Corporate Bond Market in India Explained for Beginners A corporate bond is a type of fixed-income investment in which an investor provides funds to a company and receives interest payments at regular intervals. Once the bond reaches its maturity date, the company repays the original amount invested. In India, the corporate bond market has expanded considerably, surpassing ₹58 lakh crore and has become an important source of funding for companies alongside traditional bank loans. Companies from both the private and public sectors issue corporate bonds to raise funds for purposes such as expansion, infrastructure development, purchasing equipment, or repaying existing debt.