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Business
Indian Private Credit Funds Turn to AI for Deal Sourcing, Underwriting, EY Says
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🗓 22 Aug 2026, 02:02 PM
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A recent EY survey indicates that private credit funds in India are increasingly deploying artificial intelligence to identify investment opportunities and assess risk during underwriting.
A new EY study shows that private credit managers across India are rapidly integrating artificial‑intelligence tools into their deal‑sourcing and underwriting workflows. The research, based on responses from leading funds, highlights a clear shift from traditional manual screening to algorithm‑driven analysis.
Fund managers cite AI’s ability to process vast amounts of financial data, market signals and alternative datasets as a key advantage. By automating the initial screening, firms can pinpoint high‑potential borrowers faster and apply predictive models to gauge credit risk more accurately.
While the technology promises efficiency gains, EY notes that firms must navigate data‑privacy regulations and ensure model transparency. Industry observers expect the AI adoption curve to steepen as more funds invest in proprietary analytics platforms and partner with fintech providers.
Fund managers cite AI’s ability to process vast amounts of financial data, market signals and alternative datasets as a key advantage. By automating the initial screening, firms can pinpoint high‑potential borrowers faster and apply predictive models to gauge credit risk more accurately.
While the technology promises efficiency gains, EY notes that firms must navigate data‑privacy regulations and ensure model transparency. Industry observers expect the AI adoption curve to steepen as more funds invest in proprietary analytics platforms and partner with fintech providers.