Mumbai: Bajaj Finance on Monday followed top banks in lowering deposit rates on certain tenures to reflect easing policy rates. “These rate cuts are a part of monetary policy transmission, and other large NBFCs will follow soon,” says VijayKuppa, CEO, Incred Money. Rates are now up to 50 basis points, or half a percentage point lower, in line with the reduction in policy rates since February.
Agencies
It also lowered rates more on long-tenure deposits, perhaps indicating both the receivable time-lines of Bajaj Finance’s assets and stiffer competition for shorter-tenure commitments in a falling rate cycle. This is the second such reduction by Bajaj Finance.
An 18-month deposit will earn the highest interest of 7.4%, while a 24-60 month deposit will earn 7.25%. Short tenure deposits of 12-14 months and 15-23 months will earn 7% and 7.35%, respectively. Senior citizens will get an additional 55 basis points.
