Types of Debentures

There are Two types of debentures

1. Convertible debentures : Convertible debentures are debentures which can be converted into equity shares of the liable company. Since these debentures are convertible they carry low interest rate.                   
2. Non Convertible debentures : Non Convertible debentures which cannot be converted in equity shares of the liable company. Since these debentures are not convertible they carry high interest rate.