Mumbai, Aug. 14 -- India's non-bank lenders could see heightened foreign interest as global financial capital covets the country's booming retail loan market, industry experts said.

Bank of America Corp. on Wednesday agreed to acquire up to 49.9% of Jio Credit for $1.9 billion, valuing the retail lending unit of Jio Financial Services at $3.8 billion. While only a few global banks operating in India offer retail loans, analysts said such investments are a good way to ride the retail boom without making direct lending commitments.

"There is interest from players in West Asia, South Korea and Japan to invest here. For overseas investors like Bank of America, this is a good entry point into the retail lending space in India through Jio Cre...