Non Convertible Debentures (NCDs) are one of the most popular fixed-income investment options in India for 2025. They are issued by reputed companies to raise long-term capital, generally offer higher interest (8%–10%) compared to bank Fixed Deposits (FDs) which give only 4%–7%, and provide regular interest payouts (monthly, quarterly, yearly, or at maturity). NCDs are rated by credit rating agencies like CRISIL, CARE, or ICRA, making them safer than many other market products. With a minimum investment starting at ₹10,000 and easy tradability on BSE/NSE, NCD investment is considered a must-try, low-risk yet high-return opportunity. This is why, in 2025, thousands of investors are shifting from FDs to NCDs for better income stability and portfolio growth.
NCD Full Form and Meaning – What Is an NCD?
The NCD full form is Non Convertible Debenture. Simply put, it is like giving a loan to a company. You invest money for a fixed time period, the company pays you interest at a pre-decided rate, and at maturity, you get your principal amount back.
- Non-Convertible means you cannot convert these debentures into company shares later.
- Instead, you get guaranteed fixed returns – just like an FD but with higher income.
So, if you are wondering, “What is NCD investment all about?” — it is all about security, steady returns, and reliable cash flow.
Key Features of Non Convertible Debentures
To make it easy, let’s break down the important features of NCD investment:
- Higher Interest Rates – 8%–10% in 2025 compared to 4%–7% in FDs.
- Secured & Unsecured Options – Secured NCDs are backed by company assets, making them safer.
- Credit Ratings Are Mandatory – You can check “what is the rating given to our NCD?” directly on CRISIL, ICRA, or CARE websites.
- Regular Payouts – Monthly, quarterly, annually, or at maturity – you choose.
- Tradable in Stock Market – Unlike FDs, NCDs can be bought/sold on NSE or BSE.
- Low Minimum Investment – Usually starts at ₹10,000 (10 debentures).
Types of NCDs – Which One Should You Choose?
- Secured NCDs – Backed by company assets, lower risk, slightly lower interest.
- Unsecured NCDs – No collateral, slightly higher interest, but higher risk.
Capital Gurukul teaches you which type of NCD investment is best for your profile – making sure you balance safety and returns.
NCD vs FD – Why Investors Are Switching?
A lot of people ask, “NCD vs FD – which is better in 2025?”
Here’s a quick comparison:
| Feature | NCDs | FDs |
|---|---|---|
| Interest Rate | 8–10% | 4–7% |
| Liquidity | Can trade on NSE/BSE | Premature withdrawal with penalty |
| Safety | Secured/Unsecured, needs rating | Bank regulated & insured up to ₹5 lakh |
| Credit Rating | Mandatory | Not required |
| Tax Treatment | No TDS in demat form | Fully taxable |
👉 Clearly, NCD investment has great advantages of high degree of return and low credit risk compared to FDs.
Credit Ratings of NCDs – What Is the Rating Given to Our NCD?
Before investing in NCD, always check its rating. Ratings are given by:
- CRISIL
- CARE
- ICRA
If you’re asking, “What is the rating given to our NCD?” — a higher rating like AAA means safer investment. Lower ratings mean higher risk. At Capital Gurukul, we not only show you how to check ratings but also explain what they mean in simple, practical terms.
Why Investing in NCD Is a Must Try in 2025
- Best for steady income without stock market volatility.
- Diversification – balances your portfolio between equity, mutual funds, and fixed income.
- Regular income flow – ideal for salaried people, retired professionals, and business owners.
- Transparency in risks – ratings make it easy to judge safety.
- Must-know fact – Many top companies in 2025 are offering NCDs with yields up to 9.90%.
Latest Updates on NCD Investment in India
- New NCD issues in 2025 are offering 8.5%–9.90% returns.
- Most of them are rated AA or above, ensuring reliability.
- Applications are open via ASBA, UPI, and brokers.
- Allotments are on first-come-first-serve basis.
So, whether you are a beginner or an experienced investor, investing in NCD is one of the best financial decisions in 2025.
Capital Gurukul – Your Superior Guide for NCD Investment
At Capital Gurukul, we are not just another finance platform. We make sure you don’t lose money by blindly following others. Our teaching is superior because:
- We explain complex finance in easy language.
- We provide real-time updates on NCD issues, ratings, and yields.
- We guide you on how, when, and where to invest.
- We help you learn finance properly so you can even become a sub-broker and build your own business.
💡 Remember – if you don’t learn trading and finance from us, you are at a higher risk of making losses in the future.
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