Muthoot Finance Muthoot Finance is one of the largest gold loan finance Companies. It started its business in 2001 after getting registration from RBI as NBFC and currently it has network of around 3870 branches in all over India.

Muthoot finance has come up with NCD (Non-convertible debentures) which offers around 13-13.25% interest rate in 2, 3, 5 years tenors. It provides a facility in which your money gets double in 66 months which offers a pre-tax yield of 13.46%. NCD are very similar to Fixed Deposit, but they are occasional only, while deposits are ongoing. One can buy these bonds from secondary markets also though their demat account if yields are favorable.  NCD after coming in the market stays for a limited period of time after which registration for those bonds are cancelled. So if someone fails to register within stipulated time, they have to wait till the company issue other bonds.

Muthoot Finance 2013 Interest Rates on FD

  • 13 to 13.25 % interest rates on FD for a period of 2, 3 & 5 years
  • Double Money in 66 months

Features of Muthoot finance NCD

  • NCDs are available only in dematerialized form; one can buy it individually or jointly.
  • Four maturity periods are available for NCDs: two years, three years, five years and five and half years.
  • For NCD having maturity period 5 and half years the payment option is cumulative while for other three interest rate is compounded annually.
  • NCD would be listed in BSE only.
  • It doesn’t have put or call options.
  • Minimum Investment required for NCD is Rs. 5000. The amount has been kept low to attract or encourage retail investors.


  1. The savings in NCD is do not entitled you any tax benefits and the interest earned on the investment are also not tax exempt means they are also tax deductible.
  2. Any minor can also apply for these NCDs
  3. One may apply for the joint name. However, in this case the demat account should also possess the same joint name. In case of joint name interest will be liable to the first holder of the account.
  4. NRIs are not liable for NCD investment.


The issue in Muthoot finance NCD enjoys credit rating of AA- from ICRA and CRISIL, which justifies that the investment pays a good return because of its high risk factor.