Differences between Manufacturing companies and Finance companies,
- 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.
- They can accept deposits for a Minimum Period of 6 Months and a Maximum of period of 36 Months.
- Interest will be paid on Monthly, Quarterly, Half-yearly, Annually & on Maturity. (cumulative).
- 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 are permitted to accept deposits based on their credit rating issued by any of the agencies like CARE, ICRA,CRISIL and FITCH.
- They can accept deposits for a minimum period of 12 months and a maximum period of 60 months.
- Interest will be paid on monthly, quarterly, half-yearly, Annually & on maturity. (cumulative).
- Deposits with highest /high rating companies are safe. They may offer an Interest rate between 9 % & 11%.
- Investors can avail a loan up to 75% of the amount invested and also allowed Premature withdrawal.