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What is a bond?A bond is a loan made by an investor to an entity (like a government or corporation) in exchange for periodic interest payments and repayment of the principal at maturity. Bonds are generally less risky than stocks but still carry some risks.What is a bond rating?A bond rating is an assessment of the issuers creditworthiness, usually assigned by rating agencies (e.g., CRISIL or CARE). Higher-rated bonds (A and above) are considered safer, while lower-rated bonds (BB or lower) carry more risk.Why should I invest in bonds?Bonds can provide a steady income through interest payments and are generally considered a lower-risk investment compared to stocks.Is there an official calculator by SEBI?Yes, you can find it here - https://investor.sebi.gov.in/calc/bond.htmlAre bonds safe to invest in?Bonds are generally safer than stocks, but they still carry risks, such as the issuer failing to repay the loan. At Stable Money, we carefully pick bonds that have minimal risk while maximizing returns. As a show of trust, Stable Money and/or the founders have personally invested in each bond that we sell on our platform.What is a bond?A bond is a loan made by an investor to an entity (like a government or corporation) in exchange for periodic interest payments and repayment of the principal at maturity. Bonds are generally less risky than stocks but still carry some risks.What is a bond rating?A bond rating is an assessment of the issuer’s creditworthiness, usually assigned by rating agencies (e.g., CRISIL or CARE). Higher-rated bonds (A and above) are considered safer, while lower-rated bonds (BB or lower) carry more risk.How does bond tenure and maturity work?Each bond matures on a fixed date. This means that the tenure for which you are buying the bond can change depending on when you buy it. For example if a bond matures on Dec 10, 2024 and you buy it on Nov 10, 2024 the tenure of the bond will be 1 month. Similarly, if you buy it on Oct 10, 2024 the tenure of the bond will be 2 months.What is a senior secured bond?Secured means the bond issuer has pledged some collateral which will be used to pay bond holders in case of any default.
Senior means the bond holder is given priority for repayment over other bond holders in case of default.
All bonds on Stable Money are Senior Secured bonds.What are the risks in debt instruments?Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/or default in payment. Read all the offer-related documents carefully.Can I sell my bond before it matures?Bonds are usually illiquid in nature and not actively traded. You should buy bonds with the intent to hold them till maturity. However, we are actively working towards making each bond instantly sellable on our platform. Keep checking back to stay updated.Are there any fees for buying bonds on Stable Money?No, there are 0 transaction fees involved in buying bonds on Stable Money.How does bond tenure and maturity work?Each bond matures on a fixed date. This means that the tenure for which you are buying the bond can change depending on when you buy it. For example if a bond matures on Dec 10, 2024 and you buy it on Nov 10, 2024 the tenure of the bond will be 1 month. Similarly, if you buy it on Oct 10, 2024 the tenure of the bond will be 2 months.Can I sell my bond before it matures?Bonds are usually illiquid in nature and not actively traded. You should buy bonds with the intent to hold them till maturity. However, we are actively working towards making each bond instantly sellable on our platform. Keep checking back to stay updated.Are there any fees for buying bonds on Stable Money?No, there are 0 transaction fees involved in buying bonds on Stable Money.Would there be any TDS implications on redemption of corporate bonds?No TDS shall be applicable on redemption by a resident investor.What happens if a bond issuer cannot repay the investment?All bonds on Stable Money are Senior Secured bonds. Secured means that there is some collateral pledged against the bonds which will be liquidated to pay you in case of default. Senior means your repayment is given priority over other bond holders in case of default. However, it might still be possible that you might not get your money back in case of default.Are bonds safe to invest in?Bonds are generally safer than stocks, but they still carry risks, such as the issuer failing to repay the loan. At Stable Money, we carefully pick bonds that have minimal risk while maximizing returns. As a show of trust, Stable Money and/or the founders have personally invested in each bond that we sell on our platform.How is interest income taxed on corporate bonds?The issuer deducts 10% TDS on all interest income earned.
The interest or coupon received from corporate bonds is taxable under the head "Income from Other Sources" and is taxed at the applicable individual slab rate of the Investor
If the total income of the resident investor is below the taxable limit, a self declaration form (ie, Form 15G/15H) may be submitted with the bond issuer for non-deduction of TDS.Why should I invest in bonds?Bonds can provide a steady income through interest payments and are generally considered a lower-risk investment compared to stocks.Would there be any TDS implications on redemption of corporate bonds?No TDS shall be applicable on redemption by a resident investor.What is a senior secured bond?Secured means the bond issuer has pledged some collateral which will be used to pay bond holders in case of any default. Senior means the bond holder is given priority for repayment over other bond holders in case of default. All bonds on Stable Money are Senior Secured bonds.Is there an official calculator by SEBI?Yes, you can find it here - https://investor.sebi.gov.in/calc/bond.htmlHow is interest income taxed on corporate bonds?The issuer deducts 10% TDS on all interest income earned. The interest or coupon received from corporate bonds is taxable under the head "Income from Other Sources" and is taxed at the applicable individual slab rate of the Investor. If the total income of the resident investor is below the taxable limit, a self declaration form (ie, Form 15G/15H) may be submitted with the bond issuer for non-deduction of TDS.What are the risks in debt instruments?Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/or default in payment. Read all the offer-related documents carefully.What happens if a bond issuer cannot repay the investment?All bonds on Stable Money are Senior Secured bonds. Secured means that there is some collateral pledged against the bonds which will be liquidated to pay you in case of default. Senior means your repayment is given priority over other bond holders in case of default. However, it might still be possible that you might not get your money back in case of default.
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