💸 Private Credit Gaining Traction as Equity Slows

Summary: With IPO pipelines cooling and market volatility rising, India’s private‑credit market—NBFC loans, direct lending, structured notes—is booming. Yields of 12–15% outpace public‑market debt, and deal volume grew 7% in 2024. Discover why private debt is the go‑to income play and how InvestoEdge curates top strategies for you.

1. Yield Advantage & Illiquidity Premium

Private‑debt funds offer yields of 12–15%, compared to 7–9% on corporate bonds—earning an illiquidity premium of 3–5%.¹

2. Direct Lending Dominates

In 2024, direct lending captured over 75% of private‑credit capital, totaling USD 150 billion globally.²

3. RBI & NBFC Policy Tailwinds

RBI’s Feb 2025 move to lower risk weights on bank exposures to NBFCs boosts credit flow to these key private‑credit originators.³

4. Structuring & Covenants

Senior‑secured loans, mezzanine tranches, and bespoke covenant packages protect investors—ensuring priority claims and downside buffers.⁴

5. How to Access via InvestoEdge

InvestoEdge’s “Private Credit Hub” aggregates SEBI‑registered AIFs, NBFC note issuances, and structured‑note strategies—complete with yield, tenor, and covenant comparisons on one dashboard.

References

1. ET Fixed Income – Private‑credit yields up 12–15%
2. PwC India – Tapping private‑credit opportunities (2025)
3. RBI – Revised risk weights for NBFC exposures (Feb 2025)
4. Chambers & Partners – India private‑credit trends 2025
5. Mint – Should HNIs look at private credit?
6. With Intelligence – Private Credit Outlook 2025
7. EY – Onwards & upwards: Private credit in India
8. Macquarie – Private‑credit market growth in 2025
9. Mint – NBFCs on RBI co‑lending rules
10. Reuters – India allows junk‑debt securitisation (Apr 2025)