Credit demand from women-led MSMEs doubles by end of festive months: NeoGrowth survey
Bengaluru, Nov 18 (KNN) As compared to the pre-pandemic festive season of July – October 2019, the credit demand from women-led MSMEs doubled by the end of the festive months of 2022, said a survey.
According to a report by NeoGrowth, a NBFC which focuses on lending to MSMEs on Thursday unveiled that this two-fold rise in credit requirements of women-led small businesses is driven by strong consumer demand post economic revival and subdued festive season spending over the past two years.
The top 3 cities which registered the highest credit demand from women-led MSMEs in 2022 are Bengaluru, Hyderabad, and Mumbai, as per the data.
Among the women borrowers, Fashion & Lifestyle, F&B, FMCG & Retail segments witnessed higher credit inquiries as compared to other sectors, as the festive period concluded in October this year.
Arun Nayyar, Whole-Time Director and CEO, NeoGrowth, said, “Over the past few years, India has witnessed a remarkable shift towards different modes of digital payments. We believe that the convenience and affordability of transacting through digital payments fuelled festive demand this year.”
“The festive season proved to be reasonably strong for the industry, after two years of Covid-19 disruption. Backed by this buoyant consumer demand pan-India, we registered that women MSMEs, in particular, sought more credit across business segments,” said Nayyar.
For the purpose of the festive credit demand analysis among MSMEs, the growth was computed basis the comparison of credit inquiries received from over 30,000 MSMEs during the pre-pandemic festive months of 2019 and 2022, i.e., July-October.
According to NeoGrowth’s data, the top 3 cities which showed tremendous credit demand in 2022 are Bengaluru, Hyderabad, and Mumbai. Other cities showing strong credit demand this festive season include Vijaywada, Ahmedabad, and Kolkata.
Overall credit demand from MSMEs in the FMCG and Retail segment showed a 2X increase in the 2022 festive months as compared to the same period in 2019.
There was a 70% surge in credit demand from Consumer Durables and Electronics retailers. Furthermore, the Fashion & Lifestyle segment witnessed a close to 40% uptick in MSME credit demand this year, as compared to 2019. (KNN Bureau)