Question

what is features of debenture​

Answer 1

Answer:

Salient Features of Debentures

It usually shows the amount & date of repayment of the loan. It has a rate of interest & date of interest payment. Debentures can be secured against the assets of the company or may be unsecured. Debentures are generally freely transferable by the debenture holder.

Answer 2

Answer:

One of the biggest advantages of debentures is that the company can get its required funds without diluting equity. Since debentures are a form of debt, the equity of the company remains unchanged.

Interest to be paid on debentures is a charge against profit for the company. But this also means it is a tax-deductible expense and is useful while tax planning

Debentures encourage long-term planning and funding. And compared to other forms of lending debentures tend to be cheaper.

Debenture holders bear very little risk since the loan is secured and the interest is payable even in the case of a loss to the company

At times of inflation, debentures are the preferred instrument to raise funds since they have a fixed rate of interest