New Delhi, Aug. 27 -- Private credit refers to loans given by non-bank lenders. This investment class has seen double-digit growth over the last five years, with industry estimates placing assets under management at $25-30 billion, and most wealth managers now offer it in some form.

According to EY India, calendar 2025 saw 166 private credit transactions worth $12.4 billion, up 35% over 2024. Real estate funding accounts for about 42% of India's private credit deals, while healthcare and industrial each account for 15%.

Why the rapid growth? One reason is the less appealing expected returns on equity against the potential of up to 22% on private credit; the other is structural. After the 2008 financial crisis, the central bank tightened...