New Delhi. In spite of strong investment options such as mutual funds and the stock market, there is a large population in India that prefers FD (fixed deposits). Actually FD is simple funda, wait after investment and your money will keep increasing. Whereas in the stock market or mutual funds, you have to keep checking from time to time. The second thing is security. FD is a safe option compared to mutual funds or the stock market. Let us tell you that in the year 2020, FD interest rates fell significantly. In such a situation, it is difficult to get more than 7-8% interest on FD. But there is still an option where you can get interest up to 9.95%. Let’s know about this option.
Invest here
In a year in which there has been a steep fall in interest rates, getting 9.95 percent interest on investment is a big deal. If you want such a high interest rate, then tell us to invest in Edelweiss Financial Services debentures. This company has launched non-convertible debentures (NCDs). The company wants to raise Rs 200 crore from these NCDs. The point of your work is that there will be 9.95% interest on the investment here.
This option is safe
NCD of Edelweiss Financial Services is rated ‘A Plus’ by rating agency Care. A plus rating means that these NCDs are quite safe. Keep in mind that the company will be given these debentures on a first come first served basis. The face value of these NCDs has been kept at Rs 1000. Although the company’s target is to raise Rs 100 crore, but if there are more applications, it can issue NCDs up to Rs 200 crore.
How and how much interest will be received
There are a total of 3 rates of interest on these NCDs. The maximum interest rate is 9.95 percent. If you invest for 3 years, you will get 9.35% interest. At the same time, you will get 9.80 percent for investing for a period of 5 years and 9.95 percent for investing for a maximum period of 10 years. It will pay its loan and its interest from 75% of the money that the company will raise from the NCD.
Will get additional benefit
The company will also provide additional benefits to NCD investors. Edelweiss has announced that an additional incentive of 0.20 per cent per annum will also be given to all categories of investors. It is known that Edelweiss Financial Services is a subsidiary of Edelweiss Housing Finance. The company will list the NCDs to be issued on the BSE. This will provide good liquidity to the investors.
What are debentures
Non-convertible debenture (NCD) is a financial instrument that is used by companies to raise money for a long period. This is done through a public issue. The NCD has a fixed-term debt instrument, on which investors are paid a fixed interest rate. In simple words, it is a loan that the company takes from common investors and pays them interest.
