Why You Should Check CRISIL Rating Before Making an Investment?

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Why You Should Check CRISIL Rating Before Making an Investment? The economic of any country prevails and grows due to the flow of money that is fueled by investments. By investing in debt instruments and companies, investors and the general public keep the economy running towards growth. However, before in investment is made, if there is a way to determine the safety of your investment and the probability of its returns, it would be really helpful in terms of investor safety as well as economic growth. Credit rating agencies are the entities that provide accurate data regarding the creditworthiness of the company/issuing company of the debt instrument.

About CRISIL

CRISIL is one of the first credit rating agencies established in India during the year 1987. Majority of the company is owned by Standard & Poor which are one of the biggest and most respectable credit rating firms at a global level. CRISIL serves the country’s SMEs, MSMEs, large corporates, financial institutes, investors, as well as government departments and policy makers. By providing accurate reports and credit ratings, it encourages the aspect of transparency and smart investing in the economic system. It not only evaluates companies but also the debt instruments issued by banks and NBFCs such as fixed deposits, mutual funds, and insurance schemes.

Rating Scale of CRISIL

While CRISIL rates different types of instruments, lets understand the rating scale by looking at how it rates fixed deposits issued by NBFCs:

Rating Scale Implication
FD, FC- to FC+ If the rating of FDs is in this range, it implies that getting returns is highly unlikely
FB- to FB+ This range indicates that you can expect a moderate level of risk if you invest in the FD
FA- to FA You can certainly invest in the FD, and there is a moderate to low level of risk involved
FAA- to FAA+, FAAA These ratings indicate that you can get assured returns by investing in the FD

 

How CRISIL Ratings Benefit NBFCs

NBFCs such as Bajaj Finance provide loans and debt instruments such as fixed deposits for short term as well as long-term. Credit rating agencies such as CRISIL assess the financial history, debt repayment profile, and liquidity to determine the rate of probability that an investor will get their returns for investment. Furthermore, CRISIL examines NBFCs more stringently than banks as NBFCs do not have external liquidity support. However, if an NBFC still rates high on the CRISIL rating scale for their FDs, it suggests that their financial condition is robust and the investors will get assured returns.

FDs by Bajaj Finance Hold the Highest Rating by CRISIL

Bajaj Finance is an NBFC providing fixed deposits which are rated FAAA by CRISIL, their highest rating, which suggests a guarantee of assured returns. Bajaj Finance offers FDs at an interest rate of 8.75%, which can go up to 9.1% for senior citizens. Furthermore, Bajaj Finance provides FDs with flexible tenors and you can begin investing with an amount of INR 25,000 as well. And in order to get the most benefit out of your FD investment, you can ladder your investments and always have access to emergency funds. By checking the credit rating by CRISIL, you as an investor can make an informed decision and plan your major expenses according to it. Moreover, some of the added benefits of investing in FD with Bajaj Finance:

  • Quick application procedure with online application form and minimal documentation.
  • Guaranteed returns with highest credit rating from CRISIL (FAAA) as well as ICRA (MAAA)
  • No influence of market rate fluctuations on the Fixed Deposit interest rates and the maturity amount.
  • Option to take loan against FD in case of emergencies wherein you can use up to 90% of the accrued sum.
  • Premature withdrawal can be done anytime during the tenor. However, you might need to pay a penalty charge for the same.
  • 35% increased FD interest rates for senior citizen applicants.
  • Flexible tenor from 12 months to 60 months.
  • Choice between cumulative and non-cumulative FD deciding the frequency of interest payout.
  • Facility to open multiple FDs with different tenors at the same time and maintain liquidity from the investments.
  • 24/7 online as well as offline customer support for quick guidance.

Easy accessibility to the company with over 200 branches spread across 200+ cities of India.

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