Not everyone wishes to chase jackpot returns from the stock market or wait decades to build a corpus. For many, their priority is simple: to have a steady and stable monthly income they can count on, something that feels as reliable as a paycheck.
This is exactly what corporate bonds with monthly payouts offer. They not only beat the returns of traditional FDs but also take away the constant ups and downs of the stock market.
This blog compares top monthly income corporate bonds across rating categories, analyzes their risk-return profiles, and guides you toward making informed investment decisions in India’s corporate bond market.
What Are Corporate Bonds and How do Monthly Payouts Work?
Corporate bonds are debt securities issued by private and public companies to raise capital for business expansion, working capital requirements, refinancing existing debt, etc. Corporate bonds with AAA to BBB- ratings are considered investment-grade securities and generally offer 8% to 15% yield p.a. These bonds usually come with varying payout durations as well, but in this blog, we’ll focus on the ones that pay out monthly returns.
When you invest in a corporate bond with monthly payouts, you will be entitled to receive a predetermined monthly interest payout as per the type of bond. For example, investing ₹1 lakh in a 12%p.a. monthly payout bond would yield ₹1,000 per month.
Apart from receiving recurring passive income, corporate bonds offer you other benefits as well. Here are the reasons why many investors find monthly income bond options lucrative.
Why Investors Choose Monthly Income Bonds in India
Monthly income bonds have gained popularity amongst Indian investors in recent years. Many people choose corporate bonds with monthly payouts due to:
- Fixed, Predictable Monthly Income: Corporate bonds with monthly payout assure you with recurring income that makes financial planning easy. You can use this passive income to meet fixed expenses such as rent, household expenses, school or college fees, etc.
- Beat Traditional FD Returns: AAA to BBB- rated corporate bonds offer 8%-15% yield on average. This significantly outperforms traditional fixed deposit returns while providing predictable cash flows for financial planning.
- Portfolio Diversification: Exposing your portfolio to different types and categories of bonds reduces overall volatility and dependency of the portfolio on the market sentiments.
- Avoid Equity Market Rollercoaster: Unlike volatile stock markets, monthly income bonds offer you peace of mind by providing stable and predetermined income month on month.
- Alternative Growth Vehicle: These bonds serve as intelligent money growth alternatives by offering inflation-beating returns without the unpredictability of equity markets or real estate cycles.
- Salary-like Income Stream: Monthly returns create a regular stream of passive income. This presents an appealing opportunity for retirees transitioning from active careers to fixed-income dependency.
Best Corporate Bonds in India Offering Monthly Payouts in 2025
Corporate bonds come off as the ideal alternative option because of higher returns than traditional FDs and more stability than equity markets. However, the term “best” depends on your individual goals, financial planning and risk appetite. Keeping this in mind, the list below showcases how various high-yield corporate bond opportunities are offered on Jiraaf.
AA- Rated Bonds
AA- rated corporate bonds carry the highest credit ratings after AAA- rated bonds. These bonds represent exceptional creditworthiness and minimal default risk. These bonds offer government bond-like safety with enhanced yields, typically ranging from 8-10% annually. This makes them ideal for ultra-conservative investors seeking superior returns without compromising on security.
An AA- rated corporate bond listed on Jiraaf
| Attribute | MAS Financial Services Limited |
| Issuer Name | MAS Financial Services Limited |
| Yield | 9.30% |
| Rating | CARE AA- |
| Tenure | 9 Months |
| Maturity | May 2026 |
| Minimum Investment | ₹99,779 |
| Interest Payout | Monthly |
*Live in August 2025
A- Rated Bonds
A- rated corporate bonds strike the ideal balance between safety and yield. These bonds offer 9-12% returns with manageable credit risk. They are issued by established companies with solid business models and strong financial fundamentals.
An A- rated corporate bond listed on Jiraaf
| Attribute | Muthoottu Mini Financiers Ltd |
| Issuer Name | Muthoottu Mini Financiers Limited |
| Yield | 11.15% |
| Rating | ICRA A |
| Tenure | 22 Months |
| Minimum Investment | ₹98,389 |
| Interest Payout | Monthly |
*Live in August 2025
BBB- Rated Bonds
BBB- rated corporate bonds offer the highest yield in the investment grade category with a slightly higher credit risk compared to other AAA or AA- rated bonds. These bonds maintain reasonable safety while providing more returns that often exceed traditional investment options by 300-500 basis points.
BBB+ rated corporate bonds listed on Jiraaf
| Attribute | Keertana Finserv Pvt Ltd | Samunnati Financial Services |
| Yield | Up to 14.00% | Up to 12.25% |
| Rating | India Ratings BBB+ | CRISIL BBB |
| Tenure | 17 Months | 126 Days |
| Maturity | Jan 2027 | Jan 2026 |
| Minimum Investment | ₹84,757 | ₹24,996 |
| Interest Payout | Monthly | Monthly |
*Live in August 2025
High-Yield Bonds
High-yield corporate bonds offer opportunities for maximum income generation while maintaining manageable risk levels. These bonds offer returns of 12 or higher. While carrying elevated credit risk, these bonds provide superior yields through enhanced due diligence processes including collateral analysis and comprehensive business model evaluation.
A high-yield bond listed on Jiraaf
| Attribute | Dvara Kshetriya Gramin Financial Services |
| Issuer Name | Dvara Kshetriya Gramin Financial Services Pvt Ltd |
| Yield | 12.50% |
| Rating | CRISIL BBB+ |
| Tenure | 16 Months |
| Maturity | December 2025 |
| Minimum Investment | ₹7,473 |
| Interest Payout | Monthly |
*Live in August 2025
All of the bonds mentioned above cater to different kinds of portfolios, depending on your financial goals and risk appetite. There are certain risk angles you must consider before investing in the debt market.
Risks and Considerations Before Investing
Credit Risk
Credit risk is one of the primary concerns of corporate bond investors. It refers to the possibility of issuers defaulting on interest payments or principal repayment. Even the best corporate bonds carry varying degrees of credit risk based on issuer financial health, business model sustainability, and market conditions. Hence, you should carefully analyze credit ratings, financial statements, and business fundamentals before investing.
Interest Rate Risk
Interest rate risk affects bond valuations when market interest rates change after your investment. Rising interest rates can reduce bond values if you need to sell before maturity, though this primarily impacts secondary market transactions rather than hold-to-maturity strategies focused on corporate bonds monthly income.
Liquidity Risk
Liquidity risk refers to any restraint on your ability to exit bond positions in the secondary market quickly without price concessions. While some best corporate bonds trade actively on exchanges, others may have limited secondary market activity, requiring careful consideration of investment timelines and liquidity needs.
Concentration Risk
Concentration risk emerges when portfolios become overly dependent on specific issuers, sectors, or rating categories. Diversifying across multiple corporate bonds having different tenures and credit ratings helps you in mitigating issuer risks while maintaining steady income streams.
How to Invest in Corporate Bonds in India
The way people invest in fixed-income securities has been completely revolutionized in the last few years.
Here is how you can easily invest in corporate bonds of your choice with Jiraaf in four steps:
Step 1: Create Your Jiraaf Account
- Visit https://www.jiraaf.com/opportunities and click “Start Investing Now.”
- Complete the paperless KYC by entering your PAN, Aadhaar-linked mobile number, and email address.
Step 2: Link Your Bank and Demat Accounts
- After logging in, navigate to the “Profile” section and select “Link Bank Account.”
- Provide your savings account details (IFSC and account number) for seamless fund transfers.
- In “Link Demat Account,” select your Depository (NSDL or CDSL) and enter your DP ID and Client ID.
Step 3: Explore Curated Bond Opportunities
- On the “Opportunities” page, use filters at the top to narrow by rating (AAA, A, BBB, High Yield), tenure (<1 year), and minimum investment (₹1,000)
- Each bond card displays things like the issuer’s name, credit rating, yield, tenure, minimum investment, and payout frequency.
Step 4: Place Your Investment
- Enter the amount you wish to invest.
- Click “Invest Now” and review the summary, including expected monthly income and maturity proceeds.
Conclusion: Who Should Consider These Bonds?
High-yield corporate bonds are ideal for investors seeking to outpace inflation while earning a stable and fixed income. If you are someone who wants to beat FDs’ returns while keeping your money safe from the equity market’s rollercoaster, then corporate bonds provide a lucrative alternate investment option.
Always remember, the key to successful bond investing is aligning bond selections with your financial goals, risk appetite, and income needs. Platforms like Jiraaf make institutional-quality corporate bonds accessible for building diversified and income-generating portfolios.
