IIFL Home Finance is coming up with a new secure ncd issue that opens on April 7, 2025. Investors looking for fixed income options may be tempted by the attractive rates up to 10.25% annum. But is this NCD a Good Bet Considering The Current Market and Credit Risk Environment? In this article, we’ll review Iifl Home Finance April 2025 NCD Issue In Detail – Covering Its Features, Interest Rates, Risk Factors, and Whtherra you should invest or avoid.
About Iifl Home Finance Limited
Establed in 2006, IIFL Home Finance is a Subsidiya of IIFL Finance Limited and Focuses on Providing Affordable Home Loans to first-time buyers. The company aims to serve the lower and middele-insium segments, especially in tier II and III Cities.
It offers Home Loans, Secure MSME Loans, and Loans Against Property. The company has a strong nationwide presence with over 125 Branches and Enjoys Support from Marquee Investors Like Abu Dhabi Investment Authority (ADIA) and CDC Group (UK GOVERNMENT ‘ Finance institution).
Iifl Home Finance NCD – April 2025 Issue Details
- Ncd issue opens: April 7, 2025
- Ncd issue closes: April 23, 2025
- Security type: Secure, redeemable non-convertible debentures (NCDs)
- Face value / issue price: ₹ 1,000 per NCD
- Base issue size: ₹ 100 Croes
- Option to retain oversubscription: ₹ 400 Croes
- Listing: Proposed on bse and nse
- Allotment Basis: First come first serve
- Minimum investment: 10 ncds ₹ 10,000
- Registrar: Kfin Technologies Ltd
- Debenture trustee: Vardhman Trusteeship Pvt Ltd
IIFL Home Finance NCD – Interest Rates for April 2025 Tranche
These NCDs Offer Multiple Options with Tenures of 15, 24, 36, and 60 Months. Interest Payment Modes Include Monthly, Annual, and Cumulative.
| Series | Tenure | Interest frequency | Coupon rate | Effective yield | Maturity Amount (₹) |
|---|---|---|---|---|---|
| I | 15 months | Annual | 9.00% | 9.06% | ₹ 1,000 |
| II | 15 months | Cumulative | Na | 9.00% | ₹ 1,113.67 |
| III | 24 months | Annual | 9.30% | 9.30% | ₹ 1,000 |
| Iv | 24 months | Cumulative | Na | 9.30% | ₹ 1,194.65 |
| V | 36 months | Monthly | 9.35% | 9.76% | ₹ 1,000 |
| Vi | 36 months | Annual | 9.75% | 9.74% | ₹ 1,000 |
| Vii | 36 months | Cumulative | Na | 9.75% | ₹ 1,322.28 |
| Viiii | 60 months | Monthly | 9.60% | 10.03% | ₹ 1,000 |
| Ix | 60 months | Annual | 10.25% | 10.24% | ₹ 1,000 |
Credit Rating of the NCDs
These ncds have received Crisil AA/Stable from Crisil and ICRA AA (Stable) from ICRA. Instruments with this rating are considered to have a high degree of safety with very low credit risk.
Objects of the NCD Issue
The company proposes to utilize the net proceeds from this issue for:
- Onward lending, finance, and repayment of existing borrowings; and
- General corporate purposes.
Why to invest in Iifl Home Finance NCD April 2025?
- Attractive Interest Rates – Offering up to 10.25% PA, these ncds provide significantly better returns compared to bank fds.
- Secured instruments – These are secured debentures Backed by the company’s assets, Reducing Default Risk.
- High credit ratings – Double ‘Aa’ Rating Indicate Strong Credit Quality.
- Flexible Tenures and Interest Options – Choose Between monthly, annual, or cumulative interest options based on your cash flow needs.
- Strong Parentage – Backed by IIFL Group and reputed institutional investors.
Why not to invest in these ncds?
- NBFC Sector Risk – NBFCS face Higher Credit Risk, Especially In Times of Market Uncertain or Economic Downturns.
- Liquidity Risk – even thought listed, ncds have limited liquidity on stock exchanges.
- Interest Rate Risk – If interest rates go up in the future, these ncds might seem less attractive.
- No tax benefit – Interest income is full taxable as per your income slab.
- Investors Should Go Through All Internal and External Risk Factors in Iifl Home Finance Apr-2025 NCD Prospectus,
How to apply for Iifl Home Finance NCD?
You can apply for these ncds in demat mode only through the following modes:
- Online via your net banking/stock broking platforms like zerodha, upstox, icici direct, etc.
- Offline Through designated collection centers by submitting the filled application form along with a check.
Ensure that you apply early as allotment is on a first come, first served Basis.
Should you invest in Iifl Home Finance NCD April 2025?
IIFL Home Finance April 2025 NCDS Offer Attractive Yields Up to 10.25% with High Credit Rating and Secure Backing. Investors who are looking for fixed income investments with Higher returns
However, one should be aware of NBFC Sector-Specific Risks and Invest Only a Portfolio in Such Instruments. Thos in Higher Tax Brackets May Consider Cumulative Options to Defer Tax Liability. Conservative Investors Who Cannot Digest Risk Should Stay Away.
Moderate to High-Risk Investors Can Investrs in this NCD issue for regular income or long-term cumulative options.
Faqs about Iifl Home Finance April 2025 NCD Issue
- What is the issue open and close date for Iifl Home Finance NCD April 2025?
The issue Opeens on April 7, 2025, and Closes on April 23, 2025. - Is this NCD secured or unsecred?
These are secured ncds, backed by assets of the company. - What is the minimum investment required?
The minimum investment is ₹ 10,000 (10 NCDs of ₹ 1,000 Each). - What are the credit ratings assigned to this NCD?
Crisil Aa/Stable by Crisil and ICRA AA (Stable) by ICra. - How will I receive the interest payments?
Interest will be paid either monthly, annually, or cumulatively, depending on the chown option. - Is there any tax benefit for investment in this NCD?
No, there is no tax benefit. Interest income is taxable. - Can i exit before maturity?
Yes, these ncds are listed on bse and nse, but liquidity might be limited.
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(Tagstotranslate) IIFL Home Finance NCD – April 2025 (T) NCD (T) Upcoming NCD