There is no limit of investment. The bonds are taxable and Non-Resident Indians are not allowed to invest. The bonds are not transferable in the secondary market and have a maturity period of 7 years. When an investor chooses a half yearly interest option the interest is paid on 1st February and 1st August every year. If a cumulative option is selected, the accumulated interest along with the principal is paid on the maturity date.
|Issuer||Fixed interest rate||Maturity date||Early payment date(if any)||Interest dates||Unit size of each bond|
|Government of India- Taxable bonds Sovereign rated||7.75%||7 Years||After 4 yrs/ 5/6 yrs.based on ages-80,70,60 years of the investor||Half yearly for non-cumulative. On maturity for cumulative option||Rs.1000 and in multiples of Rs.1000|