A debenture holder is entitled to payment in the form of

A debenture holder is entitled to payment in the form of interest. Interest is the money paid by a borrower to a lender as compensation for the use of the lender's money. When you hold a debenture, you are essentially loaning money to a company, and the interest paid on the debenture is the company's way of compensating you for the use of your money. In other words, the company is paying you interest as a way of "renting" your money. This interest payment is usually made at regular intervals, such as annually or semi-annually, until the debenture reaches maturity and the principal amount is repaid.