The rise has been most significant for short-term loans
With consumer spending expected to grow manifold this festive season, MSMEs are leaving no stone unturned. They are pulling out all the stops, whether it is stocking up inventory or increasing their production schedule, MSMEs are gearing up to capitalize on the opportunity effectively. The heightened rate of activity is having a ripple effect on the demand for business credit as well. Hardika Shah, Founder & CEO Kinara Capital, estimates: “At Kinara Capital, in comparison to last year, the loan enquiries in recent months have shot up by 150%. Similarly, the disbursement is also at a higher rate, there is a 11% month-on-month rise in disbursement. The rise has been most significant for short-term loans. Component manufacturers catering to consumer durables as well as automobile industries and textiles are the leading sub-sectors driving the demand for business loans. Stock purchase, procurement of raw materials, business premises renovation etc are the reasons that they need credit for. As consumer spending is projected to rise further in the upcoming months, the demand and disbursement is also expected to shoot up. We are anticipating a 20% Y-o-Y rise in disbursement this festive season.”
