NeoGrowth Disbursed 24% Loan To Women-led MSMEs In FY23

New Delhi, Aug 18 (KNN) About Rs 430 crore worth loans was availed by women-run MSME customers, as per the NeoGrowth Impact Report 2023. 

It accounts for a significant portion of 24% from overall loans (total disbursals of close to Rs 1,900 crore in FY 2023) to MSMEs.

The report also stated that over 2600 women-owned MSMEs availed business loans in the last fiscal. 

Released annually, the 9th edition of the NeoGrowth Impact Report showcases the transformative influence of the company’s loans on the lives of MSME borrowers, alongside its commitment to sustainable business practices, digital integration and fostering an inclusive credit ecosystem while maintaining the highest level of governance. The data covered in the report pertains to FY 2022-23.

Achieving UN’s Social Development Goals NeoGrowth’s approach to lending is centred on creating a positive impact by setting a distinctive standard for financial inclusion in India. Its business activities are aligned to 6 out of 17 United Nations SDGs. 

The company claims to have delivered on key UN SDGs including Good Health and Well-being; Gender Equality; Industry, Innovation and Infrastructure; Decent Work and Economic Growth in terms of value and volume.

The 17 social development goals are the key objectives set by the United Nations in 2015 towards sustainable development and were created to serve as a “shared blueprint for peace and prosperity for people and the planet now and into the future”. 

The company disbursed close to Rs 500 crore to MSMEs in Tier-II cities. Almost 50% of the total loans were advanced to emerging small businesses that have been in operation for less than or equal to 5 years. 

Based on an impact survey conducted with over 250 NeoGrowth customers across 7 cities, 84% of respondents were self-starters, who were the first in their families to establish a business. 

The interviewed MSME owners witnessed an 18% increase in female employees post availing a business loan from NeoGrowth. Almost 1/4th of the MSMEs expanded their business with the loan.

“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. MSMEs are driving the growth of India’s economy and will continue to spearhead the realisation of India’s USD 5 trillion economy vision,” Arun Nayyar, Managing Director & CEO of NeoGrowth said in a statement. 

The Company crossed the Rs 2,000 crore Assets Under Management (AUM) mark as on June 30, 2023, at the end of the first quarter of FY 2023-24. Present in 25+ cities and catering to 75+ MSME industry segments, NeoGrowth has disbursed over USD 1 Billion since its inception.   (KNN Bureau)