Investors searching for high-return fixed income investments in 2026 should closely evaluate the Muthoot Fincorp Limited Tranche I Secured NCD Issue. Offering returns up to 9.10% per annum, this public issue stands out as a strong alternative to traditional bank fixed deposits.
Backed by an AA-rated NBFC, these NCDs provide regular income, capital protection through security, and listing on BSE for liquidity.
Muthoot Fincorp NCD 2026 – Key Details
| Particulars | Details |
|---|---|
| Issuer | Muthoot Fincorp Limited |
| Issue Type | Secured Redeemable Non-Convertible Debentures |
| Issue Opening Date | 3 February 2026 |
| Issue Closing Date | 16 February 2026 (may close early) |
| Face Value | ₹1,000 per NCD |
| Minimum Investment | ₹10,000 |
| Listing | BSE |
| Allotment | First-Come-First-Serve |
| Credit Rating | CRISIL AA- (Positive), BWR AA (Stable) |
Muthoot Fincorp NCD Interest Rates & Yield 2026
This issue offers monthly, annual, and cumulative interest options across multiple tenures.
🔹 Effective Yield (Per Annum)
- 24 Months: up to 8.70%
- 36 Months: up to 8.85%
- 60 Months: up to 9.00%
- 72 Months: up to 9.10%
🔹 Interest Payment Options
- Monthly income (ideal for retirees)
- Annual income
- Cumulative option (best for long-term wealth creation)
Example (Cumulative – 72 months):
₹1,000 invested becomes approximately ₹1,686.76 at maturity.
Is Muthoot Fincorp NCD Safe?
✔ Credit Rating Strength
- CRISIL AA- / Positive Outlook
- Brickwork AA / Stable
AA-rated NCDs indicate high safety with low credit risk, though they are not completely risk-free.
✔ Secured Instrument
- Backed by a charge on loan receivables and current assets
- Senior claim compared to unsecured creditors
About Muthoot Fincorp Limited
Muthoot Fincorp is a RBI-registered NBFC and a leading player in the gold loan segment in India.
- Over 20+ years of operating history
- Strong rural & semi-urban customer base
- Core focus on gold loans and small business financing
- Well-diversified product portfolio
Who Should Invest in Muthoot Fincorp NCD?
This NCD is suitable for:
- Conservative investors seeking higher returns than FDs
- Retirees looking for monthly income
- HNI investors planning stable long-term allocation
- Investors diversifying beyond mutual funds and equity
❌ Not suitable for:
- Investors seeking capital appreciation
- NRIs & foreign investors (not eligible)
Taxation on Muthoot Fincorp NCD
- Interest income is taxable as per income-tax slab
- TDS applicable as per Income Tax Act
- Capital gains tax applies if sold on BSE before maturity
Advantages of Muthoot Fincorp NCD 2026
✅ Higher interest than bank FD
✅ Multiple payout options
✅ Secured NCD
✅ Strong credit rating
✅ Listed on BSE (liquidity option)
✅ Suitable for income-focused portfolios
Key Risks You Must Consider
⚠ Credit risk of NBFC
⚠ Interest rate risk if exited early
⚠ Market liquidity risk on stock exchange
⚠ Tax impact on post-tax returns
Should You Invest in Muthoot Fincorp NCD February 2026?
The Muthoot Fincorp NCD 2026 offers an attractive combination of high yield, security, and flexibility. For investors looking to lock in stable returns in a volatile market, this NCD can be a valuable addition to a fixed-income portfolio, provided risk factors are clearly understood.
Frequently Asked Questions (FAQs)
Q1. What is the highest interest rate in Muthoot Fincorp NCD 2026?
Up to 9.10% per annum, depending on tenure and option selected.
Q2. Is Muthoot Fincorp NCD better than FD?
Returns are higher than most bank FDs, but NCDs carry higher risk compared to bank deposits.
Q3. Can I sell this NCD before maturity?
Yes, it is listed on BSE, but liquidity depends on market demand.
⚠️ Risk Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investments in NCDs are subject to credit, market, and interest rate risks. Please read the Shelf Prospectus and Tranche I Prospectus dated January 29, 2026, including risk factors, carefully before investing. Past performance does not guarantee future returns.
