Dewan Housing Finance Corp Ltd (DHFL) has come out with public issue of non-convertible debentures (NCD) offering up to 9.10% interest rate. The issue opens on May 22 and closes on June 4, 2018.
DHFL is a deposit-taking housing finance company and among the 50 biggest financial companies in India. It is the second housing finance company to be established in the country with focus on low and medium income housing finance in Tier 2 & 3 cities.
Also Read – Know NCD – Investment Tips, TDS and Taxation
There are 7 options of investment in DHFL NCD.
Series VII offers floating interest rate benchmarked to MIBOR (Mumbai Inter-Bank Offered Rate). As of May 17, 2018 this was 6.05%. So as of today the interest rate on offer would be 8.21% (6.05% + 2.16%). You can check latest MIBOR rates here.
Senior Citizens shall be eligible for an additional incentive of 0.10% p.a.
Retail Investors and HNIs who hold the NCD till maturity shall be eligible for a one-time additional incentive of 0.50%, 0.70%, 1.00% and 0.50% for Series II, Series III, Series IV and Series VI respectively, payable along with last interest payment.
Also Read: 25 Tax Free Incomes & Investments in India
This issue is open to all Indian residents, HUFs and Institutions.
Retail Investors can apply for allotment of NCDs in both physical form or Demat Form.
NRIs cannot apply for this NCD.
Also Read: Highest Interest Rate on Recurring Deposits
You can apply online by ASBA facility provided by banks. It’s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work.
In case you don’t want to do it online, you can download the application form from company site or Financial Institutions and submit to collection centers.
If you plan to invest in this issue, do it early as most good NCD issues are over-subscribed before the end date.
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View Comments
Any tds on the annual interest?
Not if invested in demat form
Is extra 0.10% for Sr. citizens applicable for MIBOR linked option too?
And, what will be the tax treatment if you hold till maturity and interest is received monthly/annually?
yes.
The interest would be added to income and taxed at income tax slab rate.
How to buy these bonds in offline method?
how to go for redemption if the firm close down.
regards
neelam
When filling the form select offline rather than demat. In case the firm closes down, there are high chances that you would loose your money or at least a part of it. However DHFL as of today is in top 50 financial firms but no one knows the future.
Hello Amit,
I am having an account with SBI but i could not see any option to apply for NCD using ASBA. Could you please guide me through.
If you are searching for DHFL NCD, the option is enabled a day before or on the day NCD issue opens