 |
| P2P Market data |
Blackstone says the private credit net worth now is 184 billion dollars, which gives (10–11)% in returns.
The question is, what exactly it is and how it works.
Basically, private credit is a company of investors that gives loans, in return for 10–11%.
The difference between private credit and traditional banks is; in traditional banks, you have to wait because its process is very slow.
On the other hand, private credit pays you loans without any documents.
It is too risky a process; therefore, its return rate is 2 times higher.
The bank's interest rate is 5% but its return rate is 10–11%.
Its demand is rising in healthcare, IT, life sciences, and energy.
Investors fund private loans.
Private loans are given directly to companies without passing through traditional banks, which give high returns to lenders.