Muthoot MCred Bonds: ISIN, YTM, Rating & Key Risks Explained
Quick Answer
Muthoot MCred bonds are NCDs issued by Muthoot MCred Limited (formerly Muthoottu Mini Financiers Limited) — a Kerala-based NBFC established in 1921, part of the Muthoottu Group, focused on gold loans and microfinance. Two actively traded ISINs covered in this article: INE101Q07BX1 (9.30% coupon, matures 17 June 2028) and INE101Q07BZ6 (9.65% coupon, matures 25 August 2028). Both carry an indicative YTM of approximately 11.0%–11.1% and are rated ICRA A / Stable. Both are secured NCDs with monthly coupon payments. Muthoot MCred Limited is a separate entity from Muthoot Finance (George Muthoot Group) and Muthoot Microfin — investors should verify the exact issuer name before investing.
Introduction
Muthoot MCred bonds have attracted investor attention for offering 9.30%–9.65% coupon rates with an indicative YTM of approximately 11.0%–11.1%, well above bank FD rates and meaningfully above AAA-rated corporate bonds available in India in 2026. This yield reflects the issuer's A rating from ICRA — firmly within the investment-grade spectrum, with adequate credit safety, while offering a yield premium over higher-rated alternatives.
This article provides a complete, factual, educational breakdown of two actively traded Muthoot MCred bond series ISIN INE101Q07BX1 (9.30% coupon, Jun 2028) and ISIN INE101Q07BZ6 (9.65% coupon, Aug 2028) covering their key parameters, credit rating context, the issuer's business profile, and the risks investors should evaluate. It also clarifies an important point that regularly causes investor confusion: Muthoot MCred Limited is not the same entity as Muthoot Finance Limited or Muthoot Microfin Limited.
All content is educational and does not constitute investment advice.
What Is Muthoot MCred Limited?
Muthoot MCred Limited (formerly Muthoottu Mini Financiers Limited) is an RBI-registered non-banking financial company headquartered in Kochi, Kerala. The company was established in 1921 and incorporated as a company in 1998, operating under the Muthoottu Group — one of Kerala's oldest business conglomerates.
The company was rebranded from Muthoottu Mini Financiers to Muthoot MCred Limited as part of a broader corporate identity refresh. Its core business includes:
● Gold loans — the primary product, forming the majority of the loan portfolio; secured against gold ornaments and jewellery
● Microfinance loans — lending to low-income and underserved borrowers, particularly women, through joint liability group structures
● Insurance distribution and money transfer services — ancillary financial services offered through its branch network
Muthoot MCred operates a network of 970+ branches across 12 states, primarily serving customers in rural and semi-urban markets where access to formal credit remains limited. As of September 2025, the company reported an AUM of approximately Rs 5,495 crore, reflecting steady operational growth.
Muthoot MCred vs Muthoot Finance vs Muthoot Microfin
The Muthoot brand is used by multiple separate, unrelated entities in India's financial services sector. This is one of the most common sources of investor confusion when evaluating Muthoot-branded bonds:
| Entity | Group | Primary Business | Listed? | Credit Rating (indicative) |
|---|---|---|---|---|
| Muthoot Finance Limited | George Muthoot Group (Kerala) | Gold loans — India's largest gold loan NBFC | BSE/NSE listed | AAA (CRISIL) |
| Muthoot MCred Limited (this article) | Muthoottu Group (Kerala) | Gold loans + microfinance | Unlisted (bonds listed on BSE) | A (ICRA) |
| Muthoot Microfin Limited | Muthoot Pappachan Group (Kerala) | Microfinance — women's JLG loans | BSE/NSE listed | A+ (CRISIL) |
| Muthoot Fincorp Limited | Muthoot Pappachan Group (Kerala) | Gold loans | Unlisted (bonds listed) | AA– (CRISIL) |
Muthoot MCred Limited (formerly Muthoottu Mini Financiers) is a separate legal entity from all the above. It belongs to the Muthoottu Group, not the George Muthoot Group or the Muthoot Pappachan Group. Investors should always verify the exact issuer name and ISIN before investing to ensure they are evaluating the correct entity.
Muthoot MCred Bond: Key Details - Two ISINs Covered
| Parameter | ISIN INE101Q07BX1 | ISIN INE101Q07BZ6 |
|---|---|---|
| ISIN | INE101Q07BX1 | INE101Q07BZ6 |
| Issuer | Muthoot MCred Limited | Muthoot MCred Limited |
| Instrument Type | Secured, Rated, Listed, Redeemable NCD | Secured, Rated, Listed, Redeemable NCD |
| Face Value | Rs 10,000 per debenture | Rs 10,000 per debenture |
| Coupon Rate | 9.30% per annum | 9.65% per annum |
| Coupon Type | Fixed | Fixed |
| Coupon Frequency | Monthly | Monthly |
| Allotment Date | 18 March 2026 | — |
| Maturity Date | 17 June 2028 | 25 August 2028 |
| Indicative YTM | ~11.0%–11.1% p.a. | ~11.0%–11.1% p.a. |
| Credit Rating | ICRA A / Stable | ICRA A / Stable |
| Security | Secured | Secured |
| Debenture Trustee | Catalyst Trusteeship Limited | Catalyst Trusteeship Limited |
| Issue Size | Rs 200 crore | — |
| Tax Status | Taxable | Taxable |
*Data sourced as of Q2 2026. YTM is indicative and changes with secondary market price. Always verify current price and YTM on a live platform before any transaction.
What Are ISINs INE101Q07BX1 and INE101Q07BZ6?
INE101Q07BX1 and INE101Q07BZ6 are two separate ISINs — International Securities Identification Numbers — each assigned to a distinct NCD series issued by Muthoot MCred Limited.
Both cover secured, A-rated, monthly-paying NCDs from the same issuer, but with different coupon rates and maturity dates:
● INE101Q07BX1: 9.30% coupon, maturing June 2028 — slightly shorter remaining tenure
● INE101Q07BZ6: 9.65% coupon, maturing August 2028 — slightly higher coupon for the marginally longer tenure
The different coupon rates reflect the standard tenure premium in bond markets — investors demand a slightly higher rate to lock in money for a longer period. Both series trade at similar YTMs (~11%), indicating comparable market pricing for the same underlying credit.
Muthoot MCred Limited has issued numerous NCD series across different time periods, each carrying a distinct ISIN. Investors should always verify that they are reviewing data for the correct ISIN, as different series from the same issuer can have materially different terms.
Muthoot MCred Bond Price and YTM Explained
The face value of both Muthoot MCred NCDs is Rs 10,000 per debenture. Both bonds pay fixed monthly coupons on their respective face values.
The indicative YTM of approximately 11.0%–11.1% is significantly higher than the stated coupon rates of 9.30% and 9.65%. This gap arises because both bonds are currently trading below face value in the secondary market. An investor buying at the current discounted price receives:
● The fixed monthly coupon on face value (9.30% or 9.65%)
● Plus a capital gain at maturity when the bond redeems at the full Rs 10,000 face value
Together, these two components produce the ~11% effective YTM. The ~170–175 basis point gap between the stated coupons and the YTM reflects the ICRA A rating and the market's current pricing of the associated credit risk premium for this issuer.
This gap is notably wider than what is typically seen for AAA or AA-rated bonds, where YTMs and coupons are often much closer reflecting that A-rated instruments carry a larger secondary market risk discount than higher-rated alternatives.
Important: Both ISINs show very similar YTMs (~11%) despite their different coupon rates, because the lower-coupon bond (INE101Q07BX1 at 9.30%) compensates with a larger price discount from face value, while the higher-coupon bond (INE101Q07BZ6 at 9.65%) trades at a smaller discount. Always check live prices on your preferred platform before investing.
Coupon Rate and Monthly Interest Payments
| Investment Detail | Indicative Amount |
|---|---|
| Face Value per NCD | Rs 10,000 |
| Annual Coupon Rate | 9.30% |
| Annual Coupon per NCD | Rs 930 |
| Indicative Monthly Coupon per NCD | Rs 77.50 (approximate) |
| Coupon Type | Fixed |
| Payout Frequency | Monthly |
ISIN INE101Q07BZ6 (9.65% coupon)
| Investment Detail | Indicative Amount |
|---|---|
| Face Value per NCD | Rs 10,000 |
| Annual Coupon Rate | 9.65% |
| Annual Coupon per NCD | Rs 965 |
| Indicative Monthly Coupon per NCD | Rs 80.42 (approximate) |
| Coupon Type | Fixed |
| Payout Frequency | Monthly |
These are indicative, before-tax calculations. Actual coupon credits may vary slightly due to day-count conventions, rounding, and record date mechanics. The coupon rate is not the same as YTM — the coupon is calculated on face value alone.
Muthoot MCred Credit Rating: What ICRA A Means
| Rating Category | Rating Grade | What It Means for Investors |
|---|---|---|
| AAA | Highest safety | Extremely strong capacity to meet obligations; minimal credit risk |
| AA+ / AA / AA– | High safety | Very strong capacity; minor vulnerability to adverse conditions |
| A+ / A / A– | Adequate safety | Strong capacity but more susceptible to adverse economic conditions than higher-rated issuers; A is in the middle of this band |
| BBB+ / BBB / BBB– | Moderate safety — lowest investment grade | Adequate capacity but meaningful vulnerability; lowest investment-grade band |
| Below BBB– | Speculative / default | Below investment grade; significant credit risk |
ICRA A / Stable places Muthoot MCred squarely in the mid-investment-grade tier three notches below the top, and two notches above the minimum investment-grade threshold. A Stable outlook indicates ICRA does not currently expect a rating change in the near to medium term.
For a gold-loan-focused NBFC serving rural and semi-urban markets, an A rating from ICRA reflects:
● Adequate credit quality supported by the secured nature of the gold loan portfolio
● Recognition of operational experience (established 1921) and branch network scale
● Some vulnerability to adverse conditions particularly gold price volatility, regulatory changes in the gold loan or microfinance segments, and rural income cycles
The ~11% YTM offered on A-rated Muthoot MCred bonds, versus ~8%–9.5% on AA-rated NBFC bonds, represents the market's pricing of this one-to-two-notch rating difference approximately 150–300 basis points extra yield for stepping from AA to A in credit quality.
Are Muthoot MCred Bonds Secured?
Yes. Both Muthoot MCred NCDs (INE101Q07BX1 and INE101Q07BZ6) are secured debentures, with Catalyst Trusteeship Limited (formerly GDA Trusteeship Limited) acting as the debenture trustee.
What secured means for gold loan NBFC bonds: For a company like Muthoot MCred whose primary business is gold loans, the security backing the NCDs is typically a charge over its loan receivables — which are themselves backed by the gold jewellery pledged by borrowers. This creates a two-layer structure: the NCD is secured by receivables, and those receivables are secured by physical gold.
Why this matters: Gold as underlying collateral is relatively liquid and has an established auction market for enforcement. Gold loan NBFCs have historically had better collateral recovery rates than unsecured lending NBFCs in stress scenarios. This is a positive structural factor for bondholders compared to secured bonds from NBFCs whose receivables are backed by vehicles, equipment, or microfinance loans.
Does secured mean risk-free? No. Recovery in any default scenario depends on:
● The quality and realisable value of the charged receivables
● The LTV (Loan-to-Value) ratios maintained on the underlying gold loans
● The prevailing gold price at the time of enforcement
● Enforcement timelines and costs through the debenture trustee
● Competing claims from other secured lenders
A sharp fall in gold prices could reduce collateral values and affect recoveries — though RBI regulations limit LTVs on gold loans to 75%, providing some buffer.
Muthoot MCred Business Profile and Financial Snapshot
● Gold loan dominance: The majority of Muthoot MCred's AUM (Rs 5,495 crore as of Sep 2025) is in gold loans secured lending against gold jewellery. Gold loans are typically short-tenure (3–12 months), self-liquidating, and have historically demonstrated strong repayment behaviour in India's rural and semi-urban markets because borrowers have a strong incentive to redeem pledged jewellery.
● Microfinance component: Muthoot MCred also operates a microfinance lending segment Joint Liability Group (JLG) loans to women borrowers in low-income communities. This segment carries higher credit variability than gold loans, and the Indian microfinance sector has experienced periods of elevated stress in recent years due to overleveraging of borrowers.
● Branch network: 970+ branches across 12 states predominantly in southern India and rural areas where the Muthoottu Group has strong legacy presence.
● AUM scale: At ~Rs 5,495 crore (Sep 2025), Muthoot MCred is a mid-sized NBFC — significantly smaller than the largest gold loan NBFCs (Muthoot Finance AUM exceeds Rs 1 lakh crore; Manappuram Finance exceeds Rs 25,000 crore) but with a well-established operational history.
What investors should independently verify: Current Net NPA ratio (especially for the microfinance component), Capital Adequacy Ratio, the ratio of gold loans to microfinance in current AUM, and the latest ICRA surveillance rating report, since these metrics change over time.
How Muthoot MCred Bonds Compare to Similar Rated NCDs
| Issuer | Rating | Indicative Coupon/YTM | Security | Sector |
|---|---|---|---|---|
| Muthoot MCred Limited (INE101Q07BX1) | ICRA A | 9.30% coupon / ~11.0% YTM | Secured | Gold loan + microfinance NBFC |
| Muthoot MCred Limited (INE101Q07BZ6) | ICRA A | 9.65% coupon / ~11.1% YTM | Secured | Gold loan + microfinance NBFC |
| Muthoot Microfin Limited (peer — different entity) | CRISIL A+ | 9.70%–9.95% coupon / ~10.5%–11% YTM | Secured | Microfinance NBFC |
| Manappuram Finance | AA | 8.75%–9.0% coupon / ~9.5%–10% YTM | Secured | Gold loan NBFC |
| Muthoot Finance | AAA | 7.4%–8.0% coupon / ~7.5%–8.5% YTM | Secured | Gold loan NBFC |
*Indicative as of Q2 2026. Not a recommendation. Peer data is illustrative for comparison purposes only.
Muthoot MCred bonds sit in the A-rated NBFC band — one to two notches below AA-rated gold loan peers like Manappuram Finance, and three notches below the AAA-rated Muthoot Finance. The ~11% YTM versus ~8%–10% for AA peers reflects this rating difference through the standard credit spread mechanism.
Key Risks of Investing in Muthoot MCred Bonds
● Credit risk: ICRA A is solidly investment grade, but one to two notches below the high-safety AA tier. Adverse conditions particularly stress in the gold loan or microfinance sector could affect the issuer's repayment capacity.
● Gold price risk: While gold loan collateral is generally liquid, a significant and sustained fall in gold prices reduces collateral values and could affect borrower repayment behaviour, as well as recovery values in a forced auction scenario.
● Microfinance segment stress: The microfinance portion of Muthoot MCred's portfolio carries higher credit variability than gold loans. The Indian microfinance sector has experienced periods of elevated stress in 2024–2025 due to borrower overleveraging and regional political events monitoring the health of this segment is important.
● Issuer name confusion risk (unique to Muthoot-branded entities): Muthoot MCred Limited is not the same as Muthoot Finance, Muthoot Microfin, or Muthoot Fincorp. Investors must verify the exact entity and ISIN before investing to ensure they are evaluating the intended issuer.
● Secondary market discount risk: Both ISINs are currently trading at approximately Rs 98.5 per Rs 100 face value a modest discount. Investors who need to exit before maturity must sell at the prevailing market price, which may be below their purchase price if market conditions or perceived credit risk have worsened since purchase.
● Liquidity risk: Smaller NBFC bond series, even when listed, may have limited secondary market volumes. Exiting at a fair price before maturity is not guaranteed.
● Regulatory risk: Gold loan NBFCs and microfinance NBFCs operate under active RBI oversight. Changes to LTV norms for gold loans, provisioning requirements, or microfinance lending guidelines can directly affect business models and profitability.
● Interest rate risk: Both bonds pay fixed coupons. If market rates rise after investment, the secondary market price may fall further from face value.
Taxation on Muthoot MCred NCDs
Coupon income: Monthly coupon payments (9.30% or 9.65%) are taxed as "Income from Other Sources" at the investor's applicable income tax slab rate.
TDS: For listed bonds held in Demat form, no TDS is deducted on interest for resident Indian investors under current rules self-reporting in the annual ITR is mandatory. However, some aggregator platforms note that TDS under Section 193 of the Income Tax Act may apply investors should confirm the specific TDS treatment for these bonds at the time of investment.
Capital gains on sale before maturity:
● Sold within 12 months: STCG — taxed at slab rate
● Sold after 12 months: LTCG — taxed at 12.5% without indexation per the Finance (No. 2) Act, 2024
At maturity: No capital gains tax for investors who hold to maturity. Since both bonds are trading below face value, holding to maturity produces a capital gain (face value minus purchase price) that is subject to LTCG at 12.5% — investors should factor this in.
How to Evaluate These Bonds Before Investing
| Check | What to Verify |
|---|---|
| Correct ISIN | Confirm you are evaluating INE101Q07BX1 or INE101Q07BZ6 — not another Muthoot MCred series |
| Correct Issuer | Confirm the issuer is Muthoot MCred Limited — not Muthoot Finance, Muthoot Microfin, or Muthoot Fincorp |
| Live Price and YTM | Check the current price and YTM — both change continuously |
| Coupon Rate and Frequency | INE101Q07BX1: 9.30% monthly | INE101Q07BZ6: 9.65% monthly |
| Maturity Date | INE101Q07BX1: 17 June 2028 | INE101Q07BZ6: 25 August 2028 |
| Credit Rating | Verify the current ICRA surveillance rating (A / Stable) and outlook |
| Security and Trustee | Confirm secured structure; Catalyst Trusteeship Limited as trustee |
| Issuer Financials | Current Net NPA (especially microfinance segment), Capital Adequacy Ratio, AUM composition |
| Gold price exposure | Understand the sensitivity of the collateral base to gold price movements |
| Secondary market discount | Both bonds trade below face value (~Rs 98.5); hold-to-maturity LTCG on discount |
| Portfolio concentration | Avoid excessive exposure to a single issuer or the gold loan / microfinance sector |
Where to View Muthoot MCred Bond Details
● On OBPP Plaforms like BondScanner: Both Muthoot MCred bond series are listed on BondScanner with current price, YTM, coupon details, and maturity information.
● ICRA Ratings: The full ICRA rating rationale for Muthoot MCred Limited — including the detailed credit assessment supporting the A / Stable rating — is available through ICRA's official ratings database.
● Exchange disclosures: Corporate bond disclosures and financial announcements from Muthoot MCred Limited are available through BSE filing databases where these NCDs are listed.
FAQs
What are Muthoot MCred bonds?
Muthoot MCred bonds are NCDs issued by Muthoot MCred Limited (formerly Muthoottu Mini Financiers Limited), a Kochi-based NBFC established in 1921 and part of the Muthoottu Group. This article covers two series: ISIN INE101Q07BX1 (9.30% coupon, Jun 2028) and INE101Q07BZ6 (9.65% coupon, Aug 2028), both rated ICRA A / Stable and secured.
Is Muthoot MCred the same as Muthoot Finance?
No. Muthoot MCred Limited (Muthoottu Group) is a separate legal entity from Muthoot Finance Limited (George Muthoot Group). Muthoot Finance is India's largest gold loan NBFC and is AAA-rated; Muthoot MCred is A-rated. They operate under different promoter groups despite sharing the Muthoot brand.
What are the ISINs for Muthoot MCred bonds?
This article covers INE101Q07BX1 (9.30% coupon, matures 17 June 2028) and INE101Q07BZ6 (9.65% coupon, matures 25 August 2028). Muthoot MCred has multiple other bond series with different ISINs.
What is the credit rating of Muthoot MCred bonds?
Both covered ISINs are rated ICRA A / Stable solidly investment grade, in the mid-tier of the rating scale, indicating adequate capacity to meet obligations with low credit risk under normal conditions.
What is the YTM on Muthoot MCred bonds?
The indicative YTM for both ISINs is approximately 11.0%–11.1% p.a. as of Q2 2026. YTM is higher than the stated coupons (9.30% and 9.65%) because both bonds are trading below face value in the secondary market.
Are Muthoot MCred bonds secured?
Yes. Both are secured NCDs with Catalyst Trusteeship Limited as the debenture trustee. The security is backed by the company's loan receivables, which are themselves secured by gold jewellery in the gold loan segment.
What are the key risks of Muthoot MCred bonds?
Key risks include A-rated credit risk (two notches below AA), gold price sensitivity affecting collateral values, microfinance segment stress, issuer name confusion with other Muthoot-branded entities, secondary market discount, limited liquidity, and standard interest rate risk. This is educational information, not a recommendation.
Published By
BondScanner, a SEBI-registered Online Bond Platform Provider (OBPP). Links to BondScanner's bond listing page, Android app, and iOS app referenced in this article are for informational purposes only.
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Disclaimer
This blog is intended solely for educational and informational purposes. The instruments, issuer categories, yield ranges and examples mentioned herein are illustrative and should not be construed as investment advice or recommendations.
BondScanner is a SEBI-registered OBPP and does not provide personalised investment advice. Nothing in this article is a solicitation to buy or sell any security. Investments in debt securities are subject to risks, including delay and/or default in payment. Investors must read all offer-related documents carefully before investing.
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