Muthoot Fincorp Limited is one of India's largest non-banking financial companies (NBFCs) and part of the Muthoot Pappachan Group. They have provided several opportunities to generate reasonable fixed-income investments through their Non-Convertible Debenture (or “NCD”) offerings for their investors over time. The nature of Muthoot Fincorp Limited’s NCDs (that they are secured debt instruments) enables an investor to receive stable returns and have flexible time periods on their investments with predictable cash flow.
In this blog, we will explore everything about Muthoot Fincorp Limited NCD, including key features, interest rates, benefits, risks, and who should invest.
What are Muthoot Fincorp Limited NCDs?
Companies use non-convertible debt instruments (NCD) as a source of financing for themselves, providing a fixed income stream without the ability to convert into equity shares of the issuing company.
Muthoot Fincorp has NCDs available that have collateral backing through their company's property and will return the principal amount to investors when the bond reaches the end of its designated maturity date.
Muthoot Fincorp Limited NCD – Key Highlights
Here’s a snapshot of the latest public issue details:
| Feature |
Details |
| Issuer |
Muthoot Fincorp Limited |
| Instrument Type |
Secured Redeemable NCD |
| Credit Rating |
Crisil AA-/Positive, BWR AA/Stable |
| Issue Opens |
03 February, 2026 |
| Issue Closes |
16 February, 2026* |
| Minimum Investment |
Rs.10,000 |
| Effective Yield |
Upto 9.10%* |
| Tenor |
24 Months, 36 Months, 60 Months, 72 Months |
| Face Value |
Rs.1000 per NCD |
Benefits of Muthoot Fincorp NCDs
1. Attractive Returns
Muthoot Fincorp’s non-convertible debentures (NCDs) generate higher returns for conservative investors compared to other forms of deposit or savings investment with banks.
2. Secured Investment
Investors are provided with an extra layer of protection because the investment in NCDs is backed by property and assets.
3. Strong Credit Rating
A Crisil AA-/Positive, BWR AA/Stable rated NCD is considered to be a very high-quality credit risk compared to many other forms of debt with a lower likelihood of default.
4. Flexible Tenure Options
The range of maturities (24 months to 72 months) offered by Muthoot Fincorp’s non-convertible debentures provides investors with the flexibility to select an investment period that best meets their own specific needs.
5. Regular Income
Muthoot Fincorp’s non-convertible debentures pay interest either every month or once a year, thus providing investors with a reliable source of income.
Who Should Invest in Muthoot Fincorp NCD?
Muthoot Fincorp NCDs have the potential to be the right fit for:
- Conservative investors searching for stable investment returns
- Senior citizens needing to establish a reliable source of ongoing income
- Individuals wanting to diversify their portfolios with fixed-income investments
- Those who prefer a guaranteed level of cash flow from their investment.
How to Apply for Muthoot Fincorp NCD?
Registration with the Muthoot Fincorp NCD is also entirely online and hassle-free. Here are the steps involved:
1. Visit the Application Page
Go to the official RR Finance NCD page - Muthoot Fincorp Limited NCD
2. Enter Your Basic Details
Fill in your name, mobile number, and PAN number carefully.
3. Verify and Confirm
Select the NCD Re-check your details before proceeding to payment.
4. Pay Securely via UPI Modes
Complete your investment using UPI or other available online payment modes.
5. Allotment and Confirmation
Once processed, you will receive the NCD units directly in your Demat account.
Conclusion
NCDs of Muthoot Fincorp Ltd. provide investors with a balanced approach to risk and reward as well as flexibility in terms of interest rates. Investors may want to consider Muthoot Fincorp Ltd.'s strong credit rating, secure structure, and multiple interest payment options when building their fixed income portfolio.
Before investing in Muthoot Fincorp Ltd.'s NCDs, investors must assess their risk tolerance, taxes, and individual financial goals.
Disclaimer:Please read the offer documents & prospectus carefully before investing.
Frequently Asked Questions (FAQs)
Muthoot Fincorp NCDs are secured debt instruments and carry a strong credit rating (Crisil AA-/Positive, BWR AA/Stable), which indicates relatively low credit risk. However, like all corporate bonds, they are subject to market and issuer risks, so investors should evaluate their risk appetite before investing.
The minimum investment in Muthoot Fincorp NCD is ₹10,000, with a face value of ₹1,000 per NCD. Investors can apply for multiple NCDs based on their investment capacity and financial goals.
Interest earned from Muthoot Fincorp NCDs is taxable under the head “Income from Other Sources” and is taxed according to the investor’s applicable income tax slab. Capital gains tax may apply if NCDs are sold before maturity on the stock exchange.
Yes, Muthoot Fincorp NCDs are usually listed on stock exchanges, which allows investors to sell them before maturity. However, liquidity may vary, and the selling price can fluctuate depending on market conditions and interest rates.
Unlike bank fixed deposits, Muthoot Fincorp NCDs generally offer higher interest rates and multiple payout options but come with slightly higher risk. Bank FDs are safer due to deposit insurance, while NCDs provide better returns with moderate risk.