Here is the list of different types of Bonds available.
State Bonds: The various States issues state Bonds in India. The States raise money via this Bond route regularly. These Bonds are called „State Development Loans‟ or SDLs. Like GSecs, they are also perceived to be of the highest safety level and hence do not carry any credit rating.
Municipal Bonds: Municipal Bonds are issued by local or state-level government agencies to fund development activities like city development, urban transportation, healthcare infrastructure, etc. These Bonds are popularly called as „Muni Bonds.‟
Public Sector Bonds: Public Sector Bonds are issued by organizations where the government holds more than 50% ownership. Example: NHAI, REC, ONGC, etc.

Corporate Bonds: The large corporations and financial institutions issue these bonds to capitalize on their business operations. They are rated by various credit rating agencies based on the risk profile of the bonds.
Taxable Bonds: All Corporate Bonds fall into this category. The interest income earned from investments in these Bonds is taxed as per the investor‟s income tax slab.
Tax-Free Bonds: The PSU units issue Tax-Free Bonds. The interest income earned from investment in these Bonds is 100% tax exempted. Merely knowing the names of different bonds may not be sufficient to make investment decisions. Investors should see how these bonds are different from each other and which one can help you to meet your financial goals.