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Local pvt credit on the rise as bad loans fade

Mint Mumbai

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September 05, 2023

Kotak, JM Financial, Edelweiss, Centrum explore alternative funding option

- Beena Parmar

Local pvt credit on the rise as bad loans fade

India's lending market is emerging out of its bad loan abyss with alternative asset managers and non-banking financiers floating private credit funds betting on the mid-market segment which offers opportunities for attractive returns.

This alternative funding option is witnessing a surge in the number of homegrown entities such as the Kotak group, JM Financial, Edelweiss and Centrum expanding their private capital beyond their existing equity funds.

Debt financiers and wealth managers such as Vivriti, InCred and Xander Group-backed Sanctum Wealth, are also vying to support small and medium sized enterprises (SMEs) with strong fundamentals which are currently untapped by the banks and non-banking financial companies (NBFCs).

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