Loans for women entrepreneurs: Over 2,600 women-owned MSMEs availed Rs 430 crore loans accounting for 24 per cent of overall Rs 1,900 crore loans disbursed by digital MSME lender NeoGrowth in the financial year 2022-23, a company report NeoGrowth Impact said on Thursday.
Moreover, out of total loans, 50 per cent were to emerging small businesses that have been running for at least five years. In terms of geography, 26 per cent of the loans (nearly Rs 500 crore) were disbursed to MSMEs in Tier-2 cities. Also, 17 per cent of loans advanced by NeoGrowth in FY23 resulted in employment generation.
Also read: MSME loans: Credit outstanding by banks jumps 12% in FY23; 49% growth in 5 years
The report was based on a survey conducted with over 250 NeoGrowth customers across seven cities. 84 per cent of respondents were self-starters, who were the first in their families to establish a business. The interviewed MSME owners witnessed an 18 per cent increase in female employees post availing a business loan from NeoGrowth and almost one-fourth of the MSMEs expanded their business with the loan.
“It is our unwavering commitment to empower first-generation entrepreneurs, support women-run businesses, and promote financial inclusion, thereby contributing to a thriving and inclusive economy. MSMEs are driving the growth of India’s economy and will continue to spearhead the realisation of India’s $5 trillion economy vision,” said Arun Nayyar, Managing Director & CEO, NeoGrowth.
The company had crossed Rs 2,000 crore Assets Under Management (AUM) mark as on June 30, 2023, at the end of the first quarter of FY24. Present in over 25 cities, NeoGrowth said it has disbursed over $1 billion since its inception.
Meanwhile, according to the government data, the credit outstanding to the MSME sector by scheduled commercial banks in the financial year 2022-23 grew by 12.3 per cent to Rs 22.6 lakh crore from Rs 20.11 lakh crore in FY22. As per data shared by Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry in a written reply to a question in the Rajya Sabha in July, the amount outstanding in FY21 and FY20 stood at Rs 17.83 lakh crore and Rs 16.13 lakh crore respectively.
