Non-Banking Financial Company (NBFC) bonds are debt instruments issued by NBFCs to raise funds for various financial activities, including lending and investment. These bonds typically offer higher interest rates compared to traditional bank deposits, appealing to investors seeking better yields. They carry credit ratings determined by agencies that assess the issuer’s financial stability. Investors should consider factors such as the issuer’s creditworthiness, maturity period, and market conditions before investing. NBFC bonds are subject to market risks and regulatory scrutiny, making it essential for potential investors to conduct thorough research before making investment decisions.