Debentures

In finance, debentures are a type of long-term debt instrument issued by companies or governments to raise capital. They are essentially loans taken by an organization, where the debenture holders become creditors and are promised a fixed rate of interest in return.

Types of Debentures

  • Secured Debentures
  • Unsecured Debentures
  • Convertible Debentures
  • Non-Convertible Debentures (NCDs)
  • Redeemable Debentures
  • Irredeemable Debentures