Private Credit & Real Estate Debt
Being the lender instead of the depositor. Sound mid-sized companies pay 12 to 20% to borrow, secured. A private credit fund puts you on the lending side.
A Category II AIF, also available through GIFT inbound, that lends directly to performing companies and real-estate projects. Secured, covenant-protected loans that banks are too slow or too rigid to write. Interest comes back as regular payouts. Principal returns as loans mature.
By Yash Jhaveri, Founder & CEO, Beyond
Beyond · JSL Wealth Management · Vadodara · ARN XXXXX
Last reviewed September 2026 · Regulatory position as at September 2026
The job it does
- Double-digit income without equity volatility
- Regular quarterly/semi-annual cashflow
- Diversifying the debt book beyond FDs and bonds
Why people use it
- Contracted returns — repayment schedules, not market moods
- Security cover and covenants on each loan
- Low correlation with equity markets
What can go wrong
- Illiquid — capital is committed for the fund’s tenor
- Credit risk: defaults hit returns directly; underwriting is everything
- Fees and carry sit between the headline yield and you
Quick answers
What is the minimum investment in Private Credit & Real Estate Debt?
₹1 Cr. Typical horizon 3–5 yrs; liquidity 3–5 yr tenor, locked.
How is a Private Credit & Real Estate Debt taxed?
Cat II AIFs are tax pass-through — interest income is taxed in your hands at slab rate; capital gains as per the underlying asset. Fund deducts TDS on distributions.
What can go wrong with Private Credit & Real Estate Debt?
Illiquid — capital is committed for the fund’s tenor. Credit risk: defaults hit returns directly; underwriting is everything. Fees and carry sit between the headline yield and you.
Can an NRI invest in Private Credit & Real Estate Debt?
NRIs can invest in AIFs; TDS on distributions applies at treaty/act rates. GIFT inbound versions often simplify this further.
Does Private Credit & Real Estate Debt belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
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