11.19% Navi Finserv NCD Feb-2024 - Details, Interest Rates and Review (2024)

FAQs

Is Navi Finserv NCD good? ›

These NCDs are A/Stable rated by CRISIL. The NCDs are being issued in five series: coupon ranges from 10% to 11.19% p.a. and different tenures of 18, 27 and 36 months. The NCDs are secured and redeemable in nature.

Competitive Interest Rate: Navi offers a very competitive interest rate, making it an attractive option for investors looking for a good return on their investment. Creditworthiness: The Crisil 'A' rating is also significant because it puts Navi in a higher tier of creditworthiness than companies with lower ratings.

Investors can apply for the NCDs once the issue opens for subscription on February 26, 2024. Applications can be made online through financial platforms like Bigul.

Safe, secure and trustworthy: Navi is an application that is approved by RBI and follows all digital safety procedures to ensure secure money transfers and data privacy. Navi has become quite popular for its variety of loans and completely digital process.

Secured NCDs are considered safer of the two kinds as their issues are backed by the assets of the company. In the event of the company failing to pay on time, then the investors can recover their dues by liquidating the company's assets. However, the interest offered on NCDs is low.

NCDs are a type of debt instrument issued by companies to raise funds from investors without diluting equity. Non-convertible debentures (NCDs) represent a key financial instrument utilised by esteemed corporations to secure long-term capital.

The NCDs will attract a coupon rate ranging from 8.85% to 9.70% based on the series investors opt. The NCDs will have tenors ranging from 24 months to 120 months. The company will pay interest on monthly, annually or cumulative basis.

You're right: In 2022, Series I bonds, issued by the U.S. Treasury, rode a wave of popularity because they were one of the few safe ways to beat then-soaring inflation. “Rates were so poor everywhere else that people were like, 'Wow, I'll take 9% in a heartbeat,'” says Bob Peterson, a Chicago-area financial advisor.

Is there a downside to bonds? ›

These are the risks of holding bonds: Risk #1: When interest rates fall, bond prices rise. Risk #2: Having to reinvest proceeds at a lower rate than what the funds were previously earning. Risk #3: When inflation increases dramatically, bonds can have a negative rate of return.

Key Takeaways

Bonds are often touted as less risky than stocks—and for the most part, they are—but that does not mean you cannot lose money owning bonds. Bond prices decline when interest rates rise, when the issuer experiences a negative credit event, or as market liquidity dries up.

Navi is the latest venture by Sachin Bansal and Ankit Agarwal (formerly a banker with Deutsche Bank and Bank of America) that plans on making financial services simple, transparent and accessible to all. Navi has taken a technology-driven and customer-centric approach to launch products in the financial services space.

Navi Finserv will offer 11.19% interest rates on the NCDs. Navi Finserv NCD has a rating of CRISIL A/Stable by CRISIL.. The NCDs tenure is for 18, 27 and 36 months. Check out Navi Finserv NCD 2024 details here.

If you are looking for ways to earn a regular income from fixed return investments, an NCD investment can be a good option. Furthermore, one of the most trusted brands in India, Muthoot Finance regularly issues NCDs and it could be a great addition to your portfolio.

NCDs are safer as they cannot be converted into equity and have security attached that investors will receive payment to some extent if the issuer fails.

NCDs and Fixed Deposits (FDs) differ in risk levels. NCDs carry higher risk as their safety and returns hinge on the issuer's creditworthiness. It's crucial to assess the issuing company's credit rating and financial stability before investing.