Wednesday, December 5, 2012

Fix Deposits by Companies ... 2

Differences between Manufacturing companies and Finance companies,

Manufacturing Companies:
  1. Manufacturing Companies are permitted to mobilize deposits from the Public up to 25% of their net worth and up to 10% from their Share Holders.
  2. They can accept deposits for a Minimum Period of 6 Months and a Maximum of period of 36 Months.
  3. Interest will be paid on Monthly, Quarterly, Half-yearly, Annually & on Maturity. (cumulative).
  4. Investor can withdraw the deposits before the maturity. In this case he gets the interest till date, but less penalty which is usually 1% or 2 %
 Finance Companies:
  1. Finance Companies are permitted to accept deposits based on their credit rating issued by any of the agencies like CARE, ICRA,CRISIL and FITCH.
  2. They can accept deposits for a minimum period of 12 months and a maximum period of 60 months.
  3. Interest will be paid on monthly, quarterly, half-yearly, Annually & on maturity. (cumulative).
  4. Deposits with highest /high rating companies are safe. They may offer an Interest rate between 9 % & 11%.
  5. Investors can avail a loan up to 75% of the amount invested and also allowed Premature withdrawal.

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