HUDCO – Housing And Urban Development Corporation of India – A Govt Of India Enterprise – have come up with an Tax Free Bonds issue which will open of September 17, 2013 and will available till Oct 14, 2013.
Credit rating of the issue is AA+ by CARE & IRRPL.
Interest rates:For retail Individual Investors
| Tranche1 / Series | 1A | 2A | 3A |
| Tenure Yrs | 10 | 15 | 20 |
| Interest Rate | 8.39% | 8.76% | 8.74% |
| Interest payment frequency | Annual | Annual | Annual |
Min investment required under this issue is Rs.5000/- or 5 bonds of face value 1000/-.
Highest interest rate offered by HUDCO tax free bonds is 8.76% which can be considered to be good for high tax bracket investor.Interest shall be paid annually so partial liquidity is also available & investors who wish to safely lock in their investment for long term can think to invest in these issues.
Resident individuals as well NRIs can apply for Tax free bond issues.
