As RBI is reducing the interest rates for fixed deposit schemes, people are running after tax-free bonds. Previously issued NTPC tax free bonds was a huge hit as the subscription was closed in the first day itself. On the same path, PFC Tax-Free Bonds 2015 is also going to issue from 5th October 2015 and will close on 9th October. In this article I will share about PFC Tax-Free Bonds 2015 Review, benefits and more information.
PFC Tax-Free Bonds 2015
Let’s discuss about Power Finance Corporation (PFC) Ltd first. PFC is a Navratna Company and a leading power sector, public financial institution and a non-banking financial company providing funding and non-fund based support for the development of the Indian power sector. The company offers various financial products, namely Project Term Loan, Lease Financing, Direct Discounting of Bills, Short Term Loan, and Consultancy Services, etc. for various Power projects in Generation, Transmission, and Distribution sector as well as for Renovation & Modernization of existing power projects.
Features of PFC Tax-Free Bonds 2015
- PFC Tax-Free Bonds 2015 will open for subscription on 5th of October 2015 and will close by 9th of October 2015. But in case subscriptions fulfilled before 9th, it will be closed on that moment only.
- This bond is rated AAA by CRISIL, ICRA, and CARE for the fiscal year 2015 only.
- Coupon Rates for Retail Investors are 7.36% for 10 Years, 7.52% for 15 Years and 7.60% for 20 Years.
- The interest will be paid annually and there will be no TDS applicable.
- NRI people can invest in PFC Tax-Free Bonds 2015 on non-repatriation basis only.
- The unit price of PFC Tax-Free Bonds 2015 is Rs 1000 and min investment amount Rs 5000.
- One can invest Rs 10 lakh maximum. The funds will be issued first come first basis.
- One can hold the PFC Tax-Free Bonds 2015 units in demat account as well as physical form also.
Should I invest in PFC Tax-Free Bonds 2015?
PFC is a government company and the records are no doubt good. I think if I have to answer this question in single line, then I will say if you are investing for a long term period like 10-15 years and you are coming under highest income tax bracket then you should invest in PFC Tax-Free Bonds 2015.