Investors looking for high fixed-income returns have a new opportunity with the latest Edelweiss Financial Services Ltd (EFSL) Secured NCD Issue, opening on 5 December 2025. Offering returns of up to 10.10% per annum, this NCD has become a point of interest among retail investors, especially at a time when fixed-income yields may move lower.
With the RBI expected to cut interest rates in the upcoming monetary policy, returns from traditional fixed-income instruments such as FDs, bonds, and debt funds may decline in the coming months.
👉 This makes the EFSL NCD issue a timely opportunity to lock in higher interest rates for the long term.
⭐ Key Highlights of Edelweiss Financial Services Ltd (EFSL) NCD – December 2025
| Parameter | Details |
|---|---|
| Issuer | Edelweiss Financial Services Ltd (EFSL) |
| Instrument Type | Secured Redeemable NCD |
| Issue Opens | 5 December 2025 |
| Issue Closes | 18 December 2025 (may close early or extend) |
| Interest Rates | 8.85% p.a. to 10.10% p.a. |
| Tenor Options | 24, 36, 60 & 120 months |
| Minimum Investment | ₹10,000 |
| Listing | BSE |
| Rating | CRISIL A+/Stable |
| Allotment Basis | First-Come-First-Serve (FCFS) |
| Issue Size | Base ₹125 Cr + Green Shoe ₹1,25 Cr = ₹250 Cr |
🔍 Why This NCD Issue Is Attractive Right Now (RBI Rate Cut Angle)
India’s inflation trend is easing, and several indicators suggest that the Reserve Bank of India may cut policy rates in the upcoming monetary policy meetings.
📉 What a rate cut means for fixed-income investors:
- Bank FD rates may get reduced
- Debt mutual fund yields may soften
- Corporate bond yields may fall
- New NCD issues may offer lower coupon rates
⭐ Why this EFSL NCD is timely:
By investing now, you can lock in interest rates up to 10.10% p.a. before the expected rate cuts bring down future returns across fixed-income products.
This is especially valuable for:
- Long-term investors
- Monthly income seekers
- Retirees
- Conservative investors looking for higher yields
In short:
👉 This NCD gives you a chance to capture today’s high rates before the potential rate-cut cycle begins.
📈 Interest Rates / Coupon Options (Up to 10.10% p.a.)
EFSL is offering 10 carefully structured NCD series, with both monthly and annual interest payout options.
Top Coupon Rate: 10.10% p.a. (120-month Annual Series)
Top Monthly Payout: Up to 9.85% p.a.
| Series | Tenor | Interest Frequency | Coupon Rate | Effective Yield |
|---|---|---|---|---|
| I | 24 months | Annual | 8.85% | 8.85% |
| II | 24 months Cum. | NA | Zero Coupon | 8.85% |
| III | 36 months | Monthly | 9.03% | 9.40% |
| IV | 36 months | Annual | 9.40% | 9.39% |
| V | 36 months Cum. | NA | Zero Coupon | 9.40% |
| VI | 60 months | Monthly | 9.44% | 9.86% |
| VII | 60 months | Annual | 9.85% | 9.84% |
| VIII | 60 months Cum. | NA | Zero Coupon | 9.85% |
| IX | 120 months | Monthly | 9.67% | 10.10% |
| X | 120 months | Annual | 10.10% | 10.09% |
🛡️ Security & Credit Rating
- These NCDs are secured with a charge over assets, covering principal + interest.
- Rated CRISIL A+/Stable, indicating an adequate degree of safety.
- Allotment and trading will be done only in demat form.
Note: A+ is a stable rating but not risk-free. Investors should review risk factors.
👥 Category-Wise Allocation (FCFS Basis)
| Category | Allocation | Investors Covered |
|---|---|---|
| Category I – QIB | 10% | Banks, MF, PF, Insurance |
| Category II – Corporates | 10% | Companies, LLPs, Trusts |
| Category III – HNI | 40% | > ₹10 lakh investment |
| Category IV – Retail | 40% | ₹10 lakh & below |
Retail investors get the largest share at 40% allocation.
🏢 About Edelweiss Financial Services Ltd
EFSL, part of the Edelweiss Group, operates across:
- Retail & Corporate Credit
- Mutual Funds & PMS
- Alternate Investments
- Insurance (Life + General)
- Investment Banking
- Asset Reconstruction
The company has been active in financial markets since 1995.
👍 Should You Invest? (Expert View)
✔ Advantages
- High coupon up to 10.10% p.a.
- Secured NCD
- Monthly payout options
- Good for passive income planning
- Chance to lock rates before RBI cuts interest rates
- Listed on BSE for liquidity
❗ Risks / Points to Note
- A+ rating = moderate risk
- Market risk if selling before maturity
- No put/call exit option
- Taxable as per your income tax slab
Ideal For:
- Investors seeking fixed, predictable returns
- Retirees & salaried individuals
- Conservative investors seeking higher-than-FD returns
- Long-term income seekers
⚠️ Disclaimer
This article is for informational purposes only. Investors should refer to the full Prospectus dated 27 November 2025 before investing. Fixed-income securities carry credit and market risk. Consult your financial advisor for personalized investment advice.
