Home grown financial companies have been tapping the NCD route to mop up funds. Of these 3 companies are opening their NCD issues today i.e. L&T Finance, Magma Fincorp and Muthoot Homefin. And the offers are lucrative given the likely rate cut in interest rates at a future date, so investors with surplus cash resources can lock into higher rates now.

Here are some of the NCD issues that are on offer for investors to consider:

NCD of Shriram City Union Finance opened last week. Magma Fincorp is offering a coupon rate of 10.25% and 10.5% for 3- and 5-year tenure, respectively. Muthoot Homefin will give 9.5% and 10% respectively for 24 months and 60 months.

All the options are available with monthly, annual and cumulative pay out option. The minimum application amount i .. Rs 10,000. Thereafter, investors can invest in multiples of Rs 1,000.

But investors wishing to take on some NCD advantage at the moment, need to carefully assess the credit profile of the companies after the last year's IL&FS crisis whose after-effects are still imminent.

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