Hello, my good name is Aditya Sahnii and I belong to India. I love reading books very much in my free time and here is my point of view on debentures and debenture holder definition. A debenture is a loan by a company to its own stocks, giving an investor the promise of collateral for the loan. The holder of a debenture is also called a debenture holder. A debenture is a loan usually made by one business entity to another. Given by both to another that they are both willing and able to lend but unwilling to become a bond creditor. The formation of this kind of debt usually controlled by statute under which the debentures cannot be offered to the public generally, but are private loans made directly by the debenture holder to the debtors. Usually, such security carries with it voting rights for stockholders, but sometimes not.