Fintech Lenders Gear Up for Festive Surge with 15-20% Demand Boost
Digital lending platforms project an average increase of 15-20% in overall disbursals during the festival period, facilitated by easy access to credit and various offers, benefits, cashback, and zero-fee deals. Manika Mittal, Communications Head at BalanceHero India, states that the retail sector foresees a promising year, with a substantial 15-20% increase in demand expected in the digital lending sector. NeoGrowth, a Mumbai-based platform, aims to achieve ₹750 crore in quarterly credit disbursals during the current festive season.
Festive season credit demand typically builds up two to three months before the festivals, with retail MSMEs requiring credit to stock up on inventory for the anticipated surge in consumer demand. Loan applications start increasing from August and continue for the next 2-3 months, according to Arun Nayyar, MD and CEO of NeoGrowth. The rise in demand has been particularly significant for short-term loans, with an anticipated 20% YoY rise in disbursement this festival season. While banks and NBFCs have traditionally dominated this segment with offers on cards for consumers and business loans for merchants, the fintech lending industry is seeking a larger share of the credit market.
Loan inquiries have surged by 150% in recent months compared to last year, according to Hardika Shah, founder of Kinara Capital. Business loans to MSMEs are expected to see a 20% rise this festival season, driven by component manufacturers in consumer durables, automobile industries, and textiles. The rise in demand and disbursement is aligned with the projection of increased consumer spending in the upcoming months. Fintech lending platforms are actively competing for a larger share of the credit market, emphasizing their role in shaping the festival season credit landscape.
The digital lending industry is gearing up for a robust festive season, anticipating a substantial 15-20% increase in overall disbursals. Fueled by easy access to credit and a plethora of offers, the retail sector foresees a promising year, with digital lending platforms playing a crucial role in meeting the heightened demand. NeoGrowth”sambitious target of ₹750 crore in quarterly credit disbursals reflects the significant credit demand building up among retail MSMEs in preparation for the festive surge in consumer activity. The surge in short-term loan demand, coupled with a projected 20% YoY rise in disbursement, underscores the industry”s responsiveness to evolving consumer needs.
As the festive season unfolds, the fintech lending sector is poised to challenge the traditional dominance of banks and NBFCs in the credit market. The surge in loan inquiries, marked by a 150% increase compared to last year, signifies a growing appetite among consumers for digital lending solutions. The expected 20% rise in business loans to MSMEs, particularly driven by component manufacturers in key sectors, aligns with projections of increased consumer spending in the coming months.
In this competitive landscape, fintech lending platforms are actively shaping the credit landscape of the festival season, emphasizing their role in providing accessible and innovative credit solutions. The industry”s focus on short-term loans and tailored offerings reflects a strategic alignment with evolving consumer preferences. Overall, the festive season of increased demand and disbursement serves as a testament to the fintech lending industry”s resilience and adaptability in catering to dynamic consumer financial needs.
