HDFC Ltd, the country’s largest mortgage lender, launched “green and sustainable” deposits with the goal of protecting the environment from climate change Programme for retail clients on 16th August 2021, with monies going toward financing sustainable housing credit solutions and services.
Individuals may receive 6.55 percent interest on deposits for periods ranging from 3 to 10 years; according to a statement from HDFC Ltd. Senior citizens would now be entitled for an extra 0.25 percent each year on deposits up to Rs 2 crore. Furthermore, if the deposits are made using the company's online platform, an additional interest rate of 0.1 percent per annum would be applied to these deposits up to Rs 50 lakh. On standard deposits, HDFC Ltd typically pays 6.65 percent interest. People who choose “green and sustainable” deposits would receive a 10 basis point lower rate of return on their savings, equating to Rs 100 on an Rs.1 lakh deposit. On standard deposits, HDFC Ltd typically pays 6.65 percent interest. People who choose “green and sustainable” deposits would receive a 10 basis point lower rate of return on their savings, equating to Rs 100 on an Rs. 1 lakh deposit.
“Though we do not have a target in mind,” said Renu Karnad, managing director of HDFC Ltd, “even if we raise a fraction of what we have been raising via our normal retail deposits, it can translate into a decent amount.” “The broader aim is to give another product to environmentally aware consumers who want to contribute to a better environment and are seeking for a trustworthy platform that will enable them to contribute to this cause at a very low cost and with the least amount of effort,” she added.
Shriram City Union Finance, according to Bankbazaar.com, offers one of the highest interest rates on fixed deposits, ranging from 7.25-9.73 percent for terms ranging from 1 to 5 years for deposits less than Rs 2 crore, followed by PNB Housing Finance (5.9-6.7 percent), and ICICI Home Finance (5.9-6.7 percent) (5.7-6.7 per cent). According to Deepak Parekh, chairman of HDFC Ltd, the firm expected rising demand for green solutions and has so created a green and sustainable deposits option for clients, allowing them to increase their wealth while helping to meet the requirements of a changing world.
Prior to HDFC Ltd, HSBC India had introduced a corporate green deposit scheme. The bank stated that the funding from this Programme will be used to finance green projects such as renewable energy, clean transportation, pollution prevention and control, green building, sustainable water, wastewater management, and other green efforts. The firm has secured a $250 million loan from the International Finance Corporation (IFC), the World Bank Group's investment arm, which will be used to expand green affordable home finance in India. As a consequence of this investment from IFC, low and middle-income borrowers would have greater access to finances for affordable housing, as at least 25% of the funding has been designated for green affordable housing, according to the firm.
HDFC is committed to supporting India's efforts for a sustainable and green low-carbon economy. HDFC anticipates growing demand for green solutions and has launched green and sustainable deposits offering for our customers who can grow their wealth while contributing to serve the needs of a changing world.
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