Private credit is when non-bank investors extend debt to companies, often smaller enterprises that aren’t serviced by traditional banks for various reasons.

Private credit assets in India are expected to reach a staggering USD 70-80 billion by 2028.

Compared to other traditional instruments within the fixed income space, private credit emerges as a strategic option for affluent Indians for the 2 reasons-

1. Stability: Investors get access to stable returns as the companies they’re invested in make periodic interest repayments as per predetermined terms.

2. Diversification: Private credit also allows investors to diversify within the fixed income space and manage risk-reward effectively.