Sundaram Home Finance, the wholly owned subsidiary of Sundaram Finance, has increased interest rates on fixed deposits effective August 1, 2026. According to reports from The Hindu BusinessLine, the company has raised rates on 3, 4 and 5 year deposits for regular customers and senior citizens. For regular category deposits, the interest rate has been increased by 0.25 per cent to 7.25 per cent for 3 year deposits and to 7.40 per cent for 4 and 5 year deposits. Senior citizens will benefit from an increase of 25 basis points to 7.75 per cent for all three tenure options.
For trust deposits, the interest rate has been increased by 25 basis points to 7.50 per cent for 3, 4 and 5 year deposits. As reported by The Hindu BusinessLine, the company's deposit base stood at ₹2,295 crore as on March 31, 2026. The deposit base has now increased to over 15,000 depositors with a renewal rate of over 75 per cent.
D Lakshminarayanan, MD of Sundaram Home Finance, stated that deposits have historically been an integral and important source of funding and constitute about one fourth of their funding basket. According to the company's management, they have always valued the faith and trust placed in them by the depositors. The rate increases are designed to benefit regular customers and senior citizens who are key stakeholders in the company's funding strategy.
