Steep rise in MSME loans in Q2 FY24

Hyderabad Theongoing festive season has led to a sharp increase in demand for MSME business loans, with a 73 per cent YOY (year-on-year) jump across the country, according to Paisabazaar, a leading marketplace for consumer credit. The rise across India was witnessed during Q2 (July-August-September) in FY-24 while the month of September 23 saw a 57 per cent jump (YOY) in demand. Paisabazaar analysed demand for unsecured loans on its platform from MSMEs operating across 700 cities of the country.

Demand in non-metro cities grew faster vis-a-vis metro cities during the festive season. During Q2 FY-24, demand in non-metro cities grew 74 per cent and by 69 per cent in metro cities. This demand during the month of September-23 saw a 58 per cent rise in non-metro cities and by 52 per cent in metro cities.

Naveen Kukreja, Co-Founder and CEO, Paisabazaar, said: “The self-employed and MSME segments have been traditionally underserved, leading to a massive credit gap. But with rising digitization, a gold-standard digital public goods infrastructure in place along with a new data ecosystem, powered by credit bureaus, Aadhaar, GST and Account Aggregator, coming into play, we should see the lending industry expand and reach credit-starved segments like MSMEs. At Paisabazaar, we remain focused on meeting the increased demand for credit from varied segments with more accurate offers, the best products and seamless processes to help drive inclusion.”