Private Credit Is Growing in India. Borrowers Need to Read the Fine Print: Dubai-based senior banker and investor relations professional Gulamaly Hussain
Business

Private Credit Is Growing in India. Borrowers Need to Read the Fine Print: Dubai-based senior banker and investor relations professional Gulamaly Hussain

Private Credit Is Growing in India. Borrowers Need to Read the Fine Print: Dubai-based senior banker and investor relations professional Gulamaly Hussain

TBT Online Desk
September 19, 2026 4 Min Read
New Delhi [India], September 18: Private credit has moved from the margins of India’s funding conversation into the boardroom. We need to examine why India’s growing private-credit market, GCC investor interest and Dubai-India capital flows require borrowers to look beyond the interest rate and prepare for the full discipline of repayment. An EY update released in August recorded US$3.5 billion of private-credit investments in the first half of 2026 across 102 tracked transactions above US$10 million. Domestic funds accounted for 74% of deal value and about 79% of deal volume. The figures do not describe every form of debt raised in India, but they show how quickly alternative financing, private capital and structured credit have become part of the mainstream India funding conversation, including for Dubai-based and GCC investors evaluating Indian businesses. The shift matters most for mid-market companies in India. Bank finance remains central, yet a bank’s risk appetite, collateral requirements or approval timetable may not fit a business that is acquiring another company, refinancing an existing facility or investing ahead of a visible growth opportunity. Private credit can offer a more negotiated structure and direct access to a lender. That flexibility is useful, especially in India-Dubai and India-GCC fundraising conversations, but it does not make the capital forgiving. A borrower should begin with the purpose of the money, not the availability of the cheque. Growth capital, acquisition finance and refinancing create different repayment profiles. A company funding a productive asset may have time for cash flows to build. A refinancing exercise may simply move a maturity date forward. If management does not distinguish between those situations, a convenient source of capital can become an expensive way of postponing a harder decision, whether the lender is domestic, Dubai-based, Gulf-based or part of a wider GCC private-credit platform. This is where the headline interest rate can mislead. The real cost of private credit includes the repayment schedule, upfront fees, security, information undertakings, cash sweeps and financial covenants. A covenant is a recurring test of whether the business is still operating within the assumptions on which the lender approved the financing. A company that negotiates the rate but ignores the covenant package has not completed the financing analysis. For Dubai, GCC and Gulf investors assessing Indian private-credit opportunities, covenant discipline and transparent reporting are often as important as the stated return. The same discipline should shape the business plan presented to lenders. Private-credit investors spend considerable time on due diligence because they are lending against expected cash generation and downside protection. They will examine customer concentration, working-capital cycles, promoter support, reporting quality and the assumptions behind EBITDA. Management teams should be ready to explain what happens if revenue arrives later, margins narrow or a major customer pays slowly. The credible answer is not a perfect forecast. It is a plan that shows how the company will respond when the forecast is tested, particularly when the capital conversation involves Dubai investors, GCC family offices, Gulf institutions or cross-border lenders. There is also a communication issue. Equity fundraising gives greater space to market size, expansion plans and the upside case. A credit investor has to understand how the money comes back. The strongest borrower presentations connect strategy to cash flow: what the capital will fund, when it should produce returns, which risks could interrupt repayment and what controls will be used if performance falls short. This is investor communication in its most practical form, and it is especially relevant for India-Dubai investor relations, Gulf fundraising, GCC capital raising and cross-border private-credit communication. For Indian companies seeking private credit from Dubai-based or wider GCC investors, the communication challenge becomes cross-border as well as financial. A borrower must explain its Indian operating environment while presenting its cash flows, security package, governance standards and repayment plan in a way that an overseas lender can assess confidently. Investors in Dubai, the UAE, the Gulf region and the wider GCC may understand the region well, but they will still expect clarity on currency exposure, regulatory conditions, promoter support and the risks that could affect repayment. According to Dubai-based investor relations and fundraising professional Gulamaly Hussain, the borrower’s ability to communicate repayment discipline can be as important as the growth story itself. The growing role of domestic funds may improve access for Indian companies that need a lender who understands local operating conditions. That growth does not mean lenders are lowering their standards. EY’s data shows that the market was broadly steady against the second half of 2025, even as the composition of capital changed. That is a more useful reading than treating private credit as a limitless pool of money. Lenders are becoming more active, but they are also comparing risk more carefully across India, Dubai, the UAE, GCC markets and other Gulf investment corridors. Companies should be cautious about using short-term relief to hide a structural cash-flow problem. The Financial Stability Board has noted that payment-in-kind arrangements and other liquidity measures can help a borrower manage immediate pressure while increasing total debt over time. A deferral can be sensible when it bridges a temporary mismatch. It becomes dangerous when it replaces operational repair or a realistic restructuring conversation. For borrowers approaching Dubai-based private-credit investors or GCC capital providers, repayment visibility, governance and cash-flow transparency should not be treated as last-minute documentation. Private credit is now a genuine funding choice for Indian businesses, particularly in the mid-market. The right question is not whether a company can secure the capital. It is whether the company understands the obligations that come with it and can explain them clearly to its board, shareholders and lenders. Borrowers that approach the process with transparent numbers, realistic downside planning and a clear use of funds are more likely to secure capital on terms they can live with. Those that focus only on speed may discover that flexibility has a price long after the transaction closes. In India-Dubai and India-GCC fundraising, the better-prepared borrower is usually the one that can turn private credit into patient capital rather than pressure capital. Website: www.gulamalyhussain.com LinkedIn: https://www.linkedin.com/in/gulamaly-hussain-a9612b25

Share Article

Read Next