Interest Rates for SDL Investments

What is the interest rate for SDL investments?

Interest rates on State Development Loans (SDLs) aren't static. They're ascertained through auctions run by the Reserve Bank of India (RBI). While the central bank conducts these auctions biweekly, the precise details and results are accessible on its official website. The determining factors for the SDL interest rate encompass the issuing state government, bond maturity, and prevailing market dynamics. Generally, SDL rates tend to surpass those on government bonds, signifying potentially greater returns, albeit with a heightened credit risk.

For a more vivid understanding, here are some SDL interest rates:
  • 7.42% ANDHRA SDL 2031
    Maturity Date: September 14, 2031
    Interest Rate: 7.42%
  • 7.16% KARNATAKA SDL 2030
    Maturity Date: January 8, 2030
    Interest Rate: 7.16%
  • 8.26% GUJARAT SDL 2031
    Maturity Date: January 13, 2031
    Interest Rate: 8.26%
Please note that these figures are representative and might change over time. For real-time interest rates on SDLs, it's best to refer to the RBI's website or consult the National Stock Exchange (NSE).


    • Related Articles

    • What is the interest rate for MTF, and does it vary across different holding period?

      The interest rate for the Margin Trading Facility (MTF) is 16% per annum, applicable uniformly across various holding periods including BTST (Buy Today Sell Tomorrow), swing trading, and long-term investments. This consistent interest rate simplifies ...

    • What is the interest rate on investing in G-Secs?

      The interest rate for Government Securities (G-Secs) is influenced by various factors, including prevailing market conditions, fund demand and supply, inflation expectations, and the government's credit quality. This rate is decided during the ...

    • What is the rate of interest investing in Treasury bills?

      The interest rate for Treasury Bills (T-Bills) isn't pre-set; instead, they are issued at a discount to their face value and mature at par. The interest earned is the difference between the face value and the issue price. The maturity period of ...

    • Are there any hidden charges associated with MTF other than interest?

      Apart from the 16% interest rate per annum, there are no hidden charges for using MTF. This transparency ensures users can plan their investments without worrying about unexpected costs.

    • How is interest on SGB calculated and paid?

      SGBs come with a fixed interest rate of 2.50% p.a. based on the initial investment. This interest is disbursed semi-annually directly into the investor's bank account. To illustrate, if Mr. M invests ₹10,00,000 in an SGB issue, he will earn an annual ...