MSMEs' credit demand bounced back stronger post-pandemic, revealead a new report from NeoGrowth, a MSME-focused fintech firm.
The report -- titled MSME Insight Report 2022 –Rising In The Face of Adversity -- pointed out that over 46 per cent MSMEs across the country require financial support in order to escape the impact of COVID-19. The report showed that MSMEs were far better prepared during the second wave of the pandemic, with 30 per cent MSME firms requiring financial support.
The report is based on a comprehensive assessment of a base of over 40,000 MSMEs from over 25 cities across 88 unique industries, analysed by the company from March 2020 to March 2022. The survey covered MSMEs in both discretionary and non-discretionary demand-oriented businesses, and examined the challenges they encountered during the pandemic, the impact of support measures on their recovery and the shift to digital means of doing business in these two years.
Arun Nayyar, Whole Time Director & Chief Executive Officer, NeoGrowth said, “Many MSMEs were struggling in 2020-21 due to the burden of loan repayments because of the cessation of demand from consumers. Early on in the pandemic, we identified that MSMEs needed extra support since this was a genuine business disruption. We realized that MSME customers were inherently honest and had the willingness to pay back. NeoGrowth handheld them throughout their journey, right from proactively understanding their sentiments at the beginning of the pandemic to supporting them so they are able to bounce back.”
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