Private credit is rapidly gaining prominence as an alternative to bank loans in India. The market has doubled to nearly $25 billion in assets under management (AUM) over the past five years and is expected to continue growing, supported by strong demand for financing from businesses, according to a report by Moody’s Rating.
Although India's private credit market has expanded rapidly over the past five years, crossing $11 billion in annual transaction value in 2025 and reaching around $25 billion in assets under management (AUM) by the end of the year, it remains relatively small compared with global markets.
