Private Credit: Filling India's Funding Gaps

Real estate has become the largest deployment sector for private credit, as developer financing remains structurally underserved by traditional lenders. Real estate accounted for 42% of total private credit deal value in H2 2025, ahead of healthcare and industrial products at 15% each. RBI restrictions on bank financing for land acquisition and promoter contributions leave a significant portion of developer capital requirements outside conventional bank credit. And now Bank-group NBFCs have also become subject to equivalent restrictions, further expanding the role of private credit in developer finance. The market has matured beyond its origins in special situations. Construction finance, refinancing and structured developer capital now dominate private credit activity in real estate. At the same time, Industry estimates place the mid-stage construction funding gap at US$15–20 billion, making it one of India's largest private credit opportunities.   The market is entering a more demanding credit cycle. Housing sales have moderated across major markets, increasing developers' reliance on external capital. At the same time, the supply side of the market is becoming more competitive. SEBI has lowered the Large Value Fund threshold from ₹70 crore to ₹25 crore, while ECB and GIFT City reforms continue to expand access to offshore private credit. The webinar, "Private Credit and Indian Real Estate: Financing the Construction Gap," will examine how developer financing is evolving, how real estate credit is being underwritten, where funding gaps persist across the capital stack, and how regulatory change is reshaping the market for private credit.