Higher Interest : Guaranteed (Fixed Deposit) FD Plan, Will Get 9.95% Interest, check apply process

The NCDs are secured in which the claims of the secured NCD holders are superior to the claims of any unsecured creditors as the former would constitute secured obligations of the company.

In times like these when the interest rate is on a downward trajectory, Shriram Transport Finance, a deposit-taking Non-Banking Financial Company (NBFC), has come out with a public issue of secured redeemable non-convertible debentures (NCDs), offering interest rate as high as 9.70 per cent to the depositors.

Interestingly, NPS has proved to be a safe investment instrument. Due to which the number of account holders in NPS is increasing continuously. Not only this, many PSUs are also putting their pension funds in it. At present around 7,900 corporates have accepted the NPS system, which has a corpus of Rs 50,000 crore with 10 lakh contributors. According to the National Pension System, pension is made after 60 years in this. At the same time, this pension depends on the amount you deposit every month.

If an investor wants to invest in NPS, then this medium is also a good option for him. For your information, let us tell you that the National Pension System was started by the Central Government in January 2004 for the first Government Employees. However, the government made it open to every citizen of the country to invest in NPS in 2009. Which is now a sponsored pension scheme of the government.

Tenor and Coupon rate of interest

• 42 months: 9.12% (Monthly)
• 60 months: 9.22% (Monthly)
• 84 months: 9.31% (Monthly)
• 30 months: 9.30% (Annual)
• 42 months: 9.50% (Annual)
• 60 months: 9.60% (Annual)
• 84 months: 9.70% (Annual)
• 42 months: 9.50%* (Cumulative)
• 60 months: 9.60%* (Cumulative)
• 84 months: 9.70%* (Cumulative)

For your information, let us tell you that the total asset in the new pension system i.e. NPS and Atal Pension Yojana has reached 4.17 lakh crore as of 31 March 2020. At the same time, till this date, the number of beneficiary of the pension scheme has increased to about 3.45 crores.

Here are a few important features of the Shriram Transport Finance Tranche 1 Issue:

• The minimum investment is Rs 10,000 across all series collectively. There are 10 series of NCD is the issue with varying tenure and interest rate.
• There is no interest reset period in the Shriram Transport Finance Tranche 1 issue. It means there is no Call or Put option and the NCDs will be redeemed only on maturity.
• There are 3 monthly payout options, four annual payouts and 3 cumulative options in the issue. Depending on your regular income needs, choose the one that suits you.
• The tenure of the NCDs is 30 months, 42 months, 60 months and 84 months.
• For monthly payouts, NCDs tenure available is – 42 months, 60 months and 84 months.
• For annual payouts, NCDs tenure available are – 30 months, 42 months, 60 months and 84 months
• For cumulative payouts, NCDs tenure available is – 42 months, 60 months and 84 months.
• The minimum coupon rate of interest is 9.12 per cent for the 42 months tenure with monthly payouts.
• The maximum coupon rate of interest is 9.70 per cent for the 84 months tenure with annual payouts.
• Senior Citizens will be eligible for an additional incentive of 0.25 per cent per annum, which provides a maximum rate of interest of 9.95 per cent for the 84 months NCDs.