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Yield (% Return)

This is indicative % returns on your bond investments

Balance tenure

Time period after which your initial investment is paid back

Interest payment frequency

Time period between two interest payments on your bond

Credit rating

This shows the safety of the issuer. Higher the rating - safer the bond

High Yield Bonds

High Yield Bonds are issued by companies looking for working capital to manage their ongoing business requirements or to refinance any of their existing debt. Invest in High Yield Bonds online through IndiaBonds with returns which are relatively higher than Fixed Deposits

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Yield (% Return)

This is indicative % returns on your bond investments

Balance tenure

Time period after which your initial investment is paid back

Interest payment frequency

Time period between two interest payments on your bond

Credit rating

This shows the safety of the issuer. Higher the rating - safer the bond


Spandana Sphoorty Financial Limited

Coupon

11.3500%

Maturity

Sep 2024

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.8700%

Price

₹ 8,56,819.11

Mas Financial Services Limited

Coupon

10.7500%

Maturity

Oct 2028

Rating

CARE  A+

Type of Bond

Subordinate Debt

Yield

11.4437%

Price

₹ 99,546.86

Muthoot Microfin Limited

Coupon

11.0000%

Maturity

Jan 2026

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.1129%

Price

₹ 1,00,800.27

Piramal Capital & Housing Finance Limited

Coupon

6.7500%

Maturity

Sep 2031

Rating

CARE  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.8000%

Price

₹ 789.36

Andhra Pradesh Capital Region Development Authority

Coupon

10.3200%

Maturity

Aug 2026

Rating

CRISIL  A-(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

10.6500%

Price

₹ 2,03,008.70

Yes Bank Limited

Coupon

9.0000%

Maturity

Mar 2026

Rating

CARE  A-

Type of Bond

Subordinate Debt Tier 2

Yield

10.2000%

Price

₹ 9,71,292.51

Yes Bank Limited

Coupon

8.0000%

Maturity

Sep 2026

Rating

CARE  A-

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

10.0000%

Price

₹ 9,83,233.30

Auxilo Finserve Private Limited

Coupon

0.0000%

Maturity

Sep 2024

Rating

CRISIL  A

Type of Bond

Market Linked Debentures

Yield

9.8500%

Price

₹ 10,48,597.00

Avanse Financial Services Limited

Coupon

9.2500%

Maturity

Feb 2026

Rating

CARE  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.7500%

Price

₹ 1,00,889.18

Bond Name Coupon Maturity Rating Interest Payment Yield Price Action

SPANDANA SPHOORTY FINANCIAL LIMITED

11.3500%

Sep 2024

Ind-Ra A

Monthly

11.8700%

₹ 8,56,819.11

Read More

MAS FINANCIAL SERVICES LIMITED

10.7500%

Oct 2028

CARE A+

Monthly

11.4437%

₹ 99,546.86

Read More

MUTHOOT MICROFIN LIMITED

11.0000%

Jan 2026

CRISIL A+

Monthly

11.1129%

₹ 1,00,800.27

Read More

PIRAMAL CAPITAL & HOUSING FINANCE LIMITED

6.7500%

Sep 2031

CARE AA

Semi Annual

10.8000%

₹ 789.36

Read More

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

10.3200%

Aug 2026

CRISIL A-(CE)

Quaterly

10.6500%

₹ 2,03,008.70

Read More

YES BANK LIMITED

9.0000%

Mar 2026

CARE A-

Annual

10.2000%

₹ 9,71,292.51

Read More

YES BANK LIMITED

8.0000%

Sep 2026

CARE A-

Annual

10.0000%

₹ 9,83,233.30

Read More

AUXILO FINSERVE PRIVATE LIMITED

-

Sep 2024

CRISIL A

Cumulative at Maturity

9.8500%

₹ 10,48,597.00

Read More

AVANSE FINANCIAL SERVICES LIMITED

9.2500%

Feb 2026

CARE A+

Annual

9.7500%

₹ 1,00,889.18

Read More

Note: The listing of products above should not be considered an endorsement or recommendation to invest. Please use your own discretion before you transact. The listed products and their price or yield are subject to availability and market cutoff times.

Features of High Yield Bonds

Higher Yields – The Bond issuers offer higher interest or may potentially be trading at a lower price because of which the yield you can earn on such bonds is higher than other higher rated bonds.

Shorter maturities – Typically, High Yield Bonds in India have a shorter maturity in comparison that ranges somewhere in between 1- 4 years.

A lot of these High Yield Bonds are issued by start-ups or small businesses. Since, they have limited to none borrowing history, they receive a lower credit-rating by default.Lower Credit Ratings: High Yield Bonds could range anywhere between A to BBB. Lower the rating higher is the risk on such bonds.

What are High Yield Bonds?

High Yield Bonds are a type debt security which are issued by corporates. They are also called as High Yield Corporate Bonds, Small Cap Bonds. These Bonds usually pay a higher interest rate because they have a lower credit rating(typically in the range of A+ to BBB). As a result, they compensate the lower credit rating with higher yield and typically a higher coupon rate as well in comparison to other similar bonds with better ratings.

However, just because these securities have a slightly lower credit rating doesn’t make these bonds a less desirable investment option. Many High Yield Bonds are issued by startups, small subsidiaries that are part of larger organizations, emerging companies or simply first time bond investors. Smaller companies seeking for working capital issue high Yield Bonds since it provides them with financing opportunities which help them in their business expansion plans.

While the term low credit rating sticks a negative overtone to the investment option, it is important to understand that when the economy does well or the High yield bond issuing company’s performance improves, there is a great potential for your returns to increase as the company can get ratings upgraded. As with any investment, investors must conduct a proper research and due diligence by thoroughly studying the company’s business model, the historical performance, their balance sheet and P&L account, its debt history, growth and expansion plans etc before investing. Basis your due diligence, when you buy High Yield Bonds of promising companies that show growth potential, you can enjoy the potential of capital growth helping you enjoy potentially attractive and higher returns unlike higher credit rating bonds where both the yield and interest will be lower in comparison.

More about High Yield Bonds

These bonds are best suited for investors seeking investments with higher returns and have an appetite to accommodate a reasonable level of risk associated with it. Sign up on IndiaBonds to access the latest High Yield Bonds in India. Choose form a variety of Bonds to diversify your portfolio, and earn better returns than Fixed Deposits.

Access all bond issue details, detailed risk assessment, as well as calculate the final payout on your high yield Bond investments. Download issue related documents and access high quality bond information sourced directly from SEBI and the exchanges for investors to take informed decisions.

Benefits of High Yield Bonds

Potential Capital Appreciation

When you invest in High Yield Bonds there is a potential to receive capital appreciation when the company’s financial performance sees an upturn. This will then improve the issuers credit rating which will increase the price of such bonds thereby helping investors earn higher returns since the overall bond value increases.

Earn High Interest

High Yield Bond Funds typically give out a higher rate of return since they have a lower credit rating., Issuers will give out a higher rate of interest to compensate for the risk the investors are willing to take. In comparison, other similar type of bond but which have a better credit rating the coupon rate will be much lesser than High Yield Bonds.

What is the Procedure to buy High Yield Bonds?The procedure to invest in High Yield Bonds online is very simple on IndiaBonds

Signup

To purchase High Yield Bonds online, the first step is to sign up on Indiabonds.com

1

Complete KYC

Complete your KYC online in less than 3 mins! There is no need to complete any paperwork or make any uploads.

2

Browse Curated Packs

Browse the curated packs and select high yield Bonds on the explore Page to view a variety of High Yield Bonds for investments

3

SignUp Step
SignUp Step4

Pick your choice

Pick your choice of High Yield Bonds from a curated list of High Yield Bonds on our website.

4

Get detailed reports

Click Read more to get detailed issue reports like interest payment frequency and to calculate your investment as against the final payout.

5

Click on "Buy this Bond"

Click on “Buy this Bond” and submit your details. The Bond Managers will help you with the rest. That’s about it.

6

Connect with your Bond Managers

In case you are not sure how to invest in High Yield Bonds, you can reach out to our Bond Managers who will help you buy High Yield Bonds online

7

Click on "Buy this Bond"

Click on “Buy this Bond” and submit your details. The Bond Managers will help you with the rest. That’s about it.

6

Connect with your Bond Managers

In case you are not sure how to invest in High Yield Bonds, you can reach out to our Bond Managers who will help you buy High Yield Bonds online

7

Discover our Curated Packs

KERALA FINANCIAL CORPORATION

Coupon

8.9000%

Maturity

Mar 2030

Rating

IVR  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.1500%

Price

₹ 1,00,487.00

KERALA FINANCIAL CORPORATION

Coupon

8.9000%

Maturity

Mar 2029

Rating

IVR  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.1500%

Price

₹ 1,00,459.10

KERALA FINANCIAL CORPORATION

Coupon

8.9000%

Maturity

Mar 2032

Rating

IVR  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.1500%

Price

₹ 1,00,528.70

KERALA FINANCIAL CORPORATION

Coupon

8.9000%

Maturity

Mar 2031

Rating

IVR  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.1500%

Price

₹ 1,00,512.50

KERALA FINANCIAL CORPORATION

Coupon

8.9000%

Maturity

Mar 2033

Rating

IVR  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.1500%

Price

₹ 1,00,545.90

SPANDANA SPHOORTY FINANCIAL LIMITED

Coupon

11.3500%

Maturity

Sep 2024

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.8700%

Price

₹ 8,56,819.11

MAS FINANCIAL SERVICES LIMITED

Coupon

10.7500%

Maturity

Oct 2028

Rating

CARE  A+

Type of Bond

Subordinate Debt

Yield

11.4437%

Price

₹ 99,546.86

MUTHOOT MICROFIN LIMITED

Coupon

11.0000%

Maturity

Jan 2026

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.1129%

Price

₹ 1,00,800.27

PIRAMAL CAPITAL & HOUSING FINANCE LIMITED

Coupon

6.7500%

Maturity

Sep 2031

Rating

CARE  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

10.8000%

Price

₹ 789.36

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

Coupon

10.3200%

Maturity

Aug 2026

Rating

CRISIL  A-(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

10.6500%

Price

₹ 2,03,008.70

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

Coupon

10.3200%

Maturity

Aug 2026

Rating

CRISIL  A-(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

10.6500%

Price

₹ 2,03,008.70

U.P. POWER CORPORATION LIMITED

Coupon

9.9500%

Maturity

Mar 2031

Rating

Ind-Ra  A+(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.0000%

Price

₹ 10,69,343.01

U.P. POWER CORPORATION LIMITED

Coupon

9.9500%

Maturity

Mar 2025

Rating

Ind-Ra  A+(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.0000%

Price

₹ 10,19,593.01

U.P. POWER CORPORATION LIMITED

Coupon

9.7000%

Maturity

Mar 2031

Rating

Ind-Ra  A+(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.0000%

Price

₹ 10,55,512.77

U.P. POWER CORPORATION LIMITED

Coupon

9.9500%

Maturity

Mar 2026

Rating

Ind-Ra  A+(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.0000%

Price

₹ 10,29,760.01

YES BANK LIMITED

Coupon

9.0000%

Maturity

Mar 2026

Rating

CARE  A-

Type of Bond

Subordinate Debt Tier 2

Yield

10.2000%

Price

₹ 9,71,292.51

YES BANK LIMITED

Coupon

8.0000%

Maturity

Sep 2026

Rating

CARE  A-

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

10.0000%

Price

₹ 9,83,233.30

UCO BANK

Coupon

9.5000%

Call Date

Mar 2028

Rating

IVR  AA-

Type of Bond

Bank AT1 Perpetual Bond

Yield

9.4838%

Price

₹ 1,00,49,316.94

BANK OF BARODA

Coupon

8.7000%

Call Date

Nov 2024

Rating

CRISIL  AA+

Type of Bond

Bank AT1 Perpetual Bond

Yield

8.2000%

Price

₹ 10,36,958.59

STATE BANK OF INDIA

Coupon

7.7000%

Maturity

Jan 2038

Rating

Ind-Ra  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.6000%

Price

₹ 1,02,375.89

BANK OF BARODA

Coupon

8.7000%

Call Date

Nov 2024

Rating

CRISIL  AA+

Type of Bond

Bank AT1 Perpetual Bond

Yield

8.2000%

Price

₹ 10,36,958.59

MAHANAGAR TELEPHONE NIGAM LIMITED.

Coupon

7.7800%

Maturity

Feb 2033

Rating

CARE  AAA(CE)

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.9223%

Price

₹ 10,11,510.14

POWER FINANCE CORPORATION LTD.

Coupon

7.8200%

Maturity

Mar 2038

Rating

CRISIL  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.6500%

Price

₹ 1,02,047.78

NATIONAL HIGHWAYS AUTHORITY OF INDIA

Coupon

7.0500%

Maturity

Sep 2041

Rating

CARE  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.6000%

Price

₹ 9,81,624.48

POWER FINANCE CORPORATION LTD.

Coupon

7.4200%

Maturity

Sep 2032

Rating

CRISIL  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.6000%

Price

₹ 10,29,565.12

NATIONAL HOUSING BANK

Coupon

8.4600%

Maturity

Aug 2028

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2400%

Price

₹ 11,97,917.22

INDIAN RAILWAY FINANCE CORPORATION LIMITED

Coupon

7.0400%

Maturity

Mar 2026

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2400%

Price

₹ 10,80,384.79

NHPC LIMITED

Coupon

8.5400%

Maturity

Nov 2028

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2400%

Price

₹ 1,157.15

INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED

Coupon

7.3600%

Maturity

Jan 2028

Rating

BWR  AAA

Type of Bond

Tax-free Bond

Yield

5.2400%

Price

₹ 1,101.96

AUXILO FINSERVE PRIVATE LIMITED

Coupon

0.0000%

Maturity

Sep 2024

Rating

CRISIL  A

Type of Bond

Market Linked Debentures

Yield

9.8500%

Price

₹ 10,48,597.00

BELSTAR MICROFINANCE LIMITED

Coupon

0.0000%

Maturity

Oct 2024

Rating

CRISIL  AA-

Type of Bond

Market Linked Debentures

Yield

9.3500%

Price

₹ 10,38,941.00

SHRIRAM FINANCE LIMITED

Coupon

0.0000%

Maturity

Nov 2024

Rating

CRISIL  AA+

Type of Bond

Market Linked Debentures

Yield

7.9000%

Price

₹ 10,47,176.00

SPANDANA SPHOORTY FINANCIAL LIMITED

Coupon

11.3500%

Maturity

Sep 2024

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.8700%

Price

₹ 8,56,819.11

MAS FINANCIAL SERVICES LIMITED

Coupon

10.7500%

Maturity

Oct 2028

Rating

CARE  A+

Type of Bond

Subordinate Debt

Yield

11.4437%

Price

₹ 99,546.86

MUTHOOT MICROFIN LIMITED

Coupon

11.0000%

Maturity

Jan 2026

Rating

CRISIL  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.1129%

Price

₹ 1,00,800.27

SHRIRAM FINANCE LIMITED

Coupon

10.2500%

Maturity

Apr 2024

Rating

CRISIL  AA+

Type of Bond

Subordinate Debt

Yield

9.1500%

Price

₹ 10,16,912.58

VISTAAR FINANCIAL SERVICES PRIVATE LIMITED

Coupon

10.5000%

Maturity

Aug 2025

Rating

ICRA  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

8.7500%

Price

₹ 10,09,326.36

Note: The listing of products above should not be considered an endorsement or recommendation to invest. Please use your own discretion before you transact. The listed products and their price or yield are subject to availability and market cutoff times.

Frequently Asked Questions

What are High Yield Bonds?

High Yield Bonds also go by the name of, Small cap Bonds . These are bonds issued by companies or corporates that have a lower credit rating, typically non-investment grade, and which offer higher coupon or interest rate. While High Yield are majorly issued by companies that were previously investment grade issuers but have now seen a dip in their credit rating, these bonds are also issued by several emerging companies and startups that fall under this category. Since these companies have newly been established with no prior credit history the rating would most likely fall on the lower end.

Are High Yield Bonds risky?

Since High Yield Bonds are bonds issued by companies with a lower credit rating, this means there is some risk attached to such investments. A dip in a credit rating indicates a lowered ability by the issuer to pay timely payments in terms of interest to the investors. Since investors are made to assume such risk, issuers offer a higher and attractive coupon or interest rate to investors in compensation of such possible risk. However, when the company’s financial performance improves thereby upgrading its credit rating, or if the economy does well, High Yield Bonds can offer high returns. High Yield Bonds act as a middle ground between stocks and government bonds. While there is a reasonable risk associated with such investments the returns that can be earned are equally high.

What is the minimum investment for High Yield Bonds?

There are several kinds of High Yield Bonds in the market. In case investors want to invest in Listed High Yield Bonds via the Primary Market, the minimum investment amount is INR 10,000. That means investors have to get a minimum of 10 bonds which have a face value of 1000 each. When it comes to secondary markets, Listed Bonds that were first issued in the primary market and now being traded in the secondary market via a recognized settlement agencies like ICCL /NSCCL have a minimum investment amount of INR 2 Lakhs. This is because the transaction takes place via RTGS which has a minimum amount requirement of INR 2 Lakhs.

How to buy High Yield Bonds?

Investors can buy High Yield Bonds either from the Primary market or the Secondary market. Investors can access these bonds for investment via the exchange directly or through Online Bond investment platforms of IndiaBonds.

Who should invest in High Yield Bonds?

Since High Yield Bonds offer investors the benefits of both stocks and government bonds as a middle ground, they are a great investment option for anyone wanting to not only earn a higher income in terms of capital appreciation and higher returns but also has the appetite to withstand the potentially greater risk that is associated with it. It is meant for investors who can hold on to their investments for at least 1 to 3 years. This way investors may enjoy the benefits of higher returns in the future when the economy or company’s performance improves.

What are the risks associated with High Yield Bonds?

Just like any other investment class, along with the several advantages that High Yield Bonds have to offer, there are certain risks attached to it

1. Credit risks - In case the economy sees a downturn there may be increased defaults in this asset class. In such times the issuer may be unable to make interest or principal payments. It’s important to study the company well before investors buy High Yield Bonds

2. Interest Rate Risks - When interest rate sin the economy move higher, issuers may be under pressure from increased costs for their business causing stress on their bonds