INDIAN RAILWAY FINANCE CORPORATION LIMITED

Category II (Non Institutional Investors) (“NIIs”):Companies within the meaning of section 3 of the Companies Act and bodiescorporate registered under the applicable laws in India and authorised to invest inthe Bonds.Category III (High Networth Individuals) (“HNIs”):The following Investors applying for an amount aggregating to above ` 10 lakhsacross all Series of Bonds in each Tranche Issue:Resident Indian individuals;Eligible NRIs on a repatriation or non – repatriation basis; andHindu Undivided Families through the Karta.Category-IV (Retail Individual Investors) (“RIIs”):The following Investors applying for an amount aggregating to up to andincluding ` 10 lakhs across all Series of Bonds in each Tranche Issue:Resident Indian individuals;Eligible NRIs on a repatriation or non – repatriation basis; andHindu Undivided Families through the Karta.Option to retain over Upto the Shelf LimitsubscriptionPut / Call Option Not applicableObjects of the Issue and Please refer to Section “Objects of the Issue” on page 28details of utilisation ofproceedsInterest Payment Date October 15 every yearInterest on application See Section titled “Terms of the Issue-Interest on Application Amounts” on pagemoney51 of the Prospectus Tranche-1.Interest on refund money See Section titled “Terms of the Issue-Interest on Application Amounts” on page51 of the Prospectus Tranche-1.Default interest rate As specified in the Debenture Trust Deed to be executed between the Companyand the Trustee.Day count basis Actual / Actual/ i.e. interest will be computed on a 365 days-a-year basis on theprincipal outstanding on the Bonds. Where the interest period (start date to enddate) includes February 29, interest will be computed on 366 days-a-year basis, onthe principal outstanding on the Bonds.Working DayA Working Day shall mean all days excluding Sundays or a public holiday in IndiaConventionor at any other payment center notified in terms of the Negotiable Instruments Act,1881, except with reference to Issue Period, Interest Payment Date and RecordDate, where working days shall mean all days, excluding Saturdays, Sundays andpublic holiday in India or at any other payment center notified in terms of theEffect of holidays onpaymentsStep up/ step downcoupon rateDiscount at which Bondis issued and the effectiveNegotiable Instruments Act, 1881.If the date of payment of interest or principal or redemption or any date specifieddoes not fall on a Working Day, the succeeding Working Day will be consideredas the due date. Interest and principal or other amounts, if any, will be paid on thesucceeding Working Day.The additional interest of 0.50% p.a shall only be available to the originalAllottees under Category IV for the Tranche – 1 Series I Bonds and the Tranche –1 Series II Bonds. In the event the Bonds held by the original Allottees underCategory IV are sold/ transferred (except in case of transfer of Bonds to legal heirin the event of death of the original Allottee), the coupon rate shall stand revised tothe coupon rate applicable for Allottees falling under Category I, Category II andCategory III.Not Applicable15