IIFL Finance Ltd NCD
Rates, tenures, credit rating and current status for IIFL Finance Ltd's non-convertible debentures (NCDs) — updated at each new issue.
IIFL Finance Ltd is a systemically important non-banking financial company (NBFC) and the lending arm of the IIFL group. It runs a diversified retail loan book across gold loans, home loans (through subsidiary IIFL Home Finance), microfinance (through IIFL Samasta Finance), loans against property, and business and personal loans, with a network of 4,761 branches across 28 states (as of 31 Dec 2025). Its equity is listed on the NSE and BSE. Like most large NBFCs, IIFL Finance funds itself with a mix of bank loans, commercial paper and bonds, and it taps retail savers through public issues of secured non-convertible debentures (NCDs) that it lists on the exchanges. On credit standing, CRISIL reaffirmed its long-term rating at CRISIL AA/Stable on 27 January 2026 — a high-safety grade, but one notch below the top AAA.
Credit context worth knowing: on 4 March 2024 the Reserve Bank of India barred IIFL Finance from sanctioning or disbursing new gold loans after supervisory concerns in that portfolio. The restriction was lifted in September 2024, and the group has since rescaled its gold-loan business. The episode is a reminder that IIFL Finance carries regulatory and asset-quality risk typical of an NBFC, and it is a factor rating agencies continue to watch. NCDs from any NBFC are not bank deposits — they are not covered by deposit insurance and repayment depends on the issuer's own solvency.
Credit rating: CRISIL AA/Stable on IIFL Finance's NCDs (reaffirmed 27 Jan 2026). The Feb 2026 issue was rated CRISIL AA/Stable and Brickwork Ratings AA+/Stable; the earlier Apr 2025 issue was rated CRISIL AA/Stable and ICRA AA/Stable. AA denotes high safety and very low credit risk, but is one notch below AAA.
Latest / most recent NCD issue — Tranche I (February 2026)
| Parameter | Detail |
|---|---|
| Issue type | Secured, rated, listed, redeemable NCDs |
| Open – Close | 17 Feb 2026 – 4 Mar 2026 (now closed) |
| Face value | ₹1,000 per NCD |
| Minimum application | 10 NCDs (₹10,000) |
| Tenures | 24, 36 and 60 months |
| Coupon range | 8.37% – 9.00% p.a. |
| Effective yield | Up to 9.00% p.a. (maximum) |
| Issue size | ₹500 cr base + up to ₹1,500 cr green-shoe (₹2,000 cr shelf) |
| Amount allotted | ₹1,021.64 cr; subscribed ~2.29x |
| Rating | CRISIL AA/Stable; Brickwork Ratings AA+/Stable |
| Listing | NSE and BSE |
| Allotment basis | First-come, first-served |
Terms above are for the closed Feb 2026 tranche, whose maximum effective yield is 9.00% p.a. The higher figures sometimes cited for 'IIFL Finance NCD' — coupons up to 10.25% and effective yields of ~10.24% — belong to the earlier April 2025 issue, not this one. Any future tranche under IIFL Finance's shelf prospectus will re-set coupons to prevailing market rates.
Feb 2026 issue — series-wise coupon, tenure & yield
| Series | Interest payment | Tenure | Coupon (% p.a.) | Effective yield (% p.a.) |
|---|---|---|---|---|
| 1 | Monthly | 24 months | 8.37% | 8.70% |
| 2 | Monthly | 36 months | 8.52% | 8.85% |
| 3 | Monthly | 60 months | 8.65% | 9.00% |
| 4 | Annual | 24 months | 8.70% | 8.69% |
| 5 | Annual | 36 months | 8.85% | 8.84% |
| 6 | Annual | 60 months | 9.00% | 8.99% |
| 7 | Cumulative | 24 months | — | 8.70% |
| 8 | Cumulative | 36 months | — | 8.85% |
| 9 | Cumulative | 60 months | — | 9.00% |
Monthly-payout series carry a slightly lower coupon but a higher effective yield due to more frequent payouts; cumulative series pay all interest at maturity.
Earlier IIFL Finance NCD public issues (history)
| Issue | Open – Close | Tenures | Coupon range | Max effective yield | Rating |
|---|---|---|---|---|---|
| Tranche I, Apr 2025 | 7 Apr 2025 – 23 Apr 2025 | 15/24/36/60 months | 9.00% – 10.25% p.a. | ~10.24% p.a. | CRISIL AA/Stable; ICRA AA/Stable |
IIFL Finance is a repeat NCD issuer; coupons fell from ~10.25% (Apr 2025) to ~9.00% (Feb 2026) as market rates eased. Only issues with independently verifiable terms are listed here.
How to apply or buy
- During a live public issue: apply through your broker or demat app (Zerodha, Groww, Angel One, ICICI Direct, etc.) using ASBA/UPI, where the application amount is blocked in your bank account until allotment. For the Feb 2026 issue the minimum was 10 NCDs (₹10,000) at ₹1,000 face value, allotted first-come-first-served — so applying early mattered.
- You can also apply via the lead managers/registrar or online bond platforms that carry the issue. Always read the tranche prospectus (filed with SEBI and available on the issuer's and exchanges' sites) for the exact series, dates, registrar and terms.
- When no issue is open (as now): buy already-listed IIFL Finance NCDs on the secondary market. Search the ISIN/scrip on NSE or BSE through any broker and place a limit order. Prices move with interest rates and liquidity can be thin, so check the yield-to-maturity, accrued interest and spreads before buying.
- To hold NCDs you need a demat account and PAN. Interest is paid to your linked bank account; the NCD is redeemed at maturity to the demat holder of record.
The risk
These are NBFC NCDs, not bank deposits — they carry issuer credit risk and are not covered by deposit insurance. The Feb 2026 NCDs are "secured" (backed by a charge on IIFL Finance's receivables/assets), which improves recovery prospects but does not guarantee timely repayment; there is no government or bank guarantee. The CRISIL AA/Brickwork AA+ ratings signal high safety, yet AA is below the top AAA grade and ratings can be downgraded. IIFL Finance's gold-loan business was under an RBI embargo from March to September 2024, underlining the regulatory and asset-quality risks of a diversified NBFC. If you buy the listed NCD on the secondary market, you also take interest-rate and liquidity risk — thin volumes can mean wide bid-ask spreads and prices that move against you before maturity.
Sources
- https://www.chittorgarh.com/bond/iifl-finance-ncd-tranche-i-february-2026-ncd/374/
- https://ipowatch.in/iifl-finance-ncd-tranche-i-february-2026/
- https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/IIFLFinanceLimited_January%2027_%202026_RR_387837.html
- https://www.angelone.in/news/stocks/iifl-finance-ncd-oversubscribed-within-first-half-of-opening-on-feb-17
- https://scanx.trade/stock-market-news/corporate-actions/iifl-finance-completes-1-021-64-crore-ncd-allotment-across-nine-series/34318183
- https://ipowatch.in/iifl-finance-ncd-april-tranche-i-2025/
- https://www.chittorgarh.com/bond/iifl-finance-ncd-april-tranche-i-2025/335/
- https://www.iifl.com/finance/investor-relations/corporate-announcements
- https://www.icra.in/Rating/RatingDetails?CompanyName=IIFL+Finance+Limited
- https://www.prnewswire.com/in/news-releases/iifl-finance-reports-strong-q3-fy26-pat-of-rs-501-crore-up-20-quarter-on-quarter-302668923.html
NCDs are debt of a company and carry credit risk — you can lose money if the issuer defaults. This page is information, not investment advice; verify the current issue terms and credit rating before applying. Facts last verified July 2026.
All NCD trackersFrequently asked
What people ask about IIFL Finance Ltd NCDs.
IIFL Finance's most recent public issue (Tranche I, Feb 2026) offered coupons of 8.37% to 9.00% p.a. across 24, 36 and 60-month tenures, with effective yields up to 9.00% p.a. The earlier April 2025 issue paid up to 10.25% (max effective yield ~10.24%). No issue is open as of 9 July 2026, so any future tranche will set fresh rates based on prevailing market conditions.
The Feb 2026 NCDs are secured (backed by a charge on IIFL Finance's assets/receivables) and rated CRISIL AA/Stable and Brickwork AA+/Stable — high safety with very low, but not zero, credit risk. However, IIFL Finance is an NBFC, not a bank: these NCDs are not covered by deposit insurance and depend on the issuer's solvency. Note the RBI barred its gold-loan business from March to September 2024, a reminder of regulatory risk. AA is one notch below the top AAA grade.
For the Feb 2026 issue, allotment was first-come-first-served; IIFL allotted ₹1,021.64 crore (the issue was subscribed about 2.29x) and the NCDs are listed on NSE and BSE. Check allotment on the registrar's portal named in the prospectus using your PAN or application number, or via your broker/demat account. No issue is currently open.
During a public issue, apply through your broker or demat app using ASBA/UPI — the amount is blocked until allotment. The Feb 2026 minimum was 10 NCDs (₹10,000) at ₹1,000 face value. When no issue is open, you can instead buy listed IIFL Finance NCDs on NSE/BSE through any broker at the prevailing market price.
No. As of 9 July 2026 there is no open public NCD issue. The most recent one (Tranche I) closed on 4 March 2026 and is now listed on the exchanges. IIFL Finance is a frequent issuer, so new tranches under its shelf prospectus are possible — verify via the issuer's site, NSE/BSE and SEBI filings before acting.
Interest on NCDs is taxed at your income-tax slab rate and added to 'income from other sources'; TDS may apply. If you sell a listed NCD on the exchange, capital gains tax applies — short-term (held 12 months or less) at your slab rate, and long-term thereafter at the applicable rate. Consult a tax advisor for your situation.