Overview of Gruh Finance Fixed Deposit
GRUH Finance Limited is a Housing Finance Company or HFC which is recognised by National Housing Bank. As a subsidiary of HDFC Ltd., GRUH Finance Limited has 159 offices in 8 states of India, namely, Gujarat, Maharashtra, Karnataka, Rajasthan, Madhya Pradesh, Chhattisgarh, Tamil Nadu and Uttar Pradesh.
Gruh Finance Ltd Fixed Deposits
GRUH Fixed Deposits have been given a rating of FAAA by CRISIL, which is the highest possible rating that can be awarded to a Fixed Deposit scheme. This makes GRUH deposit an extremely secure investment option. It has a variety of payout options to choose thus making it as customizable as possible. GRUH Deposit can be availed by any resident Indian, thus making it extremely accessible.
A high safety rating by CRISIL indicates that punctual payment of interest amounts as well as the principal amount, hence making the scheme a feasible investment tool which can be used to meet the expected future expenses of the depositor.
What is the eligibility to be met in order to invest in a fixed deposit?
In order to apply for a fixed deposit account with GRUH Finance Ltd. the following criteria has to be met
- Resident Indian
- Minors can apply through Guardians or Association of Persons (AOP)
- Hindu Undivided Family (HUF)
- Proprietary Concerns
- Partnership Firms
What are the schemes offered under the fixed deposit category?
There are four types of schemes offered to customers under the category of GRUH Deposits. The plans are-
Monthly Income Plan
This plan offers the depositor with a payout of the interest amount every month. This can be availed by persons looking to receive a monthly income in return for Fixed Deposit account.
Quarterly Income Plan
Interest under this plan is paid at every quarter, i.e., 1st July, 1st October, 1st January and 31st March. Thus making it useful for expected quarterly payments, such as children’s school fees, etc.
Annual Income Plan
In case of Annual Income Plan, interest is paid every year on 31st March. This payout option is widely beneficial for applicants with expenses towards annual credit card fees, life insurance premiums, car insurance premiums, etc.
Cumulative Growth Plan
Under this plan, interest is compounded annually on 31st March and is payable on maturity. This plan is advisable for applicants seeking benefits during the big events of life, such as, wedding, children’s postgraduate education, etc.
What is the minimum deposit amount accepted?
Rs. 1,000 is the minimum deposit amount accepted by Gruh Finance Ltd. This number is subject to the tenure and category chosen by the applicant, ranging from Rs,1,000 for the Cumulative plan and going up to Rs. 20,000 for the Monthly category, with Quarterly and Annual plans standing at Rs. 2,000.
What is the maximum limit on the fixed deposit account?
There is no maximum limit for the GRUH Deposit schemes.
What are the minimum and maximum deposit tenures allowed with the fixed deposit scheme?
The minimum deposit tenure with GRUH Finance Ltd. is 12 months and the maximum is 120 months.
How do I avail a Fixed Deposit account with GRUH Finance Ltd.?
In order to avail a GRUH Deposit, you must get a physical form of the application from a branch or an agent.
The following documents need to be submitted along with the Application Form-
- KYC documents
- Application Form Physical Form
- Identity Proof, in the form of, Passport, PAN card, Aadhar card, etc.
- Address Proof, in the form of, Water bill, Electricity bill, Passport, Aadhar card, etc.
- Recent Photograph
Points to remember while applying for a GRUH Deposit-
- Fixed Deposit account applications can only be made using the latest Deposit Application Form.
- Account Payee cheque/DD should be issued in the favour of GRUH Finance Ltd. (This facility is only allowed for places where GRUH offices are not present)
- Non CTS and outstation cheques are not accepted.
- Signature or thumb impression needs to witnessed mandatorily
- A photograph of the applicant must accompany the Application form.
What are the rates of interest offered by GRUH Finance Ltd.?
GRUH Deposit rates of interest are competitive and are divided purely based on the scheme chosen by the applicant.
The interest rates fall in the range of 8% p.a. and climb all the way up to 8.75% p.a. The rates essentially are based on the tenure and pay out option chosen by the applicant.
The tenure with the best returns seemingly is the Quarterly scheme with a tenure of 12-35 months at 8.50% p.a.
Is there a tax saver Fixed Deposit scheme available with GRUH Finance Ltd?
There are quite a few tax benefits offered under with GRUH Deposit. They are as follows-
- No tax deducted at source for fixed deposit amounts up to Rs. 5,000 each financial year
- Trust deposits availed with GRUH Finance Ltd. qualify under the category of specified investment as defined under Section 11(5) of the Income Tax Act, 1961.
- Fixed Deposit schemes with GRUH Finance Ltd. are exempt from Wealth Tax
What are the most important features of GRUH Finance Ltd. Fixed Deposits?
Following are the features of the GRUH Deposit-
- GRUH Deposits are recognised by the National Housing Bank (NHB)
- Electronic Clearance Facility (ECS) is provided to depositors for payments towards interest in the case of non-cumulative deposits.
- Advance interest warrants are provided for one financial year
- Nomination facility is made available to depositors
- Depositors are also given the freedom of repayment using demand draft facility
Can the loan overdraft facility be availed against Fixed Deposit?
Loans are offered to customers holding fixed deposit account with GRUH Finance Ltd. under the National Housing Bank (NHB) guidelines. Loan facility is allotted for up to 75% of the fixed deposit amount. This facility can only be availed once the depositor has completed 3 months of the deposit account with GRUH.
Are the any concessions for senior citizens?
Senior Citizens and Trusts, both receive a straight additional 0.25% p.a. over the current rack rates.
Are there any benefits for NRI customers?
GRUD Deposit does not cater to non-resident depositors.
Does Bank allow premature withdrawal of Fixed Deposit?
Yes, premature withdrawal facility is awarded to depositors of GRUH Deposits in accordance with the current National Housing Bank (NHB) directives. Under this directive, premature withdrawal is not allowed before the expiry of 3 months from the date of deposit.