Private credit market intelligence — September 2026

Purple Finance's 11.90% monthly-coupon NCD at 30-month tenure provides a useful anchor. This is a listed NBFC with rated paper — its pricing sits at the lower end of what private credit markets currently offer. Mid-market corporate borrowers — real estate developers, MSME manufacturers, healthcare operators — without listed entity status or existing rating history typically access private credit at 13-16% per annum, reflecting the additional due diligence premium and the absence of public market pricing signals.

The gap between NBFC NCD pricing (9-12%) and mid-market corporate NCD pricing (13-16%) is structural, not temporary. It reflects the difference between lenders underwriting rated, liquid instruments with regulatory oversight and lenders underwriting private, illiquid credit requiring bespoke due diligence. For mid-market borrowers, this 200-400 basis point premium is the cost of accessing capital outside the conventional bank and NBFC channel.

The more relevant question for a real estate developer or MSME manufacturer is not what NBFC paper prices at — it is whether they can access private credit at all, and at what terms. September 2026 data confirms that capital is available in the mid-market. The constraint is not capital availability but credit package quality and lender matching.

Real estate remained the largest private credit deployment sector through Q2 2026, accounting for 35% of deal value. Construction finance — the specific instrument most residential and commercial developers need — continues to be driven by Category II AIF deployment, with domestic funds accounting for 74% of deal value.

Two dynamics are shaping real estate private credit pricing in September 2026. First, the IBC Amendment Act 2026 has improved creditor protection mechanics, which is gradually compressing the risk premium that lenders demand from quality developers with strong track records. Second, the volume of refinancing transactions — developers replacing expensive 2021-2022 vintage debt with better-structured 2026 facilities — is creating competition among lenders for quality credit mandates, which further improves pricing availability.

For a Tier 1 developer with a clean track record, adequate security, and a well-structured credit package, construction finance at 12-14% per annum is achievable in September 2026. The same developer approaching lenders without a structured credit package or with pending legal complications on proposed security assets will find the market significantly less accommodating.

The private credit market is active. The lenders are deploying. The pricing — while higher than bank debt — is accessible for quality borrowers with clean credit stories.

What separates businesses that close in 45-60 days from those that take 6-9 months is not market conditions. It is preparation — specifically the credit information memorandum, the security package documentation, and the quality of the repayment mechanism presented to lenders.

Eone Capital's active private credit mandate pipeline currently stands at ₹940 crore across three real estate transactions as of September 2026, with ₹320 crore successfully closed. Two active mandates are currently in placement — details available for registered investors.