Are secured bonds safe?

They are generally safer than unsecured bonds due to asset backing, but they are not risk-free.

What makes a bond “secured”?

A bond is secured when it is backed by specific assets of the issuer.

Do secured bonds give fixed returns?

Yes, most secured bonds offer fixed interest payouts.

Can I sell secured bonds before maturity?

Yes, if they are listed on exchanges, but liquidity may vary.

Who issues secured bonds in India?

NBFCs, housing finance companies, and corporates commonly issue secured bonds.

List of Secured bonds in India 2026

Name: Secured Bonds
Brand: Bonds
Rating: 4.8 (9622 reviews)

Secured bonds offer a structured way to invest in fixed-income instruments where the risk is partially managed through underlying collateral. These debt instruments focus on providing an additional safety cushion to investors while still delivering steady returns. This makes them a practical choice for those who want clarity on repayment backing and prefer investments that align with a relatively cautious approach to risk.

What are Secured Bonds?

Secured bonds are debt instruments backed by specific assets of the issuer, such as property, receivables, or other tangible assets. This means that if the issuer fails to repay, investors have a claim on these underlying assets.

Because of this backing, secured bonds are generally considered safer than unsecured bonds, especially from a credit risk perspective.

Key Features & Benefits of Secured Bonds

Asset-Backed Security: These bonds are supported by assets, which provides an added layer of protection to investors.

Lower Credit Risk: Compared to unsecured bonds, secured bonds carry relatively lower risk due to collateral backing.

Stable Returns: They offer fixed interest payouts, ensuring predictable income over the investment period.

Priority in Repayment: In case of default or liquidation, secured bondholders are given priority over unsecured creditors.

Suitable for Conservative Investors: They are ideal for investors looking for safer fixed-income options.

Available Across Issuers: Issued by NBFCs, housing finance companies, and corporates across different sectors.

List of Secured Bonds in India

COMPANY	ISIN	NAME OF THE INSTRUMENT	DATE OF ALLOTMENT	COUPON RATE	CREDIT RATING
REC LIMITED	INE020B07MY0	5% SECURED UNLISTED RATED REDEEMABLE NON CONVERTIBLE BONDS IN THE DEBENTURES.SERIES XVI 54EC.DATE OF MATURITY 31/12/2027	31 December 2022	8.50%	AAA INDIA RATING AND RESEARCH PVT. LTD DT 31-03-2022
NATIONAL HIGHWAYS AUTHORITY OF INDIA	INE906B07FU2	7.24% SECURED TAXABLE REDEEMABLE NON CONVERTIBLE BONDS IN THE NATURE OF DEBENTURES. TRANCHE II. DATE OF MATURITY 16/06/2047	16 June 2017	9.30%	AAA INDIA RATING AND RESEARCH PVT. LTD DT 31-05-2017
POWER GRID CORPORATION OF INDIA LIMITED	INE752E07JN1	9.25% Secured Non-Convertible, Non-Cumulative, Taxable Bond XXXVIII 2011-12. Letter of Allotment. Date of Maturity 09/03/2027	9 March 2012	8.15%	AAA CRISIL RATINGS LIMITED DT 19-05-2011
INDIAN RAILWAY FINANCE CORPORATION LIMITED	INE053F07AA7	7.49% SECURED TAXABLE REDEEMABLE NON CONVERTIBLE BONDS IN THE NATURE OF DEBENTURES. SERIES 120TH. LETTER OF ALLOTMENT. DATE OF MATURITY 30/05/2027	30 May 2017	8.15%	AAA CRISIL RATINGS LIMITED DT 23-05-2017
RURAL ELECTRIFICATION CORPORATION LIMITED	INE020B07KO5	5.25% SECURED REDEEMABLE NON CONVERTIBLE REC 54EC CAPITAL GAIN TAX EXEMPTION BONDS. SERIES XI. DATE OF MATURITY 31/10/2020	31 October 2017	8.50%	AAA INDIA RATING AND RESEARCH PVT. LTD DT 29-03-2017
INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED	INE787H07396	8.55% SECURED REDEEMABLE TAX FREE NON-CONVERTIBLE BONDS 2013-14. TRANCHE III. SERIES 2A. LETTER OF ALLOTMENT. DATE OF MATURITY 27/03/2029	27 March 2014	8.50%	AAA CARE RATINGS LIMITED DT 31-01-2014
RURAL ELECTRIFICATION CORPORATION LIMITED	INE020B07JG3	6% SECURED REDEEMABLE REC 54 EC CAPITAL GAINS TAX EXEMPTION NON CONVERTIBLE BONDS. SERIES X. DATE OF MATURITY 31/08/2018	31 August 2015	8.50%	AAA INDIA RATING AND RESEARCH PVT. LTD DT 06-04-2015
NATIONAL HOUSING BANK	INE557F07090	8.63% TAX FREE BONDS IN THE NATURE OF SECURED REDEEMABLE NON-CONVERTIBLE DEBENTURES . TRANCHE -I SERIES 2A. LETTER OF ALLOTMENT. DATE OF MATURITY 13/01/2029	13 January 2014	7.95%	AAA ICRA LIMITED DT 10-12-2013
REC LIMITED	INE020B07OB4	5.25% SECURED RATED UNLISTED REDEEMABLE NON-CONVERTIBLE BONDS IN THE NATURE OF DEBENTURES. SERIES XIX 54EC DATE OF MATURITY 31/03/2031.	31 March 2026	8.15%	AAA ICRA LIMITED DT 28-03-2025
RURAL ELECTRIFICATION CORPORATION LIMITED	INE020B07JZ3	6% SECURED REDEEMABLE NON CONVERTIBLE REC 54EC CAPITAL GAIN TAX EXEMPTION BONDS. SERIES X. DATE OF MATURITY 31/08/2019	31 August 2016	9.04%	AAA CRISIL RATINGS LIMITED DT 06-04-2015

Who Should Invest in Secured Bonds?

Conservative Investors: Those who prefer lower risk investments with asset backing.

Income-Seeking Investors: Individuals looking for regular and predictable interest income.

First-Time Bond Investors: Suitable for beginners who want exposure to bonds with relatively higher safety.

Portfolio Diversifiers: Investors who want to balance investments with stable fixed-income options.

Medium to Long-Term Investors: Best for those who can stay invested for a fixed tenure.

Risks Involved in Secured Bonds

Credit Risk: Even though bonds are secured, repayment depends on the issuer’s financial health.

Liquidity Risk: Some bonds may not be actively traded, making early exit difficult.

Interest Rate Risk: Bond prices may fall when market interest rates rise.

Collateral Risk: The value of underlying assets may decline, affecting recovery in case of default.

Inflation Risk: Fixed returns may not keep pace with rising inflation.

Tax Applicability on Secured Bonds

Tax on Interest Income: Interest earned is taxed under “Income from Other Sources” as per your income tax slab.

Short-Term Capital Gains (STCG): Taxed as per slab if sold within 12 months (for listed bonds)

Long-Term Capital Gains (LTCG): Taxed as per applicable rates after the holding period

TDS Applicability: TDS may be deducted if interest income exceeds prescribed limits.

Disclaimer

The Secured bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 22 February 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.

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