Investors looking for fixed-income investment opportunities with higher returns than traditional bank fixed deposits often consider Non-Convertible Debentures (NCDs). One such opportunity is the Muthoot Fincorp NCD Tranche II March 2026 issue, which has attracted attention due to its relatively attractive interest rates and strong credit rating.
In this article, we explain the key details of the Muthoot Fincorp NCD Tranche II issue, interest rates, tenure options, benefits, risks, and how investors can apply.
About Muthoot Fincorp Limited
Muthoot Fincorp Limited is a Non-Banking Financial Company (NBFC) primarily engaged in providing gold loans and financial services. The company operates thousands of branches across India and serves millions of customers.
Apart from gold loans, the company also provides services such as:
- Foreign exchange services
- Money transfer services
- Microfinance and lending
- Real estate and renewable energy investments
As of recent reports, the company has over 3,700 branches across India, making it one of the prominent NBFCs in the gold-loan segment.
Muthoot Fincorp NCD Tranche II March 2026 – Key Highlights
Here are the important details of the NCD issue:
- Issuer: Muthoot Fincorp Limited
- Instrument Type: Secured, Redeemable Non-Convertible Debentures
- Open Date :- 13th March 2026
- Closing Date :- 23rd March 2026
- Issue Size base: ₹200 crore
- Effective Yield :- 9.10 %(Series 4)
- Issue Size oversubscription : ₹400 crore
- Face Value: ₹1,000 per NCD
- Minimum Investment: ₹10,000 (10 NCDs)
- Listing: BSE debt market segment
- Credit Rating: CRISIL AA- (Positive) and Brickwork AA (Stable)
- Tenure Options: 24, 36, 60 and 72 months
A AA rated NCD indicates a high degree of safety regarding timely repayment of principal and interest.
Interest Rates and Tenure Options
The issue offers multiple investment options with different interest payout frequencies such as monthly, annual, and cumulative options.
Typical interest structure includes:
NCD Coupon Rates
|
|
Series 1 |
Series 2 |
Series 3 |
Series 4 |
Series 5 |
Series 6 |
|
Frequency of Interest Payment |
Monthly |
Monthly |
Monthly |
Monthly |
Annual |
Annual |
|
Nature |
Secured |
Secured |
Secured |
Secured |
Secured |
Secured |
|
Tenor |
24 Months |
36 Months |
60 Months |
72 Months |
24 Months |
36 Months |
|
Coupon (% per Annum) |
8.37% |
8.52% |
8.65% |
8.75% |
8.70% |
8.85% |
|
Effective Yield (% per Annum) |
8.70% |
8.85% |
9.00% |
9.10% |
8.69% |
8.84% |
|
Amount on Maturity (In Rs.) |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
|
|
|
|
|
|
|
|
|
Frequency of Interest Payment |
Series 7 |
Series 8 |
Series 9 |
Series 10 |
Series 11 |
Series 12 |
|
Nature |
Annual |
Annual |
Cumulative |
Cumulative |
Cumulative |
Cumulative |
|
Tenor |
60 Months |
72 Months |
24 Months |
36 Months |
60 Months |
72 Months |
|
Coupon (% per Annum) |
9.00% |
9.10% |
NA |
NA |
NA |
NA |
|
Effective Yield (% per Annum) |
8.99% |
9.09% |
8.70% |
8.85% |
9.00% |
9.10% |
|
Amount on Maturity (In Rs.) |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,181.84 |
Rs 1,289.99 |
Rs 1,538.99 |
Rs 1,687.16 |
The variety of options allows investors to choose between regular income or long-term cumulative returns.
Objectives of the Issue
The funds raised through the NCD issue will be used for:
- Lending activities
- Repayment of existing borrowings
- Business expansion
- General corporate purposes
Such funding helps the company expand its financial services operations.
