Why Not Mint Money Rise of Indian Private Credit
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Jun 25, 2025 
Divyanshu Pandey and Tirthankar Datta from JSA Partners dive into the booming world of private credit in India. They discuss how this alternative financing is stepping in where traditional banks have faltered, particularly after recent banking crises. The conversation covers the advantages of private credit, evolving co-lending dynamics between banks and credit funds, and the importance of risk management in this sector. With insights on regulatory frameworks and market opportunities, they paint a picture of the future landscape of financing in India.
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Private Credit Defined
- Private credit in India is a high-yield, non-bank lending product offering tailored finance solutions.
- It serves entities underserved by banks, NBFCs, or public debt markets with non-listed debt instruments.
Rise Fueled by Market Gaps
- The rise of private credit followed a perfect storm: Indian banks struggled with NPAs and NBFC liquidity issues.
- Private credit funds, including AIFs and FPIs, stepped in filling lending gaps with more complex, structured debt.
Private Credit vs. Traditional Lending
- Private credit fills gaps left by banks, especially for risky or acquisition financing restricted to banks.
- It enables early-stage, stressed, or real estate companies access to much-needed capital.