NSE / BSE listed corporate & PSU bonds

BondWise Terminal

Government of India Indian Bond Certificate

How bonds work

60-second guide

Think of a bond as a friendly loan, just flipped around โ€” instead of you borrowing from a bank, a company or the government borrows from you. They need cash now, you have some to spare, so you hand it over on one condition: they pay you back later, plus a little something extra for trusting them with your money. That's really all a bond is. Here's how it plays out in four steps.

01

You lend money

Buy a bond and you're lending your cash to a company or the government for a set amount of time.

02

You get paid to wait

Every year they hand you back a slice called the coupon โ€” like rent, but for your money.

03

You get it all back

On the maturity date, the full amount you lent โ€” the face value โ€” lands back in your pocket.

04

...if they can pay

Some borrowers are safer bets than others. That's exactly what the credit rating below tells you.

๐Ÿงช Try it yourself

Slide the numbers and watch what your money actually does.

Interest paid to you, every single yearโ‚น800
Total interest over the whole periodโ‚น4,000
Total cash back at the end (interest + your original amount)โ‚น14,000

๐Ÿ›ก๏ธ Pick a credit rating

A rating is a report card for how likely the borrower is to actually pay you back. Tap one to see what it means for your money.

Tap a rating above to see what it actually means.

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Rated AA or higher

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