Debentures

byPaytm Editorial TeamLast Updated: December 29, 2025

Meaning & Definition

Debentures are debt instruments issued by companies to borrow money from the public. When you invest in debentures, you lend money to the company and receive fixed interest at regular intervals.

Key Points

  • Fixed interest income
  • Issued by companies
  • Can be secured or unsecured
  • Lower risk than equity

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