In short
Go direct when your bank has appetite, headroom, and a fair rate for a standard requirement — you cannot beat a relationship that already works. Use an advisory when the ask is large, urgent, structured, or already declined: a parallel process across three to five matched lenders is what moves pricing, covenants, and certainty. The fee is typically 0.5–2%, success-based; at ₹20 crore and above the competition it creates usually pays for it several times over.
The honest comparison
| Direct to your bank | Through a debt advisory | |
|---|---|---|
| Cost of the money | Usually the lowest rate — if approved | Rate discovered by competition, with a fee on top |
| Fees | None beyond bank charges | 0.5–2% success fee |
| Simplicity | One counterparty you already know | One more party in the room |
| Speed | 8–12 weeks typical, committee-driven | Parallel process; clean mandates in days |
| Certainty | Single point of failure — a policy "no" ends it | Three to five lenders; one "no" costs nothing |
| Terms and covenants | Standard paper, largely take it or leave it | Negotiated — prepayment, security scope, guarantees |
| Non-standard deals | Usually declined by policy | The actual use case — NBFC, AIF, private credit pools |
| Market visibility | You see one lender's appetite | You see the pool's appetite before committing |
| Confidentiality | Contained to your bank | Managed — file goes only to lenders you approve |
When direct is genuinely the right call
Strong financials, a standard requirement, an existing bank with headroom and appetite, and no urgency. Renewals and modest enhancements of existing limits belong here too — involving anyone else is friction without leverage. We tell callers this on the first conversation when it is true, and it is true more often than the industry admits.
When an advisory earns its fee
- Size. At ₹50 crore, 25 basis points over ten years is roughly ₹1.25 crore. Competition finds those basis points; a single quote cannot.
- A declined file. A bank "no" is policy, not the market's verdict — the work is rerouting to the pool that funds your profile. See the seven alternatives.
- Speed. Parallel beats serial. On acquisitions, auctions, and one-time settlements, days decide outcomes.
- Structure. Choosing between LRD, LAP, mezzanine, or last-mile funding is worth more than negotiating the rate on the wrong instrument.
- Exposure limits. Your bank likes you but is full on your group. You need the next lender without starting cold.
Common questions
Is it cheaper to go directly to my bank for a large loan?
On headline rate, usually yes — if your bank approves the full amount. Banks fund themselves with low-cost deposits and reward existing relationships. The comparison changes at scale: on a ₹50 crore, ten-year facility, 25 basis points is worth about ₹1.25 crore, and competition between three to five lenders often finds more than that in rate and terms combined.
Does using a debt advisor annoy my existing bank?
No. Banks work with arrangers routinely at this ticket size, and a professionally run parallel process is normal. What damages a borrower is the opposite: several agents shopping the same file to the same lenders without coordination, which shows up as duplicate submissions and weakens the file.
Can I run my own bank and an advisory process at the same time?
Yes, and it is often the best approach. Your bank competes as one of the three to five lenders approached. If the relationship wins on merit you take it — and you know it won on market terms rather than on the absence of alternatives.
When is a debt advisory not worth the fee?
When the requirement is standard, the amount is modest, your bank has appetite and headroom, and you are not in a hurry. Renewals and small enhancements of existing limits are the clearest example: involving another party adds friction without adding leverage.
Thirty minutes will tell you which side of this table you're on
Describe the requirement and what your bank has said so far. If the honest answer is "go direct", that is what you'll hear.
Talk to usPacewell Capital is a debt advisory and arranger, not a lender. All loans and facilities described here are provided by RBI-regulated banks, NBFCs, and funds, subject to their own credit approval, diligence, and documentation. Rates, fee ranges, and timelines stated on this page are indicative market observations as of July 2026 and are not offers or commitments.