Muthoot Mcred Limited
How this yield compares
About this bond
Muthoot Mcred Limited is a corporate bond issued by a company to raise debt from investors, currently offering a yield to maturity (YTM) of 10.8%. It pays a coupon of 10.8% and matures on 26 May 2028, a remaining tenure of about 1.8 yr. It is rated A, an adequate credit-safety grade. Jiraaf lists this bond with a minimum investment of ₹10K.
Its 10.8% yield is well above the market average, ranking 77th of 165 Corporate bonds we list. That edges 0.05 points past the Corporate median of 10.75%. Against a tenure-matched SBI fixed deposit (6.50%), it pays roughly 4.30 points more - a large gap that only makes sense once you are comfortable with the issuer's credit. Its short 1.8 yr horizon locks the rate for only a few years, limiting reinvestment risk. Paired with its high safety (A) rating, that leans toward the safety-first end. Compare it against similar bonds on RightBonds before investing.
Investors comparing this bond often also look at Muthoot MCred (INE101Q07CA7) at 10.6%, Muthoot MCred (INE101Q07BS1) at 10.25% and Muthoot MCred (INE101Q07BU7) at 10.25%.
Bond details
What you keep after tax
Interest on a listed corporate bond is added to your income and taxed at your slab, so the 10.8% headline is a pre-tax number. Here is the same bond seen from each slab, on ₹1,00,000 held for the remaining 1.8 yr.
| Your tax slab | Post-tax yield | ₹1,00,000 becomes |
|---|---|---|
| No tax (income under the exemption limit) | 10.80% | ₹1,20,409 |
| 5% slab | 10.26% | ₹1,19,349 |
| 20% slab | 8.64% | ₹1,16,192 |
| 30% slab | 7.56% | ₹1,14,109 |
At a 10.8% coupon, ₹1,00,000 of face value pays about ₹10,800 of interest a year. That is over the ₹10,000 Section 193 threshold, so roughly ₹1,080 a year is withheld as TDS - adjustable against your final liability, not an extra tax.
Slab rates only - surcharge and cess are not included, and the figures assume you hold to maturity. Sold on the exchange after 12 months instead, the gain is taxed as long-term capital gains at 12.5%. Not tax advice.
Against a fixed deposit, in rupees
Same ₹1,00,000, same 1.8 years, one in this bond and one in a tenure-matched SBI fixed deposit at 6.50%.
Bond figure compounds the yield annually; the FD compounds quarterly, as a cumulative bank FD does. Both are pre-tax and assume the bond is held to maturity and the issuer pays in full - the A credit risk is the reason for the gap.