What are the Interest Rates Offered By NBFC Bonds?

Following the Reserve Bank of India’s repo rate cut of 0.25% p.a. in the December 2025 MPC meeting, fixed deposit (FD) yields are expected to trend lower in the coming months. In this environment, many conservative savers are now exploring NBFC bonds as an alternative for potentially higher returns. 

As an investor, you must note that NBFC bond interest rates vary widely based on the issuer’s financial strength and credit rating. Usually, AA or AAA-rated bonds may offer lower yields due to their high safety + lower default risk. In contrast, lower-rated bonds (say BBB or lower) compensate investors with higher returns for taking on additional risk.

If we specifically talk about high-yield NBFC bond rates, you may earn returns of up to 14.10% per annum (as of December 14, 2025). Want to understand in detail? Read this article to check out the current interest rates of NBFC bonds across various categories. But firstly, let’s explore the latest NBFC bond interest rate trends.

What are the Latest NBFC Bond Interest Rate Trends?

In 2025, India entered a rate-cut cycle due to cooling inflation (3.16% in April 2025). In response to the cumulative 125 basis points repo rate cuts by RBI, banks have now started reducing FD rates, with the biggest reductions in one- to two-year tenures. Since February 2025, many banks have reduced rates by 50 to 100 basis points. For example, 

• SBI’s highest FD rate for regular investors (under the Amrit Vrishti scheme) has fallen from 7.1% to 6.6%.
• HDFC Bank’s peak FD rate has significantly reduced from 7.25% to 6.6%.

Now, as fixed deposit rates begin to soften, NBFC bonds are drawing more investor interest. According to an Economic Times research report, several mid-sized NBFCs are now increasingly raising funds through Non-Convertible Debentures (NCDs). 

By FY27, NCD issuances are expected to grow at a 13% CAGR (compounded annual growth rate), with total NBFC borrowings projected to reach about $750 billion. Okay, but how does this impact bond yields? Understand in the next section.

How Does The Softening of FD Rates May Impact Bond Yields?

Falling FD rates and the broader rate-cut cycle may have a mixed impact on bond yields, particularly NBFC bonds. Let’s check out both short and mid- to long-term NBFC bond interest rate trends (potentially expected):

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Current Interest Rates of NBFC Bonds 2026

As mentioned before, NBFC bond interest rates depend largely on the credit rating. As of December 14, 2025, AAA-rated NBFC bonds issued by companies such as India Infradebt Limited, Bajaj Finance, and Tata Capital offer coupon rates up to 7.40% p.a. You can observe that these rates are higher than the FD rates offered by leading banks, such as SBI and HDFC Bank. 

If you are looking to compare NBFC bond interest rates across multiple issuers, you may refer to the different bond collections below:

A) High-Yield Bonds (Yield More than 11%)

Note: All the above bonds can be purchased from the GoldenPi platform. The above yields are valid as of December 14, 2025. Investors must do their own research before investing. 

B) Highly-Rated Bonds (AAA-Rated)

Note: All the above bonds can be purchased from the GoldenPi platform. The above yields are valid as of December 14, 2025. Investors must do their own research before investing. 

C) Short-Term Bonds (Maturing Within 3 Years)

Note: All the above bonds can be purchased from the GoldenPi platform. The above yields are valid as of December 14, 2025. Investors must do their own research before investing. 

In Summary, You Can Earn NBFC Bond Interest Rates Between 7.40% to 14.10% p.a. (as of December 14, 2025)

So now you are aware of the various latest NBFC bond interest rates and how they compare across risk categories. If you prefer safer options, AAA-rated bonds may offer returns of up to 7.40% per annum. For investors willing to take higher credit risk:

• High-yield bonds can deliver returns of up to 14.10% per annum

and

• Short-term bonds may provide yields of up to 11.26% per annum

In a falling interest-rate environment where fixed deposit returns are easing, such debt instruments can offer better income opportunities, provided risks are understood and assessed carefully. 

If you wish to explore these options further, you can visit the GoldenPi platform and check out our various bond collections, which include:

• AAA-rated bonds
• Short-term bonds
• High-yield bonds
• State government-guaranteed bonds
• Bonds at a discounted price, and more

Also, the investment process is 100% online, with no need for in-person branch visits.

NBFC Bond Interest Rates FAQs

Why do NBFC bond interest rates vary?

NBFC bond interest rates differ based on credit rating, tenure, and the issuer’s financial strength. Highly rated NBFCs with strong financial positions usually offer lower coupon rates. In contrast, lower-rated issuers pay higher rates to compensate investors for a greater default risk (potential).

What are the latest high-yield NBFC bond rates for 2026?

As per the current NBFC bond interest rate trends, high-yield NBFC bonds may offer returns of up to 14.10% per annum (as of December 2025). To explore multiple such options, you may check out the list of high-yield bonds on the GoldenPi platform.

What is the relationship between NBFC bond interest rates and FD rates?

As per industry understanding, NBFC bond interest rates may move in the same direction as FD rates. However, since debt instruments, like bonds, are considered riskier than FDs, they may offer comparatively higher coupon rates to attract investors.

What are credit ratings and how to analyse them before investing?

Credit ratings indicate an issuer’s ability to repay debt. Higher ratings (AAA, AA) could mean lower risk, while lower ratings (BBB and below) may indicate weak financial capacity + higher default risk. As an investor, you may review rating agency reports (say those issued by CRISIL, ICRA, and India Ratings), financial statements, and recent “rating changes” before investing.

Disclaimer:

This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the debt securities/ municipal debt securities/ securitised debt instruments are subject to risks, including delay and/ or default in payment. Read all the offer-related documents carefully.

Bonds or non-convertible debentures (NCDs) are regulated by the Securities and Exchange Board of India and other government authorities. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.

About GoldenPi Expert

With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.

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