the loan against the deposit. 
 
A personal loan against fixed deposit can help you in times of liquidity crunch. But you should be looking at it as a means to raise short-term money. If you go overboard with a personal loan against fixed deposit and cannot repay on time, you stand to lose your bank fixed deposit as the bank forecloses that fixed deposit to recover the money it has lent. Also, it shows in your credit report, popularly known as the CIBIL report. Such default can pull your CIBIL scores down. Therefore, when you are raising personal loan against bank fixed deposit, do it responsibly. 
 
About the author: Rajiv Raj is the Director and Co-founder of <a href="http://www.creditvidya.com">www.creditvidya.com</a>.

Looking For Quick Cash? Get A Personal Loan Against Fixed Deposit

When thinking of safe savings, most of us always home in on fixed deposits (<keyword id="6568461" type="CITY" weightage="20" keywordseo="FDs">FDs</keyword>) offered by banks. And rightly so, because such FDs have many advantages, such as: interest rates ranging from 8.5% to 9.5%, tax savings, and the facility of premature withdrawal, if required. But have you ever considered <keyword id="603034" type="COMPANY" weightage="20" keywordseo="corporate-FDs">corporate FDs</keyword>, which offer higher returns? 
 
Recently, some Indian banks reduced the interest rates on deposits by 0.25%–0.75%, which has made corporate FDs even more lucrative. 
 
What exactly are Corporate FDs? 
 Corporate FDs, or non-convertible debentures (NCDs), are similar to bank FDs except that they are offered by corporates and not financial institutions or banks. Corporate FDs are, basically, fundraising exercises through which a corporation raises <keyword id="6354840" type="PERSON" weightage="20" keywordseo="money">money</keyword> for running its business. Here, the investor’s (your) money is used for repaying existing loans, expanding businesses, optimizing business plans, and other similar activities. Some of the popular corporate offering FDs come from Mahindra <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword>, Gati, DHFL, PNB Housing and Bajaj Finance. 
 
What’s good about Corporate FDs 
The first question on your mind must be: what makes corporate FDs better than regular FDs? And the answer to the same lies in the points below. 
 
· Rate of interest: Corporate FDs offer higher interest rates than those of a bank, in the range 9%–13%. Some companies offer even higher interest rates to senior citizens. 
 
· Credit ratings: Corporate FDs are rated by independent rating agencies, such as CRISIL, ICRA and CARE, which assess the credit worthiness of the issuing companies. On the other hand, credit ratings are not applicable in the case of bank FDs. 
 
· Interest payments: Investors can choose the frequency of interest payments: monthly, quarterly, half-yearly, annually, or on a cumulative basis. This option offers investors with an additional source of income. 
 
Not all is hunky dory about Corporate FDs 
Before you take a plunge in Corporate FDs market, you should measure its pros against the below-mentioned cons. 
 
· FD term: Banks offer multiple term options for investing, starting from 30 days. On the other hand, the typical time frame of a corporate FD ranges from 1 year to 8 years. 
 
· Withdrawals: Bank FDs are easy to withdraw, whereas withdrawing from a corporate FD can take up to a few weeks. 
 
· FD <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword>: RBI’s Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits of up to Rs 1 lakh. The same cannot be said though for the Corporate FDs. 
 
· Risk Quotient: Corporate FDs come with higher risk as they are unsecured. If a company defaults, the investor stands to lose significant amount of the invested money. To minimize risk, it is advisable to invest in companies with high credit ratings. 
 
Make a note of, when investing … 
 Before investing in a corporate FD, one of the good initial filters is checking the company’s <keyword id="142429" type="EVENT" weightage="20" keywordseo="Credit-Rating">credit rating</keyword> and the corresponding rating agency. The investor can check the company’s track record in dealing with investors and depositors. Hence, credit ratings and investor goodwill should be the key deciding factors. 
 
Go for the Corporate FD if you: 
 
- are comfortable with lower or no liquidity 
- have seen the credit ratings and are comfortable with the sector and the brand (company) 
- are seeking returns higher than bank FDs 
 
 
Table 1: Pros and Cons 
 
 
 
Table 2: Some of the current corporate FDs 
 
 
Image: Indiatimes 
 
(About the author: This article has been written by Naveen Kukreja, Director, Paisabazaar.com)

Here’s Why You Should Choose Corporate FDs Over Traditional FDs

Mumbai, Kerala-based ESAF Small Finance Bank on Monday filed its Draft Red Herring Prospectus (DRHP) with markets regulator <keyword id="5083555" type="ORGANIZATION" weightage="20" keywordseo="Securities-and-Exchange-Board-of">Securities and Exchange Board of</keyword> India for an IPO. As per the DRHP, the aggregate issue size is up to ₹997.78 crore, comprising of a fresh issue component of up to ₹800 crore and an Offer for Sale up to ₹197.78 crore by promoter and other selling shareholders i.e <keyword id="8150050" type="UNKNOWN" weightage="20" keywordseo="PNB-MetLife-India-Insurance-Company">PNB Metlife India Insurance Company</keyword>, Bajaj Allianz Life Insurance Ltd, <keyword id="4412564" type="PERSON" weightage="20" keywordseo="Pi-Ventures-LLP">PI Ventures LLP</keyword>, and John Chakola. The net proceeds from the fresh issue will be used to augment the bank's Tier 1 capital (primarily loans, advances and investment portfolio) to meet future capital requirements. The company may consider a pre-IPO placement of up to ₹300 crore, subject to counsel from the lead managers. As per the CRISIL report, ESAF is one of the leading small finance banks in terms of yield on advances, AUM growth rate, and share of retail deposits. It currently operates across 21 states and two Union Territories with 550 branches, 421 customer service centres (which are operated by its business correspondents), 12 business correspondents, 158 banking agents and 327 ATMs and serves over 4.68 million customers. As of March 2021, ESAF's gross advances stood at ₹8,415 crore, compared with ₹6,606.51 crore a year ago and total deposits were at ₹8,999.43 crore against ₹7,028.38 crore. Additionally, the DRHP states that the bank will continue to focus on its rural and semi-urban franchisees and increase deposits across NRIs and CASA. As on date, it stands to have the highest share of retail deposits as a percentage to the total deposits when compared to the other small finance banks. Investment Bankers appointed to the issue are Axis Capital Ltd, Edelweiss Financial Services Ltd, <keyword id="334749" type="COMPANY" weightage="20" keywordseo="ICICI-Securities-Ltd">ICICI Securities Ltd</keyword>, and IIFL Securities Ltd. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/zomato-market-value-has-reached-1-10-lakh-crore-but-experts-had-different-views/articleshow/84757790.cms">While investors are still upbeat on Zomato stock, experts find it overvalued and expensive</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/wazirx-coindcx-and-other-indian-crypto-exchanges-will-reportedly-have-new-advertisement-guidelines-in-the-next-seven-to-ten-days/articleshow/84756896.cms">WazirX, CoinDCX and other Indian crypto exchanges will reportedly have new advertisement guidelines in the next seven to ten days</a>

Kerala-based ESAF Small Finance Bank looks to raise ₹998 crore through IPO

As the government is set to announce a slew of reforms, one of them may not attract you much. 
 The government plans to lower down <keyword id="6371181" type="UNKNOWN" weightage="20" keywordseo="interest-rates">interest rates</keyword> on saving products like <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>, National <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">Savings</keyword> Certificate (NSC) and the bank FDs may also attract lower interest. 
 
The move by the finance ministry will impact people who take maturity period of less than five years. However, it is speculated that women and senior citizens will b exempted with savings plans like Sukanya Samriddhi Yojana. 
 Meanwhile, the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> wants the banks to follow suit and follow the small savings rate cut with lower fixed deposit rates. 
 RBI says the PPF and other plans gave higher returns as compared to <keyword id="6377620" type="UNKNOWN" weightage="20" keywordseo="fixed-deposits">fixed deposits</keyword>. This has, in turn, forced banks to maintain higher deposit rates.

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Bajaj Finance raise fixed deposit rates by up to 10 bps – now offers returns of up to 7.85%

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Looking For Quick Cash? Get A Personal Loan Against Fixed Deposit

Rajiv Raj

Here’s Why You Should Choose Corporate FDs Over Traditional FDs

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Kerala-based ESAF Small Finance Bank looks to raise ₹998 crore through IPO

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Soon, you may not get return benefits on your savings

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