IKF Finance Limited
IKF Finance Limited is a corporate bond issued by a company to raise debt from investors, currently offering a yield to maturity (YTM) of 9.5%.
Data as of 11 Sept 2026
How this yield compares
About this bond
IKF Finance Limited is a corporate bond issued by a company to raise debt from investors, currently offering a yield to maturity (YTM) of 9.5%. It pays a coupon of 9.5% and matures on 30 Dec 2027, a remaining tenure of about 1.3 yr. It is rated AA-, a high credit-safety grade. Jiraaf lists this bond with a minimum investment of ₹51K.
Its 9.5% yield is solid for its risk band, sitting 176th of 265 comparable Corporate bonds. That trails the Corporate median of 10.50% by 1.00 points, so the trade-off is lower yield for whatever else this issuer offers. Against a tenure-matched SBI fixed deposit (6.50%), it pays roughly 3.00 points more - a large gap that only makes sense once you are comfortable with the issuer's credit. Its short 1.3 yr horizon locks the rate for only a few years, limiting reinvestment risk. Paired with its very high safety (AA-) 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 IKF Finance (INE859C07253) at 9.2%, IIFL Samasta (INE413U08093) at 11.5% and Muthoot Capital (INE296G07218) at 11%.
About IKF Finance
IKF Finance Limited is a non-deposit-taking, middle-layer NBFC incorporated in 1991 as IndraKeela Financiers Private Limited and renamed IKF Finance in 1998. Vehicle finance is the core business, built over nearly three decades and made up largely of used commercial vehicles, cars and multi-utility vehicles, construction equipment, two- and three-wheelers and tractors; SME lending and loans to other NBFCs make up the balance. The company is promoted by VGK Prasad and managed by his daughter K. Vasumathi Devi, with Norwest Capital, Motilal Oswal Alternates and Creador holding significant minority stakes. Its wholly owned subsidiary IKF Home Finance Limited offers home loans and loan against property. The portfolio is concentrated in South India, with Andhra Pradesh and Telangana alone accounting for 46% of consolidated AUM as of September 2025, and the group operated 199 branches across nine states at that date.
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 9.5% headline is a pre-tax number. Here is the same bond seen from each slab, on ₹1,00,000 held for the remaining 1.3 yr.
| Your tax slab | Post-tax yield | ₹1,00,000 becomes |
|---|---|---|
| No tax (income under the exemption limit) | 9.50% | ₹1,12,518 |
| 5% slab | 9.03% | ₹1,11,884 |
| 20% slab | 7.60% | ₹1,09,988 |
| 30% slab | 6.65% | ₹1,08,727 |
At a 9.5% coupon, ₹1,00,000 of face value pays about ₹9,500 of interest a year, under the ₹10,000 Section 193 threshold, so no TDS is withheld.
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 1.3 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 AA- credit risk is the reason for the gap.