Nonconvertible debentures are unsafe bonds that cannot be transformed to
company equity or stock.

They usually have higher interest rates than convertible debentures.

A fixed deposit is an arrangement with a bank where a depositor places
money in the bank and is paid a regular fixed profit.

They are used as tools to raise long-term funds by companies through a
public issue. To recompense for this drawback of non-convertibility,
moneylenders are usually given a higher rate of return compared to
convertible debentures.

It offer various other profits to the owner such as high liquidity through stock
market listing, tax exemptions at source and safety since they can be issued
by companies which have a good credit rating as specified in the norms laid
down by RBI for the issue of NCDs.


As you have asked information about the loan against the debentures of SBI, see below for information

You can avail of loans up to Rs.20.00 lacs against the debentures to enable you to meet contingencies, personal needs or even for subscribing to rights or new issue of shares.
Eligibility

This facility is available to the individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in either or Survivor/ Former or Survivor mode.
It is offered as an Overdraft or Demand Loan.
Purpose:

For meeting possibilities and needs of personal nature, loan will be allowable for contributing to rights or new issue of debentures against the security of debentures.
Loan will not be sanctioned for
(i) speculative purposes
(ii) inter-corporate investments or
(iii) acquiring controlling interest in company / companies.