Amid the upcoming festival season, demand for loans is likely to increase by 11 per cent, far higher than the moderate growth of 7 per cent seen in the first quarter of this year, according to a survey by FlexiLoans. The survey also estimated a 40-50 per cent spike in loan applications and double growth in disbursals. The leading MSME-focused fintech digital NBFC in India, FlexiLoans, has declared that it anticipates a high demand for loans during the forthcoming holiday season.
The upcoming festive season is poised to be a robust economic driver, with the potential to create a substantial 15 per cent increase in employment opportunities and a remarkable sales surge of over 50 per cent in categories such as consumer durables and automobiles.
“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,” Manish Lunia, Co-Founder of FlexiLoans commented.
Specific sectors like jewellery, fashion, and footwear are anticipating a notable sales increase of more than 20 per cent. Both the consumer durables and automotive industries are on the verge of experiencing exceptional sales growth, expected to exceed 50 per cent. At the same time, segments such as jewellery, fashion, and footwear are gearing up for an impressive sales boost of over 20 per cent.
“As we enter this festive season, FlexiLoans remains steadfast in our mission to bolster the growth of small and medium-sized businesses. We take immense pride in being pioneers of financial access and empowerment, especially in emerging markets and tiered cities. Our unique loan offerings, strategic partnerships, and cutting-edge digital underwriting capabilities empower us to respond swiftly to the ever-evolving needs of our diverse customer base,” stated Ritesh Jain, Co-Founder of FlexiLoan.
With an anticipated demand of ₹90,000 Crores during this festive season, it reflects an astonishing growth of 18-20 per cent compared to the previous year. This rapid surge in online shopping has also triggered a substantial increase of 40-50 per cent in consumer borrowing, primarily fueled by the enticing Buy Now, Pay Later (BNPL) promotions, report further stated.