The demand for credit from micro, small and medium (MSME) enterprises will continue this year as such entities look to expand their businesses.
A study conducted by NeoGrowth, an MSME lending platform, showed that nearly 60% of businesses across all sectors anticipate the need for credit in 2024.
The wholesale, trading and services sectors expect the highest demand, with 64% of businesses seeking credit to boost their operations, according to the study.
The appetite for loans is expected to be the strongest in metropolitan hubs such as Bengaluru, Pune and Delhi.
“The top three factors for consideration while choosing a loan provider in 2024 would be quick disbursals, digitally enabled loan journey and deal terms,” NeoGrowth said in a statement.
It added that the highest number of MSMEs in Delhi would choose a lender with a digital loan process, while those in Pune prefer loan providers with fast approvals and disbursals.
According to the study, 60% of MSMEs plan to open new stores and offer new products or services to their customers this year. The MSMEs in Bengaluru, Delhi and Pune have shown willingness to expand their presence.
According to NeoGrowth, around 44% of MSMEs plan to hire more employees in 2024, of which the maximum is expected by MSMEs in Bengaluru and Pune.
Around 90% of MSMEs are optimistic about India’s economy in 2024, the study showed.