Piramal Finance, the shadow lending arm of billionaire Ajay Piramal Piramal Group, is planning to raise up to $1 billion through foreign currency loans this year to support growing demand for retail credit in India.
According to CEO Jairam Sridharan, the Mumbai-based NBFC intends to primarily tap foreign banks and multilateral agencies, with loan tenors ranging between three and five years.
The planned fundraising comes at a time when the Indian rupee remains under pressure against the US dollar, increasing hedging costs for companies borrowing overseas. Despite the currency volatility, Piramal Finance believes offshore borrowing remains attractive after factoring in overall funding costs and hedging strategies.
Indian companies have increasingly turned to overseas borrowing markets to benefit from lower interest rates, longer repayment periods, and diversified lender access. According to RBI data, external commercial borrowings (ECBs) by Indian firms rose to $4.63 billion in February, compared to $2.82 billion a year earlier.
Sridharan also indicated that current conditions in the global bond market are not ideal due to ongoing geopolitical uncertainties, prompting the company to focus more on foreign currency loans rather than bond issuances. The NBFC is additionally exploring borrowing in currencies beyond the US dollar to diversify risk.
The fresh capital will primarily be used to expand Piramal Finance’s retail lending portfolio, which includes mortgages, loans against property, and used vehicle financing. The company has emerged as one of India’s fastest growing shadow lenders in the consumer credit segment.
Piramal Finance’s assets under management (AUM) have doubled to ₹1 trillion ($10.5 billion) over the last five years, and the company expects the figure to grow another 50% over the next two years.
India’s NBFC sector continues to benefit from rising consumer demand and increased financing gaps left by traditional banks. According to Crisil, AUMs of NBFCs are expected to grow 18–19% annually through FY27, supported by consumption-led credit demand.
The move underscores growing confidence among Indian NBFCs in tapping global capital markets to fund domestic expansion amid accelerating retail credit growth.
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