Credit Market

India's private credit market has doubled in size in the past five years to about USD 25 billion in Assets Under Management (AUM) as of 2025 end, and will further expand amid strong financing demand, Moody's Ratings said on Thursday. However, the new RBI norms which allow banks to finance acquisitions will increase competition in a segment historically dominated by alternative capital. "While the new rules may benefit borrowers by lowering costs for financing and increasing its availability, they could compress yields and reduce deal flows for private credit providers for acquisition financing," Moody's said. As per the new RBI rules effective July 1, RBI, for the first time, has allowed banks to fund strategic acquisitions of equity shares and compulsorily convertible debentures, subject to certain conditions. Moody's said India's private credit market has expanded rapidly over the past five years, evolving from a source of financing primarily for distressed companies to a provide

Bank lending rates rose in April despite an unchanged repo rate, supported by strong credit demand, while deposit rates continued to soften

Investors have also been snatching up junk bonds, although with a preference for the higher-rated end of the spectrum, implying that money managers still see risk ahead

Data from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi), and the World Bank suggests that India is a global outlier in the relative size of our credit markets

The IBC was designed to address collective action problems and prevent a race for enforcement that destroys going-concern value

Private credit is fast becoming a core funding source for India's mid-market firms, bridging gaps left by banks and bonds, says UTI Alternatives CEO Rohit Gulati

CRIF High Mark's Credit Insight Report 2026 shows borrowers aged 31-40 dominate portfolio value, while younger borrowers account for higher early-stage delinquencies in retail credit

Industry sources in the know added that more clarity was required in terms of reporting the use of credit line on UPI to credit bureaus in the country.

Absolute outstanding bank credit amount of large enterprises declined 32.67% from March-end to July-end this year

SME Chamber of India has called for easier MSME loans, waivers of fees and guarantees, and a permanent RBI Standing Advisory Committee to resolve financing challenges

AI credit management platform Oolka raises $7 million in seed funding led by Lightspeed India Partners and Z47, with plans to expand tech and product teams

The New York-based asset manager, which has about $2 billion assets in India, mainly in private credit, is targeting sectors including infra, financial services, industrials and supply chain finance

Private credit solves two gaps in the market: It helps where the banking system is unable to and offers bespoke solutions to corporate borrowers' specific needs

Cerberus, which has $65 billion under management globally, was among the anchor investors in Shapoorji Pallonji Group's $3.4 billion financing, the country's largest private credit deal to date

Trade policy outcomes in July, after the temporary tariff hiatus is over, and the future course of geopolitical events would likely shape the medium-term economic prospects

ULI, seen as the UPI of credit, gets a push from the DFS and RBI, which have asked ministries and states to onboard datasets for seamless and inclusive credit delivery

CIs get fresher data when underwriting or extending additional lines of credit, says Bhavesh Jain

Credit costs to touch 9.6% for FY25; sustained recovery in collection only from H2FY26

The Small Industries Development Bank of India on Wednesday said it has tied up with AFD, under which the French lender will provide a USD 100 million credit line. The resources will be deployed by Small Industries Development Bank of India (SIDBI) to scale up its green finance solutions for the Indian micro, small and medium enterprises (MSMEs), according to a statement. AFD will provide a credit line of USD 100 million to SIDBI to expand access to affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices, it said. Both the partners are committed to fostering sustainable economic development and enhancing climate resilience in emerging markets, the statement said, adding that the tie up leverages AFD's climate financing strengths and SIDBI's MSME understanding. "The USD 100 million credit line signed with SIDBI marks a crucial step in empowering MSMEs to invest in sustainable solutions. MSMEs have

Bank of India joins a slew of other Indian borrowers seeking to raise foreign currency debt this year. Reliance Industries Ltd. is looking to borrow as much as $3 billion