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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

Tax Free Bonds

Tax Free Bonds are a great investment for investors who are looking for relatively safe long term investment options that help earn fixed and regular higher income as well as save taxes on such interest income.

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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

Curated Pack : Tax Free Bonds


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

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

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

Nhpc Limited

Coupon

8.5400%

Maturity

Nov 2028

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2400%

Price

₹ 1,157.15

Bond Name Coupon Maturity Rating Interest Payment Yield Price Action

INDIAN RAILWAY FINANCE CORPORATION LIMITED

7.0400%

Mar 2026

CARE AAA

Annual

5.2400%

₹ 10,80,384.79

Read More

NATIONAL HOUSING BANK

8.4600%

Aug 2028

CARE AAA

Annual

5.2400%

₹ 11,97,917.22

Read More

INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED

7.3600%

Jan 2028

BWR AAA

Annual

5.2400%

₹ 1,101.96

Read More

NHPC LIMITED

8.5400%

Nov 2028

CARE AAA

Annual

5.2400%

₹ 1,157.15

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.

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

How do you redeem Tax Free Bonds?

The steps to redeem Tax Free Bonds is quite simple the bond can be traded in the secondary market/stock exchanges. Investors looking to exit their investments can sell their bonds through the secondary markets. If held till maturity, the issuer repays the principal at redemption
It’s important to note that any profits made on selling these bonds are taxable. If you sell these bonds within a year of holding them the profits will be taxable as per the income tax bracket you reside in. In case investors sell the bonds after 1 year the profits will attract long term capital gains tax at 10% without indexation.

Who are the issuers of Tax Free Bonds?

Issuers of Tax Free Bonds are usually entities that have been incorporated by the government or government enterprises. These entities are established to work on projects that will help build the nation and benefit the people and could be associated with infrastructure, electrification program, housing development etc. These companies usually have their stakes owned directly by the president of India. A few examples of tax free bond issuers are as follows: National Highway Authority of India (NHAI), Power finance Corporation Limited (PFC), Indian Infrastructure Finance Company Limited (IIFCL), Housing and Urban Development Corporation Limited (HUDCO)

Are Tax Free Bonds a safe investment option?

Bonds in general are a relatively safer investment option in comparison to other choices like stocks etc. To top that since Tax Free Bonds are issued by government enterprises, it makes these investments have quite a low probability to default.. As a result, Tax Free Bonds can therefore be considered a relatively safer investment option for investors who are looking for long term fixed income investment option.

How to invest in Tax Free Bonds?

Tax Free Bonds can be purchased from the primary market where investors buy these bonds from the entity directly, where it is issued for the first time. The other way to invest in Tax Free Bonds is through Secondary markets. Since Tax Free Bonds have not been issued since 2016 investors can look to invest through secondary markets. Browse through Tax Free Bonds online on IndiaBonds and get access to detailed bond information.