Paisalo Digital Ltd has come up with its latest secured Non-Convertible Debenture (NCD) issue in August 2026 to raise up to ₹300 Crores under its shelf prospectus. The company is offering attractive interest rates of up to 10.47% per annum, which is likely to catch the attention of fixed income investors looking for better returns than traditional bank fixed deposits.
However, should investors subscribe to the Paisalo Digital NCD August 2026 issue? In this review, let us look at the issue details, interest rates, company financials, credit ratings, key positives, risks and whether this NCD could be suitable for investors.
About Paisalo Digital Ltd
Paisalo Digital Ltd was incorporated in 1992 and is an RBI registered Non-Banking Financial Company (NBFC-ML). The company primarily focuses on lending to customers in rural and semi-urban India.
Its business includes:
- Micro Enterprise Loans
- MSME / Business Loans
- Business Correspondent (BC) services
- Financial inclusion initiatives through partner banks
As of 31 March 2026, the company operates across 22 states and union territories through more than 5,200 customer touchpoints and serves nearly 16 million customers. Paisalo has built a strong presence in lending to underserved segments, particularly women borrowers and small businesses.
Paisalo Digital NCD Aug 2026 Issue Details
| Particulars | Details |
|---|---|
| Issue Opening Date | 7 August 2026 |
| Issue Closing Date | 20 August 2026 |
| Security Type | Secured Redeemable Non-Convertible Debentures |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 |
| Base Issue Size | ₹150 Crores |
| Green Shoe Option | ₹150 Crores |
| Total Issue Size | ₹300 Crores |
| Shelf Limit | ₹900 Crores |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Market Lot | 1 NCD |
| Listing | BSE |
| Basis of Allotment | First Come First Serve (FCFS) |
| Lead Manager | Tipsons Consultancy Services Pvt. Ltd. |
| Registrar | Alankit Assignments Ltd. |
| Debenture Trustee | Axis Trustee Services Ltd. |
Paisalo Digital NCD Aug 2026 Interest Rates
Investors can choose from six investment options based on their preferred tenure and interest payment frequency.
| Series | Tenure | Interest Payment | Coupon Rate | Effective Yield |
|---|---|---|---|---|
| I | 18 Months | Monthly | 9.00% | 9.38% |
| II | 24 Months | Monthly | 9.15% | 9.53% |
| III | 36 Months | Monthly | 9.50% | 9.92% |
| IV | 36 Months | Annual | 9.92% | 9.91% |
| V | 60 Months | Monthly | 10.00% | 10.46% |
| VI | 60 Months | Annual | 10.47% | 10.46% |
The highest coupon of 10.47% is available under the 60-month annual interest payment option.
Paisalo Digital NCD Credit Rating
The NCD issue has received the following credit rating.
| Rating Agency | Rating | Outlook | Interpretation |
|---|---|---|---|
| Brickwork Ratings | AA | Stable | High degree of safety regarding timely servicing of financial obligations |
A AA (Stable) rating generally indicates relatively low credit risk, though it does not eliminate investment risk completely.
Credit Rating Trend During the Last Few Years
Paisalo Digital has generally maintained investment-grade credit ratings over the last several years.
| Financial Year | Credit Rating | Outlook |
|---|---|---|
| FY2022 | AA | Stable |
| FY2023 | AA | Stable |
| FY2024 | AA | Stable |
| FY2025 | AA | Stable |
| FY2026 | AA | Stable |
The stable rating trend reflects consistent credit quality over the years, though investors should always monitor any future rating changes.
Objects of the Issue
The company proposes to utilize the proceeds from this issue mainly for:
- Lending activities and financing business
- Repayment or servicing of existing borrowings
- General corporate purposes
Since Paisalo is an NBFC, raising funds through NCDs forms part of its regular business funding strategy.
Company Financials
Paisalo Digital has shown steady growth over the last three financial years.
| Particulars (₹ Crores) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Assets | 6,191.66 | 5,086.12 | 3,903.44 |
| Total Income | 917.41 | 734.83 | 605.04 |
| Profit After Tax | 234.69 | 197.69 | 177.02 |
| Net Worth | 1,792.98 | 1,534.98 | 1,329.42 |
| Total Borrowings | 3,117.50 | 2,377.84 | 1,828.13 |
Observations:
- Revenue increased by around 25% during FY2026.
- Profit after tax increased by about 19%.
- Assets and net worth have consistently improved.
- Borrowings have also increased, which is expected for a growing lending business.
Overall, the financial performance indicates business expansion along with healthy profitability.
Why One May Consider Investing
- Secured NCDs provide an additional layer of protection compared to unsecured instruments.
- Attractive coupon rates of up to 10.47%.
- AA Stable credit rating.
- Consistent growth in revenue and profitability.
- Listed on BSE, offering liquidity subject to market conditions.
- Suitable for investors looking for regular monthly or annual income.
Why Investors Should Be Cautious
- Paisalo operates in the NBFC sector, which is sensitive to economic cycles and borrower defaults.
- Credit ratings can change in future depending on business performance.
- Liquidity on the stock exchange may vary after listing.
- Interest earned is taxable according to the investor’s applicable income tax slab.
- Rising borrowings should be monitored even though they support business growth.
How to Apply for Paisalo Digital NCD
Eligible investors can apply through:
- Net banking ASBA facility offered by banks.
- Supported stock brokers through online platforms.
- Registered online bond investment platforms.
- Offline application through authorized intermediaries.
Ensure your PAN, Demat account and bank account are linked before submitting the application.
Should You Invest in Paisalo Digital NCD Aug 2026?
Paisalo Digital has demonstrated improving financial performance over the past few years and the current NCD issue carries a AA Stable credit rating. The secured nature of the NCDs and coupon rates of up to 10.47% make this issue attractive for investors seeking relatively higher fixed-income returns.
Having said that, investors should remember that NCDs issued by NBFCs carry credit risk and are different from bank fixed deposits. Credit ratings are opinions and can change in future depending on the company’s financial performance.
From a risk-return perspective, this issue may be considered by investors who understand the risks associated with NBFC debt instruments and are looking to diversify their fixed-income portfolio. Conservative investors who prefer the highest level of capital safety may compare this issue with bank fixed deposits, RBI Floating Rate Savings Bonds and other highly rated debt instruments before making any investment decision.
Disclaimer: This article is meant purely for information and education and should not be considered as investment advice or a recommendation to subscribe or avoid the issue. Investors should read the prospectus carefully, understand the associated risks and consult a qualified financial adviser if required before investing.
Frequently Asked Questions (FAQs)
1. What is the opening and closing date of Paisalo Digital NCD Aug 2026?
The issue opens on 7 August 2026 and closes on 20 August 2026, subject to early closure.
2. What is the minimum investment?
The minimum investment is ₹10,000, equivalent to 10 NCDs.
3. What is the highest interest rate offered?
The maximum coupon offered is 10.47% per annum under the 60-month annual interest payment option.
4. Are these secured NCDs?
Yes. These are secured redeemable non-convertible debentures.
5. Where will these NCDs be listed?
They are proposed to be listed on the BSE.
6. Is the interest taxable?
Yes. Interest earned from NCDs is taxable as per the investor’s applicable income tax slab.
7. Can investors sell these NCDs before maturity?
Yes. After listing, investors may sell them on the BSE, subject to the availability of buyers and market liquidity.
