Private Creditâs growth curve in India
Private credit in India has moved from niche to mainstream, and 2026 is the year it becomes a core part of the countryâs funding stackâespecially for stressed and structured deals where banks are pulling back.
India saw around USD 9 billion of private credit deals in H1 2025, a 53% yearâonâyear surge, driven by large refinancing and complex structured transactions.
Assets under management in Indiaâfocused private debt funds jumped from USD 0.7 billion in 2010 to about USD 17.8 billion in 2023, making India one of APACâs fastestâgrowing private credit markets.
Reports project 25â30% annual growth in private credit value and volume, with India potentially accounting for up to 30% of APAC private credit fundraising by endâ2025.
This isnât just more capital; itâs a structural shift in how Indian corporates think about leverage, speed, and flexibility.
Five latest trends shaping Private credit
1. From rescue capital to primary capital
Private credit is no longer only âlastâresortâ distress money. Around 15â20% of recent private credit flows are going into growth, capacity expansion, and acquisition financing, not just workouts. Yet, stressed and special situations remain a core use caseâespecially where banks canât or wonât lend under current prudential norms.
2. Bigger, more complex deals
Deal sizes have scaled up sharply, with multiple Indian transactions now exceeding USD 125â300+ million per borrower, including landmark structured financings for infrastructure, manufacturing, and large conglomerates. A single deal in 2025 (Shapoorji Pallonji group) accounted for over USD 3 billion of private credit, underscoring the marketâs ability to support megaâtransactions.
3. Stressed assets + Performing credit converge
Traditionally, private credit in India focused on stressed and special situations, but the opportunity set now spans both stressed credit (high yield, complex risk) and performing credit (12â18% IRR). Sectors like manufacturing, real estate, and hotels account for about 65% of resolved stressed companies, and they are proving fertile ground for bespoke private credit structures.
4. Regulatory push: RBIâs ECL norms as a catalyst
The RBIâs proposed Expected Credit Loss (ECL) framework will force banks to provision earlier and more aggressivelyâespecially for Stage 2 and Stage 3 (creditâimpaired) assets, where lifetime ECL and higher provisioning floors (up to 100% after 4 years) will apply. This is expected to:
Nudge banks to sell or syndicate stressed assets faster,
Create a larger pipeline of NPAs, SMAâ2 assets and special situations that are ideal for private credit solutions.
5. Sector focus: Real estate, infra and acquisition finance
Real estateâlinked private credit already accounts for more than oneâthird of transaction value in India, with a rising share of deals tied to M&A and acquisition financing (roughly 35% of deals). Private lenders are filling gaps that banks canât fillâlike funding equity for acquisitions, providing lastâmile capital to complete projects, and supporting complex refinancing of leveraged corporates.
Where Credit Curators fits into this new private credit landscape
Against this backdrop, Credit Curators positions itself as a specialist curator of private credit in Indiaâs stress and specialâsituation markets, with a strong focus on NPAs, SMA accounts, and structured realâasset funding.
NPA & SMA funding (SMAâ0/1/2): Liquidity for businesses flagged but not yet written offâpreventing slippages into fullâblown NPAs.
Stressedâasset & OTS funding: Capital to close oneâtime settlements with banks and ARCs, enabling promoters to regain or retain control.
Acquisition & lastâmile real estate funding: Structured private credit for acquiring stressed projects, finishing stalled developments, or refinancing highâcost exposure in realty and infra.
Projectâspecific and sectorâagnostic solutions: Tailored term sheets for manufacturing, logistics, hospitality, renewables and more, aligned to cashâflow realities and asset values.
How Credit Curators is different from typical lenders
We are curators, not just capital providers â we match businesses with the right structured credit, covenants and tenors for actual turnaround, not just shortâterm plugging.
Faster execution â mandates typically move from assessment to funding in 7â14 working days, versus months under traditional bank processes.
Promoterâsensitive structures â we emphasise structures that preserve or restore promoter control, rather than pure asset stripâouts.
Regulatoryâaware design â every structure is built with RBI, SEBI and IBBI norms in mind, including alignment with evolving ECL expectations and stressedâasset frameworks.
What this means for borrowers in 2026
If you are a midâmarket corporate, developer, or promoter facing stress, the 2026 environment is very different from the last NPA cycle:
Banks are better capitalised but more conservative, especially with ECLâdriven provisioning.
Private credit funds (domestic and global) have both the capital and the appetite to underwrite complex risk at 12â22% yields.
Wellâadvised borrowers can now use curated private credit to:
*Avoid or exit IBC, *Close OTS deals on time, *Refinance expensive or rigid bank exposure, *Complete projects and unlock cash flows, rather than liquidating at the bottom of the cycle.
In this context, Credit Curatorsâ role is to translate macro trends into transactionâlevel outcomes: funding that is fast, structured, and realistic for stressed but fundamentally viable businesses.
