In the upcoming year, micro, small, and medium enterprises (MSMEs) are poised to sustain their demand for credit as they aspire to grow their ventures. A recent survey conducted by NeoGrowth, a lending platform specializing in MSMEs, revealed that nearly 60% of businesses across various sectors anticipate the necessity for credit in 2024.
Among these sectors, namely wholesale, trading, and services, a noteworthy 64% of businesses express the intent to secure credit to enhance their operational capacities, as highlighted in the study. The keenest appetite for loans is projected to be observed in metropolitan centers like Bengaluru, Pune, and Delhi.
NeoGrowth stated in a release that the top three factors influencing loan provider selection in 2024 would be prompt disbursals, a digitally enabled loan application process, and favorable deal terms. The statement further pointed out that MSMEs in Delhi exhibit a preference for lenders offering a digital loan process, while those in Pune prioritize providers with swift approval and disbursal processes.
The survey indicates that 60% of MSMEs are planning to open new stores and introduce fresh products or services to their customers in the current year. Notably, MSMEs in Bengaluru, Delhi, and Pune exhibit a strong inclination towards expanding their market presence.
NeoGrowth’s findings also reveal that approximately 44% of MSMEs intend to hire additional employees in 2024, with the highest expectations coming from MSMEs in Bengaluru and Pune.
Encouragingly, around 90% of MSMEs express optimism about India’s economy in 2024, as highlighted by the survey’s results.
