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Fixed Income Instruments

State Development Loans (SDLs)

The interest and principal are paid on the maturity date. As we delve into the world of finance, it is important to understand the concept of State Development Loans. These loans, issued by the state governments of India, are utilized to support various activities and meet budgetary requirements. Similar to dated securities, SDLs pay interest on a half-yearly basis and the full amount is repaid on the maturity date. This serves as a crucial source of funding for state governments.
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