A pass-through certificate (PTC) is a debt security backed by a pool of loans or receivables. A lender sells the pool to a trust, the trust issues certificates to investors, and the repayments that borrowers make on the loans are passed through to the certificate holders. This guide explains how PTCs work in India, who issues them, how to invest and what to weigh up, with examples from the issuers on Bond Interpretation.
Examples as of 4 Nov 2026 (snapshot 20261104-2030). Information, not investment advice.
What does "pass-through" mean?
With an ordinary bond or NCD, a company borrows money and pays interest from its own income. With a PTC, the money comes from a defined pool of loans: gold loans, vehicle loans, microfinance loans, home loans or trade receivables. Each month the borrowers repay part of their loans; the trust collects these payments and passes them through to the PTC holders, after fees. That is why PTCs usually repay part of the principal every month and why the amount paid can change from month to month.
The process of turning a pool of loans into tradable certificates is called securitisation. PTCs are one kind of securitised debt instrument.
How are PTCs issued?
- The originator picks a pool. A lender selects loans that meet set criteria (type, age, repayment record). RBI's securitisation rules require the loans to have been held for a minimum period and the originator to keep a minimum share of the risk.
- The pool is sold to a trust. A trustee company sets up a securitisation trust (a special purpose vehicle). The originator sells the pool to the trust in a "true sale", so the loans no longer belong to the originator.
- Protection is added. Credit enhancement absorbs the first losses: a cash deposit kept with the trust, loans worth more than the PTCs (over-collateralisation), the extra interest the loans earn over the PTC coupon, or junior tranches that take losses before the senior ones.
- A rating agency rates the structure. The credit rating depends on the pool and the protection, and carries the suffix "(SO)" for structured obligation, for example "AA (SO)".
- The trust issues the PTCs. Each series or tranche gets its own ISIN (for example Series A1 for the senior tranche). Most are placed privately with institutions; some are listed on BSE or NSE.
- Collections are passed through. The originator usually keeps servicing the loans: it collects repayments and hands them to the trust, which pays the PTC holders in the order the documents set out (the "waterfall").
Who issues PTCs?
| Party | Role |
|---|---|
| Securitisation trust (SPV) | The legal issuer of the PTCs. It holds the pool and has an ISIN issuer code of its own, which is why PTCs appear under trust names such as "Dexter Trust 2026" or "Liquid Gold Series 23". |
| Originator | The lender whose loans are in the pool: NBFCs, housing finance companies, microfinance lenders, banks and fintech lenders. It usually services the pool and keeps part of the risk. |
| Trustee | A SEBI-registered trustee company that sets up the trust and acts for the PTC holders. |
| Arranger or platform | Structures the deal and finds investors. Some platforms run a series of schemes under one brand, such as the Amplio schemes of Crestfort Technologies. |
| Rating agency | Rates each tranche and reviews it as the pool pays down. |
| Investors | Mostly banks (which can count some pools towards priority-sector lending), mutual funds and other institutions; individuals through listed PTCs. |
Examples on Bond Interpretation
Each company below has one page that lists all its pass-through schemes, with the ISINs, coupons, maturities and the originator of each pool.
- Fairvalue Insuretech Private Limited: 4 schemes (Linked Investment Trust 4, Linked Investment Trust 6, Linked Investment Trust 7 and Linked Investment Trust 8), 66 outstanding PTCs.
- Veritas Finance Limited: originator of 18 outstanding PTCs in Indigo 023, Vajra 003 Trust, Vajra 004 Trust, Vajra 006 Trust and 9 more, listed next to its own bonds.
- Muthoot Capital Services Limited: originator of 17 outstanding PTCs in Atreides 2W 2024, Indigo 029, Indigo 041, Indigo 043 and 8 more, listed next to its own bonds.
- IIFL Finance Limited: originator of 13 outstanding PTCs in Liquid Gold Series 8 Dec 2024, Liquid Gold Series 9, Liquid Gold Series 10, Liquid Gold Series 11 and 6 more, listed next to its own bonds.
- Navi Finserv Limited: originator of 10 outstanding PTCs in 2024 PL Damian, 2024 PL Dan, 2024 PL Darwin, 2024 PL Diana and 4 more, listed next to its own bonds.
- Dmi Finance Private Limited: originator of 8 outstanding PTCs in Plum 24-6, Plum24-7, Plum 24-11, Plum25-1 and 4 more, listed next to its own bonds.
- Shriram Finance Limited: originator of 8 outstanding PTCs in Sansar Aug 2024 Vii Trust, Sansar Aug 2024 V Trust, Sansar Jan 2025 Trust, Sansar June 2024 Trust and 4 more, listed next to its own bonds.
- Arth Padarth Factors and Finance Private Limited: 5 schemes (Receivable Securitisation Trust 11, Receivable Securitisation Trust 12A, Receivable Securitisation Trust 14, Receivable Securitisation Trust 15 and 1 more), 7 outstanding PTCs.
- Crestfort Technologies Private Limited: 6 schemes (Amplio Red Series 1, Amplio Red Series 45, Amplio Red Series 46, Amplio Red Series 47 and 2 more), 7 outstanding PTCs; pools originated by Gangabase Barter Private Limited.
- Five-Star Business Finance Ltd: originator of 7 outstanding PTCs in Dhruva Xxi 2023, Dhruva Xxii, Dhruva Xxiii, Dhruva Xxiv and 1 more, listed next to its own bonds.
In all, 83 pages on Bond Interpretation list 307 outstanding pass-through certificates.
| Company or trust | Schemes | Outstanding PTCs |
|---|---|---|
| Fairvalue Insuretech Private Limited | Linked Investment Trust 4, Linked Investment Trust 6, Linked Investment Trust 7 and Linked Investment Trust 8 | 66 |
| Veritas Finance Limited | Indigo 023, Vajra 003 Trust, Vajra 004 Trust, Vajra 006 Trust, Vajra 007 Trust and 8 more | 18 |
| Muthoot Capital Services Limited | Atreides 2W 2024, Indigo 029, Indigo 041, Indigo 043, Indigo 049 and 7 more | 17 |
| IIFL Finance Limited | Liquid Gold Series 8 Dec 2024, Liquid Gold Series 9, Liquid Gold Series 10, Liquid Gold Series 11, Liquid Gold Series 12 and 5 more | 13 |
| Navi Finserv Limited | 2024 PL Damian, 2024 PL Dan, 2024 PL Darwin, 2024 PL Diana, 2024 PL Groot and 3 more | 10 |
| Dmi Finance Private Limited | Plum 24-6, Plum24-7, Plum 24-11, Plum25-1, Plum25-3 and 3 more | 8 |
| Shriram Finance Limited | Sansar Aug 2024 Vii Trust, Sansar Aug 2024 V Trust, Sansar Jan 2025 Trust, Sansar June 2024 Trust, Sansar Trust July 2023 II and 3 more | 8 |
| Arth Padarth Factors and Finance Private Limited | Receivable Securitisation Trust 11, Receivable Securitisation Trust 12A, Receivable Securitisation Trust 14, Receivable Securitisation Trust 15 and Receivable Securitisation Trust 16 | 7 |
| Crestfort Technologies Private Limited | Amplio Red Series 1, Amplio Red Series 45, Amplio Red Series 46, Amplio Red Series 47, Amplio Red Series 49 and 1 more | 7 |
| Five-Star Business Finance Ltd | Dhruva Xxi 2023, Dhruva Xxii, Dhruva Xxiii, Dhruva Xxiv and Indigo 022 | 7 |
| Indiabulls Housing Finance Ltd (INE0GN5) | India Retail Pool 22, Mortgage LAP Securitization Trust and Retail Securitisation Opportunities Trust | 7 |
| Whizdm Finance Private Limited | Fortis 01 2026, Topaz 04 2026 and Truefort 05 2026 | 6 |
| Farmart Service Private Limited | Agri Xchng5 2025, Agri Xchng7 2026, Agri Xchng8 2026, Agri Xchng9 2026 and Agri Xchng 2025 | 5 |
| HDFC Bank Limited | India Universal Trust Al1 and India Universal Trust Al2 | 5 |
| Akara Capital Advisors Private Limited | Donnier - 2025, Ironwell-2025, Loanx Silverbell Mar 2025 and Platinum Well-2026 | 4 |
| Ascend Bizcap Private Limited | Magnatron November 2025 and Magnetron Aug 2025 | 4 |
| Fairvalue Inusretech Private Limited | Linked Investment Trust 2 | 4 |
| Purelearn Eduinfra Jakkasandra Private Limited | Rua India Securitisation Trust 2026-1 and Rua India Securitisation Trust 2026-2 | 4 |
| Rbl Bank Ltd | Stellar 1.1 2024, Stellar 1.3 2024 and Stellar 1.5 2024 | 4 |
| Vedika Credit Capital Limited | Aritra Growth Aqua March 2025, Indigo 050, Loanx Velvet Ash Feb 2025 and Loanx Velvet Ash May 2025 | 4 |
| Aristo Securities Private Limited | Ev Mobility Trust September 2025, Green Mobility September 2025 and Gripx Areca May 2025 | 3 |
| Connect Residuary Private Limited | Grip Nva Asset 2, Prosperity Asset 5 Trust and Prosperity Asset 11 Trust | 3 |
| IIFL Samasta Finance Limited | Frieza 06 2025, Picasa 06 2025 and Raven 03 2025 | 3 |
| Ikf Finance Limited | Universe Trust Dec 2024 and Universe Trust Jul 2025 | 3 |
| Irep Credit Capital Private Limited | Loanx Ironwood Dec24, Loanx Ironwood Feb 2025 and Loanx Ironwood Jan25 | 3 |
| Muthoot Fincorp Limited | Dexter Trust 2026, Ganymede 2026 and Seed Muubl June 2026 | 3 |
| Navadhan Capital Private Limited | Kratos Trust Feb 2026, Loanx Nemesia Nov 2025 and Trinity Trust Sep 2025 | 3 |
| Vfs Capital Limited | Loanx Viburnum June 2025 and Loanx Viburnum Mar 2025 | 3 |
| Best Capital Services Limited | Loanx Bramble Jul 2025 and Loanx Bramble Sep 2025 | 2 |
| Capfloat Financial Services Private Ltd | Scar - Ptc Jan 2025 and Stark-Ptc Nov 2024 | 2 |
| Capri Global Capital Limited | Samriddhi Trust and Samriddhi Trust Series 3 | 2 |
| Dvara Kshetriya Gramin Financial Services Private Limited | Duckett 03 2026 and Indigo 051 | 2 |
| Kaabil Finance Private Limited | Loanx Kalmia Apr 2025 and Loanx Kalmia Feb-2026 | 2 |
| LIC Housing Finance Limited | India Residential Mortgage Trust 2025 01 | 2 |
| Neogrowth Credit Private Limited | Sagittarius Trust February 2025 and Scorpio Trust April 2025 | 2 |
| Satin Finserv Limited | Horizon 2025 and Leonard 03 2024 | 2 |
| Save Financial Services Private Limited | Kiplatform Divine March 2024 and Loanx Salvia Mar 2025 | 2 |
| Sikka Ports & Terminals Ltd | Shivshakti Securitisation Trust and Siddhivinayak Securitisation Trust | 2 |
| Up Money Limited | Currus 12 2024 and Gripx Sage May 2025 | 2 |
| Vriksh Advisors Private Limited | Grip Prosperity Asset 1 and Leasex Valerian Jan 25 | 2 |
| AAVAS Financiers Limited | Prime Home Loan Trust IV | 1 |
| Amu Leasing Private Limited | Loanx Alder Apr 2025 | 1 |
| Arthan Finance Private Limited | Jade 03 2024 | 1 |
| Bwda Finance Limited | Gripx Birch May 2025 | 1 |
| Clix Capital Sevices Private Limited | Nashville 03 2024 | 1 |
| Early Salary Services Private Limited | Granger 04 2026 | 1 |
| Equentia Financial Service Private Limited | Tr Merlin 2027 | 1 |
| Exclusive Leasing and Finance Limited | Corbett 03 2026 | 1 |
| Fusion Finance Limited | Indigo 044 | 1 |
| Grihum Housing Finance Limited | Affordable Housing Rmbs Trust - I | 1 |
| Indifi Capital Private Limited | Lyanna Trust 2026 | 1 |
| Jamnagar Utilities & Power Private Limited | Radhakrishna Securitisation Trust | 1 |
| Keertana Finserv Limited | Loanx Knotweed Jun 2025 | 1 |
| Krazybee Services Limited | Shanks 01 2025 | 1 |
| Piramal Capital & Housing Finance Limited | Swayam Trust May 24 | 1 |
| Rentasset Initiatives Private Limited | Prosperity Asset 8 Trust | 1 |
| Satya Microcapital Limited | Harbor 2025 | 1 |
| Save Microfinance Private Limited | Gripx Malcom Trust June 2025 | 1 |
| Seeds Fincap Private Limited | Tauros 2026 | 1 |
| Shiksha Financial Services India Private Limited | Loanx Sabal May 2025 | 1 |
| Sk Finance Limited | Naomi 05 2024 | 1 |
| Svaryu Energy Limited | Alpha Yield O23 | 1 |
| Svasti Microfinance Private Limited | Loanx Sorrel Jul 2025 | 1 |
| Velicham Finance Private Limited | Loanx 07 2024 Trust | 1 |
| India Infoline Finance Limited | 0 | |
| Linked Investment Trust 9 | Linked Investment Trust 9 | 10 |
| India Endowment Policy Trust | India Endowment Policy Trust | 9 |
| Sansar Trust Dec 2022 | Sansar Trust Dec 2022 | 2 |
| India Retail Pool 21 | India Retail Pool 21 | 1 |
| Indigo 009 | Indigo 009 | 1 |
| Lakshminarayan Securitisation Trust | Lakshminarayan Securitisation Trust | 1 |
| Matrix 2026 | Matrix 2026 | 1 |
| Sbl Uma 1223 | Sbl Uma 1223 | 1 |
| Stitch Trust 2026 | Stitch Trust 2026 | 1 |
| Aurous Trust | 0 | |
| India RE 2019 TrustSecuritised Debt Instruments being Pass Through Certificate evidencing beneficial interest in the rec | 0 | |
| India Re Opportunities TrustSenior PTCs having a face value of Rs. 1,00,000/- each and evidencing beneficial interest in certain loan receivables originated by Dewan Housing Finance Corporation Limited | 0 | |
| Mobil Trust (INE0C3F) | 0 | |
| Mobil Trust (INE0C3G) | 0 | |
| Orelia Trust Jan 2020Securitised Debt Instruments being Pass Through Certificate evidencing beneficial interest in the r | 0 | |
| PL Securitisation Trust VIII Dec 19Securitised Debt Instruments being Pass Through Certificate evidencing beneficial int | 0 | |
| Secure SME Trust October 2019Securitised Debt Instruments being Pass Through Certificate evidencing beneficial interest | 0 | |
| Secure Trust July 2019Securitised Debt Instruments being Pass Through Certificate evidencing beneficial interest in the | 0 |
How to invest in pass-through certificates
- Open a demat account. PTCs are held in demat form like other bonds.
- Find listed PTCs. Listed PTCs can be bought on the BSE and NSE debt segments through a broker, when there is a seller, or through SEBI-registered online bond platforms that offer them. Most PTCs are placed privately with institutions and never reach individuals.
- Read the documents. The offer document or information memorandum describes the pool, the credit enhancement, the payment waterfall and the events that change it. The rating rationale explains what the agency assumed about losses and prepayments.
- Check the pool and the originator. Look at the type of loans, their past collection record, how much credit enhancement is left and the originator's own standing as servicer. The issuer page of the originator on this site lists its own bonds and ratings.
- Plan for changing cash flows. Monthly payments include principal, and borrowers who repay early shorten the PTC. Selling before maturity may be hard, so invest money you can leave until the final payment.
Pros and cons of pass-through certificates
Pros
- Often pay more than bonds with the same rating, because they are more complex and less liquid.
- Backed by a specific pool, held by a trust apart from the originator's other assets.
- Credit enhancement takes the first losses before senior PTC holders.
- Regular, usually monthly, payments of interest and principal.
- Short to medium terms, and exposure to many small borrowers rather than one company.
Cons
- Payments depend on the borrowers in the pool; if defaults exceed the credit enhancement, PTC holders lose money.
- Cash flows vary: early repayments return money sooner and must be reinvested, often at lower rates.
- Little trading, so selling before maturity can be difficult or costly.
- Complex documents, and less public information than for listed companies.
- The originator usually services the pool, so its troubles can disrupt collections.
- Higher minimum investments than many retail NCDs, and no deposit insurance.
PTCs and NCDs compared
| Pass-through certificate | NCD of the same lender | |
|---|---|---|
| Issued by | A securitisation trust | The company itself |
| Paid from | Collections from one pool of loans | All of the company's income and assets |
| Principal | Usually repaid every month as the pool pays down | Usually repaid at maturity |
| Rating | Of the structure, with "(SO)" | Of the company |
| If the lender fails | The pool stays with the trust; servicing may be disrupted | NCD holders claim against the company |
Questions and answers
What is a pass-through certificate (PTC)?
A PTC is a debt security issued by a securitisation trust. The trust buys a pool of loans or receivables from a lender (the originator) and passes the repayments it collects from the borrowers to the PTC holders, usually every month.
Who issues pass-through certificates in India?
Legally, a securitisation trust (a special purpose vehicle) set up and managed by a trustee company issues the PTCs. The loans come from an originator: an NBFC, a housing finance company, a microfinance lender, a bank or a fintech lender. Securitisation of loans by banks and NBFCs follows the Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021; listed PTCs also follow SEBI's regulations for securitised debt instruments.
Is a PTC the same as an NCD of the originator?
No. An NCD is the company's own debt, paid from all its income. A PTC is paid only from the pool of loans held by the trust and its credit enhancement. If the originator gets into trouble, the pool is meant to stay with the trust; if the pool performs badly, PTC holders can lose money even when the originator is healthy.
Why do PTC ratings have "(SO)" after them?
"SO" stands for structured obligation. SEBI requires rating agencies to add it when the rating depends on a structure, such as a pool of loans with credit enhancement, rather than only on the issuer's own strength.
Can individuals invest in PTCs?
Most PTCs are bought by banks, mutual funds and other institutions through private placements. Individuals can buy listed PTCs through a demat account, on the exchanges or through SEBI-registered online bond platforms that offer them. The minimum investment is set by the offer document and is often higher than for retail NCDs.
How is the income from PTCs taxed?
The income of a securitisation trust passes through to the investors and is taxed in their hands; the trust deducts tax at source where the law requires it. Tax rules change with each budget, so check the current rules or ask a tax adviser.
Sources: Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021; SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008; issuer and ISIN records from NSDL India Bond Info, BSE and NSE. This page explains how PTCs work; it does not recommend any security.
