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Ajay Srinivasan News How Private Credit is Filling the Funding Gap in India

As per Ajay Srinivasan news, private credit is increasingly becoming a powerful tool to meet the funding requirements of borrowers who donu2019t get loans from banks due to the various limitations on banks.

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Ajay Srinivasan News How Private Credit is Filling the Funding Gap in India

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  1. AJAY SRINIVASAN NEWS: HOW PRIVATE CREDIT IS FILLING THE FUNDING GAP IN INDIA

  2. In recent times, India has seen an interesting shift in the way businesses raise money. Banks, which have been considered the most preferred source for funding, have witnessed a decline. Like we have witnessed in the US in a big way, there is the emergence of a new funding channel- Private Credit. A recent blog by Ajay Srinivasan, who is a veteran of the financial services industry, highlights some interesting points. As per Ajay Srinivasan news, private credit is increasingly becoming a powerful tool to meet the funding requirements of borrowers who don’t get loans from banks due to the various limitations on banks.

  3. ALL ABOUT PRIVATE CREDIT Private credit refers to non-bank lending, mostly provided by non-bank lending companies, asset managers, private debt funds or special situation investors. Private credit offers capital directly to companies, often for a fixed return, and operates outside the traditional regulatory framework that applies to banks. In the world, there has been a rise in the popularity of private credit for being an alternative source of capital. Of the approximately $ 2 trillion market size, the US accounts for over half, followed by Europe.

  4. WHY INDIA NEEDS PRIVATE CREDIT Banking Sector Limitations: The Indian banks are often cautious in lending, have a bit of a templated approach to lending and often take time to process non-standard requests. Furthermore, regulations make it difficult for them to finance land acquisitions or lend against shares. Rising Capital Needs: Businesses in India are growing and require funds to grow and expand, and often need money for meeting needs that are not met by traditional financiers, be it acquisition of land, acquisition of a company, increasing stake in a company, buying out a partner or lending in an Opco vs security from say a Holdco. Thus, they consider private credit as a very feasible option.

  5. AJAY SRINIVASAN THOUGHTS ABOUT PRIVATE CREDIT’S FUTURE IN INDIA According to industry leader Ajay Srinivasan, with rapid economic development in India, the demand for credit will have to be met by several providers in the coming years, and thus, the opportunity for private credit funds will be attractive. Besides, the growth of the private credit market can potentially unlock value for both investors and the economy as a whole, fostering innovation and job creation. With India on its way to becoming a $5 trillion economy, the requirement for capital across industries will increase in the coming years.

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