Crediting the rapid urbanization in the country, backed by economic activities in Tier 2 and Tier 3 cities, the report stated that about 50 per cent of the demand for credit originates from Tier 3 cities and beyond.
MSME loans during festive season: Digital MSME lender Flexiloans on Monday said it expects a 40-50 per cent jump in MSME loan applications on its platform, exceeding 10 lakh in number during the third quarter of the current financial year involving the festive season. In a report released by the NBFC, it noted that Rs 1,500 crore loan disbursement is expected during this year’s festive season.
The report further added the festive season is likely to see a 15 per cent growth in job opportunities and a 50 per cent surge in sales in segments including consumer durables and cars. Additionally, over 20 per cent growth is estimated in jewellery, fashion and footwear sectors.
Crediting the rapid urbanization in the country, backed by economic activities in Tier 2 and Tier 3 cities, the report stated that about 50 per cent of the demand for credit originates from Tier 3 cities and beyond.
“The festive season is a colossal opportunity for businesses and consumers alike. At FlexiLoans, we have witnessed an unwavering trend of robust loan demand during this period, emblematic of the thriving economic sentiment,” said Manish Lunia, Co-Founder, FlexiLoans.
The company provides non-collateral MSME loans with an average ticket size of less than Rs 10 lakh. So far, it has disbursed more than 65,000 loans amounting to Rs 4,000 crore in the past seven years.
Meanwhile, the 2023 festive season is likely to see a gross merchandise value of around Rs 90,000 crore, up 18-20 per cent from last year’s festive month sales, according to a recent report from consultancy firm RedSeer Strategy Consultants. This will be driven by around 140 million shoppers who are likely to transact only at least once during this festive month.During July 2023, Rs 20.86 lakh crore bank credit under priority sector lending — 14.1 per cent of India’s total non-food bank credit worth Rs 147.8 lakh crore — was deployed in the MSME sector against Rs 21.14 lakh crore deployed in June. In July 2022, Rs 18.03 lakh crore – 14.6 per cent of non-food bank credit worth Rs 123.3 lakh crore — was deployed in the MSME sector, according to the latest sectoral deployment data from the Reserve Bank of India (RBI).