A cumulative NCD pays no interest during its life. Interest is compounded and paid with the principal on the maturity date, so the investor receives one larger amount at the end.
For example, ₹1,000 in a three-year cumulative NCD at 10% compounded yearly pays about ₹1,331 at maturity. The offer document states the exact amount payable per NCD on maturity; that figure, not the rate, is what the issuer is bound to pay.
Cumulative NCDs suit investors who do not need regular income. The risk is concentrated at the end: if the issuer defaults, nothing has been received yet. Interest may still be taxable as it accrues, depending on how you account for it; check with a tax adviser.
Cumulative NCD: issuers on Bond Interpretation
190 outstanding bonds of this kind from 68 issuers are on Bond Interpretation. Issuers with the most:
- ICL Fincorp Limited 19 bonds
- Sammaan Capital Limited 17 bonds
- Edel Finance Company Limited 14 bonds
- ECap Equities Limited 11 bonds
- Adani Enterprises Limited 8 bonds
- IIFL Finance Limited 8 bonds
- Cholamandalam Investment and Finance Company Limited 6 bonds
- IIFL Home Finance Limited 6 bonds
- Kolte-Patil Developers Ltd 5 bonds
- Power Finance Corporation Limited 5 bonds
- 360 ONE Prime Limited 4 bonds
- Aditya Birla Capital Limited 4 bonds
- Claypond Capital Partners Private Limited 4 bonds
- Marwadi Chandarana Intermediaries Brokers Private Limited 4 bonds
- Assetz Industrial Parks Private Limited 3 bonds
Data as of 5 Nov 2026 (snapshot 20261105-2032). Methodology and sources
Related
Related terms: Zero coupon bond · Coupon rate · NCD (non-convertible debenture) · Yield to maturity (YTM)
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
