Over 22 percent of Small Firms Receiving Loans in FY22 were run by Women, NeoGrowth Report

By: WE Staff | Thursday, 4 August 2022

According to the annual Social Impact Report by MSME-focused digital lender NeoGrowth, over 22% of small enterprises that received loans in the fiscal year 2022 were owned and operated by women. The report highlighted that loan disbursals to women borrowers have increased exponentially at a compound annual growth rate of 72% since FY 2015, "signifying gender equality," based on a survey of 250 NeoGrowth clients in 7 cities.

NeoGrowth stated that it also supported the government's financial inclusion agenda by providing loans to emerging small businesses that have been operating for less than or equal to five years, at a 60% rate, to young entrepreneurs under the age of 35, at a 36% rate, and at a 38% rate to small-ticket, less than or equal to INR 1olakhs.

“MSMEs are the drivers of India’s economic and social development and are poised to play a critical role in catapulting India’s GDP to realise its $5 trillion dream. It is our responsibility to be a larger catalyst and trusted partner in MSMEs’ digital transformation journey and business growth story by facilitating lending to meet the evolving business needs of small and medium businesses across India,” said Arun Nayyar, Whole Time Director & CEO of NeoGrowth in a company statement.

With awareness of health and wellness at an all-time high, even in the MSME community, the study found that 92% of respondents had access to healthcare coverage in FY 2021–2022. The yearly study investigates the direct positive social impact of NeoGrowth's commercial activities on job creation, entrepreneurship among women, and credit score improvement.

Depending on the type of loan and the borrower's company performance, Neogrowth offers loans to retailers, shops, merchants, manufacturers, wholesalers, traders, distributors, etc. in the range of Rs 1 lakh to Rs 75 lakh with terms ranging from six months to 36 months. The loan book of the company increased by 140% over a nine-year period (2013–2022), reaching Rs 1,559 crore in assets under management (AUM) in FY22.

It currently provides MSMEs with services in over 70 industries and 25 cities.

An earlier this year released report from the International Finance Corporation (IFC) and Intellecap indicated that the country's 83,600 crore worth of women-owned very small businesses (WVSEs) needed loans.