New Delhi, April 26 -- Private credit has had a good start. There is growing demand from corporate borrowers for faster credit decisions, customization of the loan structure and possible flexibility in repayment terms. Except a few exemplar banks, most still take 30-75 days for corporate loan underwriting, while they find it challenging to customize loans or offer flexible payments for regulatory reasons. In comes private credit.

In India, private credit has made significant strides in the last few years. Recently, its assets were estimated to be upwards of Rs.2.5 trillion. That's barely 1% of India's banking book. However, one may expect private credit to increase in importance, provided today's limited regulatory elbow room for banks c...