Private Credit Funding

The banking system of any country is a major contributor to the Economy. Governments and Bankers always put in the effort to carry out all the economic transactions through the banking system. However, the banking system works in a defined framework. And there are always some exceptions to the standard condition when it comes to fundraising.

This is where private credit funding comes into the picture, where the business crosses certain operational limits and cannot fit with regular banking operations. Or there are certain scenarios of the business that bankers cannot fund.

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Key Features Private Credit Funds

What is Private Credit Funding?

Private credit funding is an unconventional way of fundraising. It refers to lending by non-bank institutions (alternative investment funds, private credit funds, direct lenders) to corporates, especially those that may not fit the standard bank mold. It helps you avoid equity dilution and offers more flexibility than conventional bank debt.

The private credit market in India is experiencing rapid growth. What this means for promoters/directors in an Indian metro or industrial hub: You have more options than banks, especially if you’re pursuing capacity expansion, acquisition, refinancing, or structured growth in sectors like manufacturing, EV, biotech, hospitals, or automation.

Benefits of Private Credit Funds

1. Works under Government Regulations

Private Credit funds work internationally. They are always very clear about government rules and regulations. All private debt players are RBI (Reserve Bank of India) and SEBI (Securities Exchange Board of India) license holders. Lenders always make sure the funding does not violate any of the government or RBI norms. It is 100% safe and secure to borrow money.

2. Highly Flexible

Unlike the banking system, the norms in private credit are very flexible. The solution can be arranged at the convenience of the client. There is no hard and fast structure to be followed. The amount can be arranged in a term loan format or maybe in other required formats; the term can be flexible, the repayment structure can be flexible, and the EMI structure can be flexible. So, in short, all the possibilities can be arranged as long as they help the business to grow.

3. Fast Execution

The turnaround time to execute the proposal under private credit is very short. This is because there are not many authority levels involved. The structure in the fund houses is very flat. And the fund houses are very aggressive about the funding.

4. High Exposure Amount

The private credit players work in international markets with high ticket sizes. So, there is no upper limit on the required amount. As long as the client matches the expectations and meets the fund houses’ criteria, there will not be any concern about the upper exposure limit. The fund houses can take exposure up to some thousand crores.

5. No Equity Dilution

The amount is lent in debt format. So there is no question of equity dilution. Lenders will be comfortable as long as they are getting paid for their interests and principles. However, there is always flexibility in the repayment of the debt. The lender may propose some equity. However, the terms and conditions are mutually agreed upon. Nothing goes forward unless it is mutually agreed upon by both parties.

6. Growth Hacking

When any private credit player infuses funds into any business, they make sure the business gets all the required fuel to grow. The fund houses will make sure you get connected to all the required major players from the market, where you can push the growth.

7. Long-Term Association

The long-term association helps everyone. The same applies to private credit funding. Whenever private debt players infuse the funds, they make sure there is a long-term association with the client. So, this will stand as a win-win condition for both private debt players and clients.

8. Industry Expert

Private credit players do not infuse the funds unless they are well-versed in the industry. So the borrower does not have to put in the effort to make the lender understand industry challenges. Rather, lenders help borrowers deal with the industry challenges in the best way possible.

9. Professional Approach

The lenders work across the globe. They understand their areas of expertise and operation. They always have a professional approach to dealing with the borrower. Lenders will always make sure there is an operational obligation to the borrower. So, the borrower can execute the operation in his own style.

Private Credit Funds at Terkar Capital

At ‎Terkar Capital, we position ourselves as your strategic partner in accessing private credit funding. We offer flexible and unconventional financing solutions for businesses that may not fit traditional banking operations. We provide fast execution of funding proposals with high exposure amounts and no equity dilution. However, our focus is on long-term associations with clients, bringing industry expertise and a professional approach to help businesses navigate challenges and fuel growth.

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FAQs On Private Equity Funds

The credit facility can be arranged in dollars or in rupees, as per the convenience of the borrower. However, it is suggested that if the borrower is not exposed to foreign currency (either through income or expenses), then funding should be taken in rupees only.

The rate of interest will be in sync with the Indian economy, inflation rate, and MCLR. However, funding currency will be a determining factor.

Yes. The term “private credit funding” emphasizes the borrower-side advantage rather than generic “private debt”. It reflects structured alternative finance beyond banking.

As the private debt funds follow a flat operational structure, there is no time-consuming process for sanctions. It works way faster than normal banking channel operations.

Private credit can be used for refinancing, bridging, or expansion aligned with your bank debt.

Yes. As this funding is in debt format, collateral is required. However, there will be total flexibility on the collateral part which can be mutually decided.

Yes. Very much. Private debt players follow all the rules and guidelines laid down by the RBI and the Government of India.

We Facilitate the Following Funding Instruments

Client Feedback

What our clients think about us?

N Nihalani

We have had a smooth experience with all our capital arrangements facilitated via Terkar Capital so far. Its very comforting to work with people as professional and straightforward as Vishal and the rest of his team. Thanks for everything.

C Sonawane

Thank you Terkar Capital for processing my business loan in just a few working days. Very professional & skilled team. They understood my requirements to a level that were beyond my expectations from any lending company. I strongly recommend Terkar Capital.

24th Mile

We are very thankful to Terkar Capital for your efforts in arranging facility. Their approach is very simple, professional, and fast! The team is highly responsive that executed the process in short span of time without any hassles. Great work... Thank you!

M Dwivedi

I got an unsecured business loan within 7 working days .their specialized experts verfied all the documents and granted me the loan .getting a business loan from terkar capital is the easiest way to get a loan.