List of NBFC Bonds in India 2026

Non-Banking Financial Company (NBFC) bonds have emerged as a popular fixed-income investment option for individuals seeking predictable returns beyond traditional bank deposits. With a range of options available in 2026, NBFC bonds offer structured returns, periodic income choices, and credit rating transparency to help investors make informed decisions. Continue reading to learn more about NBFC bonds with a detailed list.

What are NBFC Bonds?

NBFC bonds are the debt instruments that are issued by the non-banking financial companies. They issue these bonds to raise funds from investors. When an investor invests in such bonds they lend money to the NBFC for a fixed time period in exchange for interest payments. These bonds offer fixed return for a fixed maturity period which is predetermined.

Key Features & Benefits of NBFC Bonds

Here are some of the key features and benefits of NBFC Bonds-

Fixed Interest Returns: NBFC bonds generally offer fixed interest rates, allowing investors to earn predictable income over the investment period.

Defined Tenure: These bonds come with a fixed maturity period ranging from a few months to several years depending on the issuer and bond type.

Regular Income Option: Many NBFC bonds provide periodic interest payouts, such as monthly, quarterly, or annual payments It makes these bonds suitable for investors looking for regular income.

Portfolio Diversification: Adding NBFC bonds to an investment portfolio can help diversify risk, especially when combined with other asset classes like equities or mutual funds.

Credit Rating Transparency: Most NBFC bonds are assigned credit ratings by agencies such as CRISIL, ICRA, or CARE, which helps investors evaluate the creditworthiness of the issuer.

Long-Term Planning: NBFC bonds can be used by investors planning for long-term financial goals, as they provide structured returns and defined maturity timelines.

List of NBFC Bonds In India

Who Should Invest in NBFC Bonds?

NBFC bonds may be suitable for investors who are looking for fixed-income investment options and predictable returns. They can fit well into a diversified portfolio, especially for those who prefer relatively stable returns over market-linked investments.

Conservative Investors: Investors who prefer stable and fixed returns instead of highly volatile investments may consider NBFC bonds as part of their portfolio.

Investors Seeking Regular Income: Individuals who want periodic interest payouts such as monthly, quarterly, or annual income may find NBFC bonds useful for meeting regular financial needs.

Long-Term Investors: Those planning for long-term financial goals, such as retirement or future expenses, may consider NBFC bonds due to their fixed tenure and structured returns.

Portfolio Diversification: Investors who want to diversify their investments beyond traditional instruments like fixed deposits or equities may add NBFC bonds to balance their portfolio.

Risks Involved in NBFC bonds

While NBFC bonds can offer fixed returns and portfolio diversification, they also carry certain risks that investors should consider before investing.

Credit Risk: NBFC bonds depend on the financial strength of the issuing company. If the NBFC faces financial difficulties or defaults, investors may face delays or losses in receiving interest or principal.

Liquidity Risk: Some NBFC bonds may not be actively traded in the secondary market. This can make it difficult for investors to sell the bond before maturity without accepting a lower price.

Interest Rate Risk: If market interest rates increase after you invest, newly issued bonds may offer higher returns. This can reduce the market value of existing NBFC bonds if you try to sell them early.

Regulatory Risk: NBFCs operate under regulations set by the Reserve Bank of India (RBI). Changes in regulatory policies or financial sector rules can impact the operations and financial performance of NBFCs.

Inflation Risk: Fixed returns from NBFC bonds may lose purchasing power over time if inflation rises significantly, reducing the real value of the returns.

Default Risk: Although many NBFCs maintain strong credit ratings, there is still a possibility that the issuer may fail to meet its repayment obligations.

Tax Applicability on NBFC Bonds

The taxation of NBFC bonds in India depends on how the returns are received and the duration for which the bonds are held. Investors should understand these tax implications before investing.

Interest earned from NBFC bonds is treated as income from other sources and is taxed according to the investor’s applicable income tax slab. If the interest exceeds the prescribed limit, the issuer may deduct TDS (Tax Deducted at Source) as per prevailing tax rules.

In case of listed bonds, any period above 12 months is long-term and below that short-term. In case of unlisted bonds, the period is 36 months.

LTCG is taxed at 10% (if listed) without indexation benefit and 20% (if unlisted) without indexation benefit.

Disclaimer

The NBFC bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 11 March 2026. Prices, yields, trade values, and other related details are subject to change in real time depending on market movements and liquidity. This content is intended solely for informational and educational purposes and should not be considered as investment advice, recommendation, or an offer to buy or sell any securities.