Mahindra Finance Fixed Deposit - Fixed Deposit – FAQs
1. What are the schemes of deposits
available ?
A cumulative and non cumulative scheme
2. What is the difference between
a Non cumulative deposit and a Cumulative deposit ?
In Non cumulative scheme, interest
is payable on half yearly basis. The scheme will be convenient for persons like
pensioners, who require periodical interest payment. In Cumulative deposit scheme,
interest is payable at the time of maturity along with the principal. This scheme
is suitable for persons who do not require periodical interest payment and this
can be thought of as a money multiplier scheme
3. What is the minimum deposit
amount for Cumulative Deposit & Non cumulative Deposit ?
Minimum amount under cumulative deposit
is Rs. 10000/- and under non cumulative scheme is Rs. 25000/-
4. How do I tender the amount for
the deposit?
By means of a Cheque/DD issued in
favour of Mahindra Finance- Fixed Deposit and submit in respective HDFC Bank collection
centre. Alternatively, Depositor can send the DD Payable at Mumbai to the Registrar.
5. Is there a prescribed form for
making deposits?
Yes. Application for deposit should
be made on the prescribed form of respective companies.
6. The parents of a Minor are not
alive, who can be Guardian?
Only the person(s) who have been appointed
as guardian by the Competent Court should sign the application. A copy of the Court
Order has to be given for our files.
7. Can a deposit be made in the
name of minor alone or jointly with another?
You can make a deposit in the sole name of the minor. Also, in the name of minor
jointly with one or two individuals. In case of a minor, the date of birth of the
Minor should be indicated in the deposit application form in the space provided.
In the case of Hindus, the application form should be signed by the father or mother
of the Minor. In case of minors belonging to the Muslim Religion, only the father
should sign the application form as guardian
8. Can a POA holder sign the deposit
application form?
Yes. A copy of the Power of Attorney
to be obtained and filed.
9. What are the documents required
to invest in FD?
A valid Identity proof and address
proof is required.
10.Is there extra interest rate
for senior citizens?
Yes. 0.25% extra interest rate applicable
for senior citizens.
11. Can I have joint account/s?
Yes, maximum in the names of three
persons payable to "Anyone or Survivor" or "No.1 or Survivor". ANYONE OR SURVIVOR
(A OR S) - The deposit receipt can be discharged by Anyone of the depositors on
maturity. For premature payment & loan all the depositors signatures are required.
12. Can a Trust invest in FD?
A non charitable registered trust
can invest in FD
13. Can a company invest in FD?
Yes
14. Is there any brokerage/incentive
for deposits?
No
15. Do you offer monthly interest
on one/two year deposits?
No.Interest is payble on half yearly
basis
16. What are the modes by which
interest is paid?
Interest is directly credited to the
bank account via ECS
19. What is the Bank on which your
Interest Warrents are drawn?
HDFC Bank,Mumbai payable at Par at
all HDFC branches in India without any charges
20. Can you send the Interst warrents
favouring the second depositor?
No. Interest will be paid to the first
depositor only.
21. When will interest be credited
in non cumulative scheme?
Interest will be credited on 30th
Sep and 31st Mar of every Financial year during the FD tenure
22. What happens if the interest
rate comes down during currency?
No change since we are obliged to
pay the contracted rate till its maturity as per current rules.
23. What happens if the interest
rate goes up during currency?
It depends upon the Directives of
the Reserve Bank of India. If RBI is specific that the increase should bear prospective
effect from a particular time, it cannot be done automatically. The revised rates
will apply only to fresh deposits and renewals. However, the benefit of the revision
can be passed on to the existing depositors by a process of `Premature renewal'
subject to RBI rules.
24. What is the maximum number
of joint depositors?
Three
25. Will Income Tax be deducted
at source from interest?
It is obligatory on our part to deduct
income tax at source if the estimated annual interest paid/credited on a deposit
account exceeds Rs.5000. However, Non Assessees (individuals, HUF, Trust) can avoid
such deduction by furnishing a self-declaration in Form 15G/15H.
26. Can you open more than one
account in the same order of names?
No. All deposits held in the same
name, or in the same order of names (in case of joint deposits) are required to
be clubbed together for the purpose of calculation of income tax
27. What is Form 15G/15H - Where
do I get it from?
Form 15G/15H is a self declaration
by the depositor, which can be got from the company. It is a self declaration, which
needs no attestation by anybody except in case of Left Hand Thumb impression, which
needs to be attested by a Gazetted Officer/Bank Official. Since a copy has to be
retained in our files and one copy sent to IT dept. it is required to be furnished
in duplicate. We will send Form 15G/15H declaration in the month of March and the
depositor is required to return the same in duplicate duly completed and signed
by the first Depositor. Form 15G/15H is sent to the depositor on the basis of the
estimated interest payable for the full financial year and such estimation is calculated
as on 31st March. In Cumulative deposit the estimation will be on the assumption
that the deposit will be renewed for the entire maturity value on the due date in
the following year.
28. What is the difference between
form 15G and form 15H?
Form 15G is meant for Resident Individuals
who are of the age below 65 years. 15H is meant for Senior Citizens who are of the
age of 65 years or more during the financial year.
29. Is it not enough to furnish
the Form once at the time of placing the deposit?
No. Since there may be changes in
the Income Tax laws, the Form 15G/15H is required at the beginning of each financial
year or at the time of deposit, where applicable
30. What type of certificate do
you give for the Tax deducted at source?
A Consolidated Tax Deduction Certificate
at source in the prescribed Form 16A, giving details of the interest remitted to
Govt. etc. will be sent during second/third week of April every year
31. If Form 15H is furnished, will
there by any query from Income tax dept.?
Since, one copy of Form 15G/15H is
required to be sent to I.T.O. it is possible that the ITO may raise some query,
when they deem it necessary.
32. In case of salaried persons,
if Income Tax is deducted at source from salary, can he furnish Form 15G/15H?
No. Since he is an Assessee.
33. In case I need money urgently,
can I withdraw the deposit?
RBI directions prohibit us from allowing
withdrawal of deposits within 3 months from the date of deposit renewal.
34. Can I withdraw the deposit
after 3 months?
Yes- Premature withdrawal can be done
after 3 months from the date of deposit/renewal as per the Directions of Reserve
Bank of India and the terms and conditions of the Company in force from time to
time
35. Can you pay the premature proceeds
favouring the second/third depositor?
No. Premature payments will be made
to the first depositor only.
36. Will you pay back the deposit
in cash?
No
37. Can you send the payments direct
to my bank, under an advice to me?
Yes
38. Will you allow a loan on the
deposit?
As per RBI's directives, we are allowed
to grant loan upto 75% of the deposit amount after 3 months from the date of deposit.
39. What is the rate of interest
chargeable for loans?
2% over and above the contracted rate
of interest.
40. If the sole depositor dies,
what are the documents required ?
Attested copy of Death Certificate,
Term Deposit Receipt, Will or testamentary disposition, if any, or An attested copy
of Legal Heirship Certificate issued by a Tahsildar / Coporation
41. Do you accept NRI deposits
?
No
All communications with regard
to Fixed Deposit should be addressed to the Fixed Deposit Processing Center at the
address mentioned below:
FIXED DEPOSIT PROCESSING CENTRE
Mahindra & Mahindra Finance Ltd:
15, Arcot Street, Oppsite M.G.R. Memorial House, T. Nagar, Chennai-600017
Tel.: 044-24320911/044-24320711
Toll Free No.: 18002335678
Email : mfinfd@mahindra.com
NOTE:
This FAQ is only meant to clarify certain basic questions on Fixed Deposit
scheme. The information given is included only for general purpose and the depositors
should be aware that the relevant rules, regulations, or their interpretation might
change. We strongly advise depositors to contact our Call Centre/MAHINDRA FINANCE
COMPANY LIMITED branches/Registrar for any additional information/clarifications.
Please read the terms & conditions, Financial statements & Declarations available
on
www.icicidirect.com before investing
in MAHINDRA FINANCE COMPANY LIMITED FD. ICICI Securities Ltd. acts as a referral
agent to MAHINDRA FINANCE COMPANY LIMITED. and the offer is brought to you by MAHINDRA
FINANCE COMPANY LIMITED subject to fulfillment of eligibility criteria, terms and
conditions etc.