Muthoot Fincorp Limited NCD
Rates, tenures, credit rating and current status for Muthoot Fincorp Limited's non-convertible debentures (NCDs) — updated at each new issue.
Muthoot Fincorp Limited (MFL) is a non-deposit-taking, systemically important NBFC and the flagship company of the Kerala-based Muthoot Pappachan Group, popularly branded "Muthoot Blue" and led by chairman Thomas John Muthoot. Its core business is gold loans, supplemented by microfinance (through its listed subsidiary Muthoot Microfin), vehicle finance, housing finance and money-transfer services. As of 31 March 2026 the group reported consolidated assets under management of roughly Rs 78,281 crore (up about 52% year-on-year from Rs 51,535 crore), of which the gold-loan book was about Rs 50,738 crore, or roughly 65% of AUM. Muthoot Fincorp's overall standalone gross NPAs were low at about 1.03% as of March 2026, improved from 1.98% a year earlier.
Crucially, Muthoot Fincorp is a DIFFERENT company from Muthoot Finance Ltd. Muthoot Finance is the larger, stock-exchange-listed gold-loan NBFC run by "The Muthoot Group" (the M.G. George Muthoot branch of the family); Muthoot Fincorp belongs to the Muthoot Pappachan / Muthoot Blue branch and its own equity is unlisted. The two are constantly confused because both carry the Muthoot name and both issue retail NCDs, but they are separate businesses with separate balance sheets, managements and credit ratings. Because MFL's equity is unlisted, it raises retail debt capital through secured NCD public issues on the BSE, which it does several times a year, offering fixed-income yields above bank FDs in exchange for taking NBFC credit risk.
Credit rating: CRISIL AA/Stable and Brickwork Ratings AA/Stable on the June 2026 (Tranche IV) NCDs. CRISIL upgraded Muthoot Fincorp's long-term rating to AA/Stable from AA-/Positive on 9 Jun 2026 (some perpetual bonds are rated CRISIL AA-/Stable; commercial paper CRISIL A1+). Verify the current rating on the issuer's disclosures and crisilratings.com before investing.
Latest / most recent NCD issue - Tranche IV (June 2026): key terms
| Parameter | Detail |
|---|---|
| Issue | Tranche IV under MFL's FY26 shelf prospectus |
| Status | Closed (opened 19 Jun 2026, closed 3 Jul 2026) |
| Type | Secured, redeemable, non-convertible debentures |
| Face value | Rs 1,000 per NCD |
| Minimum application | 10 NCDs (Rs 10,000) |
| Issue size | Rs 200 cr base + Rs 400 cr oversubscription = up to Rs 600 cr |
| Coupon range | 8.51% - 9.25% p.a. |
| Effective yield | up to ~9.24% p.a. |
| Tenures | 24 / 36 / 60 / 72 months |
| Credit rating | CRISIL AA/Stable; Brickwork Ratings AA/Stable |
| Listing | BSE (allotment ~7 Jul 2026; listing ~8 Jul 2026) |
| Registrar | Integrated Registry Management Services Pvt Ltd |
| Debenture trustee | Vardhman Trusteeship Pvt Ltd |
Dates and terms are for the closed Tranche IV. Confirm allotment and listing on the BSE / registrar; a new tranche will carry its own terms.
Tranche IV (June 2026) - series-wise coupon & effective yield
| Series | Interest payment | Tenure | Coupon (% p.a.) | Effective yield (% p.a.) |
|---|---|---|---|---|
| 1 | Monthly | 24 months | 8.51% | 8.84% |
| 2 | Monthly | 36 months | 8.65% | 9.00% |
| 3 | Monthly | 60 months | 8.79% | 9.15% |
| 4 | Monthly | 72 months | 8.88% | 9.24% |
| 5 | Annual | 24 months | 8.85% | 8.84% |
| 6 | Annual | 36 months | 9.00% | 8.99% |
| 7 | Annual | 60 months | 9.15% | 9.14% |
| 8 | Annual | 72 months | 9.25% | 9.24% |
| 9 | Cumulative | 24 months | - | 8.85% |
| 10 | Cumulative | 36 months | - | 9.00% |
| 11 | Cumulative | 60 months | - | 9.15% |
Series as verified for the closed Tranche IV; a 72-month cumulative option was also offered. Cumulative series pay no periodic interest and redeem at a stepped-up maturity value. This is the issue coupon, not the current secondary-market yield - check the live price on the BSE.
Recent Muthoot Fincorp NCD tranches (2026)
| Tranche | Issue period | Coupon range (p.a.) | Max effective yield | Status |
|---|---|---|---|---|
| Tranche I | Feb 2026 | up to ~9.10% | ~9.10% | Closed / listed |
| Tranche II | Mar 2026 | 8.37% - 9.10% | 9.10% | Closed / listed |
| Tranche III | Apr 2026 | up to ~9.25% | 9.25% | Closed / listed |
| Tranche IV | Jun 2026 | 8.51% - 9.25% | ~9.24% | Closed; listing on BSE ~8 Jul 2026 |
MFL issues secured NCDs several times a year under successive shelf prospectuses. Coupons drift with market rates and the issuer's rating; higher tenures pay more.
How to apply or buy
- During a live public issue: apply online via ASBA/UPI through your stockbroker or bank. Most brokers (Zerodha, Groww, Angel One, ICICI Direct, HDFC Securities and others) list open NCDs under their 'IPO' or 'Bonds' section; pick the series, enter quantity (minimum 10 NCDs = Rs 10,000) and authorise the UPI/ASBA mandate. Retail NCDs are allotted first-come-first-served, so popular issues can close before the official end date.
- No Muthoot Fincorp issue is open right now (Tranche IV closed 3 Jul 2026). To buy the already-listed NCDs, use the secondary market: search the ISIN/scrip on the BSE through any demat account and place a limit order. Listed NCDs often trade thinly, so the live price and yield can differ from the issue coupon and large orders may move the price.
- Interest and maturity proceeds are paid directly to your registered bank account and the NCDs are held in your demat account. Coupon income is fully taxable at your income-tax slab rate; listed NCDs held in demat generally have no TDS but the income must still be declared.
- To check allotment for a past issue, use the registrar (Integrated Registry Management Services) or the BSE website with your PAN, application number or demat details.
The risk
Muthoot Fincorp NCDs are secured against the company's receivables, but "secured" is not the same as "safe": these are corporate debentures, not bank deposits, and are NOT covered by DICGC deposit insurance. At CRISIL/Brickwork AA/Stable they are investment-grade but still a notch below the top AAA tier, and repayment depends entirely on MFL's continued financial health. Risks flagged by CRISIL (Jun 2026) include heavy geographic concentration in South India (~55% of the gold book), asset-quality stress in the non-gold segments (microfinance and vehicle finance) and elevated gearing of about 6.4x. The core gold-loan book is well-collateralised and MFL's overall standalone (company-wide) GNPA is low at ~1.03%, which supports the rating, but a sharp fall in gold prices or deterioration in the non-gold segments could pressure it. NBFC NCDs can and do default (for example the unrelated TruCap NCD default in 2025), so size any position accordingly, diversify across issuers, and do not treat the coupon as guaranteed.
Sources
- CRISIL Ratings - Muthoot Fincorp Limited rating rationale, 9 Jun 2026 (upgrade to CRISIL AA/Stable): https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/MuthootFincorpLimited_June%2009_%202026_RR_397959.html
- Chittorgarh - Muthoot Fincorp NCD Tranche IV June 2026 public issue detail: https://www.chittorgarh.com/bond/muthoot-fincorp-ncd-tranche-iv-june-2026/387/
- Groww - Muthoot Fincorp NCD Tranche IV June 2026 (dates, size, listing): https://groww.in/bonds/ipo/muthoot-fincorp-ncd-tranche-iv-june-2026
- IPO Watch - Muthoot Fincorp NCD Tranche IV June 2026 (series-wise coupons & yields): https://ipowatch.in/muthoot-fincorp-ncd-tranche-iv-june-2026/
- Business News This Week - Muthoot Fincorp Tranche IV, Rs 600 cr, 19 Jun-3 Jul 2026: https://businessnewsthisweek.com/business/muthoot-fincorp-limited-announces-ncd-tranche-iv-aims-to-raise-rs-60000-lakhs-subscription-open-from-june-19-to-july-3-2026/
- JM Financial Services - Muthoot Fincorp NCD Tranche II March 2026 (series table reference): https://www.jmfinancialservices.in/blogs-and-articles/muthoot-fincorp-ncd-tranche-ii-march-2026
- Muthoot Fincorp - Investors page (official): https://muthootfincorp.com/investors
- Wikipedia - Muthoot Pappachan Group (Muthoot Blue) vs The Muthoot Group distinction: https://en.wikipedia.org/wiki/Muthoot_Pappachan_Group
- BSE India (secondary-market price, allotment & listing verification): https://www.bseindia.com
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 Muthoot Fincorp Limited NCDs.
In the most recent issue (Tranche IV, June 2026, now closed) secured NCD coupons ranged from 8.51% to 9.25% per annum across 24, 36, 60 and 72-month tenures, with effective yields up to about 9.24%. Longer tenures and the annual/cumulative options paid the most. No issue is open as of 9 Jul 2026, so any new tranche will carry fresh, market-linked rates.
It is relatively strong but not risk-free. The June 2026 NCDs are rated CRISIL AA/Stable and Brickwork Ratings AA/Stable - investment grade, but a notch below the top AAA tier - and they are secured against the company's receivables. However, they are corporate debentures, not bank deposits: they are not covered by DICGC deposit insurance and repayment depends on Muthoot Fincorp's financial health. The gold-loan book is well-collateralised and MFL's overall standalone GNPA is low at about 1.03%, but the group has asset-quality stress in microfinance and vehicle finance and elevated gearing, so treat these as higher-yield, higher-risk than an FD.
Check with the registrar, Integrated Registry Management Services, or on the BSE website using your PAN, application number or demat/client ID. For Tranche IV, allotment was scheduled around 7 Jul 2026 with listing on the BSE around 8 Jul 2026, after which the NCDs appear in your demat holdings.
When an issue is open, apply online through your broker or bank using ASBA/UPI - select the series, enter at least 10 NCDs (Rs 10,000) and approve the mandate. No Muthoot Fincorp issue is open right now, so to invest today you would buy the already-listed NCDs on the BSE secondary market through any demat account, checking the live price and yield before ordering.
They are from two different companies. Muthoot Fincorp Ltd is the unlisted flagship of the Muthoot Pappachan Group (Muthoot Blue); Muthoot Finance Ltd is the larger, stock-exchange-listed company of The Muthoot Group. Both issue retail NCDs and share the Muthoot name, but they have separate balance sheets, managements and credit ratings. Always confirm the exact issuer name and the ISIN before you apply, because their coupons and ratings differ.
Muthoot Fincorp issues NCDs several times a year - it ran four tranches in the first half of 2026 (Feb, Mar, Apr and Jun). The last one closed on 3 Jul 2026 and no next date has been confirmed as of 9 Jul 2026. Watch the issuer's investor page, SEBI/BSE filings and NCD trackers such as Chittorgarh for the next tranche announcement.