New Delhi, August 17, 2023: In a significant stride towards financial inclusion and empowerment, women-run small and medium enterprises (MSMEs) availed loans totaling INR 430 crore, accounting for a substantial 24 percent of the overall loans disbursed to MSMEs in FY 2023, which amounted to nearly INR 1,900 crore. These insights were revealed in the NeoGrowth Impact Report 2023.
The report highlighted that over 2,600 women-owned MSMEs accessed business loans during the previous fiscal year. NeoGrowth, a digital lender in India with a focus on MSMEs, provided these loans by leveraging the digital ecosystem.
Released annually, the 9th edition of the NeoGrowth Impact Report exemplifies the transformative impact of the company’s loans on the lives of MSME borrowers. The report also underscores NeoGrowth’s commitment to sustainable business practices, digital integration, and fostering an inclusive credit ecosystem while adhering to the highest standards of governance. The data included in the report pertains to the financial year 2022-23.
NeoGrowth’s lending approach is centered on creating a positive impact and setting a distinctive standard for financial inclusion in India. The company’s business activities align with six out of the 17 United Nations Sustainable Development Goals (SDGs), and NeoGrowth continually strives to contribute holistically to these goals. The company has made strides in key UN SDGs including Good Health and Well-being, Gender Equality, Industry, Innovation and Infrastructure, and Decent Work and Economic Growth in terms of value and volume.
The 17 SDGs, set by the United Nations in 2015, serve as crucial objectives for sustainable development. They were established to guide global efforts towards achieving peace, prosperity, and sustainability for present and future generations.
NeoGrowth disbursed approximately INR 500 crore to MSMEs in Tier-II cities. Nearly half of the total loans were extended to emerging small businesses that have been operational for five years or less.
Based on an impact survey conducted with more than 250 NeoGrowth customers across seven cities, 84 percent of respondents were self-starters, being the first in their families to establish a business. The surveyed MSME owners witnessed an 18 percent increase in female employees after availing a business loan from NeoGrowth. Furthermore, around one-fourth of the MSMEs expanded their businesses with the obtained loans.
Arun Nayyar, Managing Director & CEO of NeoGrowth, commented, “At NeoGrowth, we are not only building a sustainable, inclusive and purposeful ecosystem for MSMEs in India to bridge the credit gap but also achieving six important social development goals set by the United Nations, thereby contributing towards holistic growth. It is our unwavering commitment to empower first-generation entrepreneurs, support women-run businesses, and promote financial inclusion, thereby contributing to a thriving and inclusive economy.”
The loans extended by NeoGrowth have a cascading effect on MSMEs, encompassing job creation, credit score enhancement, promotion of female entrepreneurship, and digitalization of MSMEs, among other benefits.
