FMCG, kirana, garments: Which MSME sectors are seeking the most festive credit?

FMCG and kirana businesses are expected to see the sharpest rise in festive-season credit demand among MSME segments in 2026, followed by ready-made garments and consumer durables and electronics, as businesses prepare inventory ahead of higher festive consumption.

According to the FlexiLoans MSME Pulse – Festive Edition FY27, loan inquiries from the FMCG and kirana segment are projected to rise 42% year-on-year during September-December 2026. Ready-made garments follow with projected growth of 38%, while durables and electronics are expected to see a 31% increase.

FMCG, kirana lead demand

The report attributes the increase in festive credit demand to the timing of inventory purchases. Credit demand typically leads the sales calendar by around 30–45 days, allowing businesses to stock up before consumers begin spending more heavily during the festive period.

For kirana and FMCG businesses, the need for frequent restocking can make working-capital requirements particularly sensitive to festive demand. The report's category projections show FMCG and kirana at the top of the list, with loan inquiries expected to grow 42%.

The broader consumption outlook is also supporting the trend. India's online festive gross merchandise value (GMV) is projected to reach ₹1.50–1.55 lakh crore in 2026, representing 25% year-on-year growth. The number of online festive shoppers is expected to increase to 180–185 million, from around 160 million in 2025.

Garments see strong credit demand

Ready-made garments rank second, with festive loan inquiries projected to grow 38%. The category is already the largest industry by loan count on FlexiLoans, with 8,827 loans, according to the report.

The report also points to faster growth in fashion consumption, with fashion expected to accelerate to 20–22% growth from 17%. Value apparel priced at up to ₹2,500 is projected to benefit from the festive consumption cycle.

Durables and electronics remain important

Durables and electronics are projected to record 31% growth in festive loan inquiries, placing the category third. However, the report expects electronics GMV growth to moderate to 15–17%, with its share slipping from 18% to 17%.

The report notes that around 80% of 2025 electronics and appliance sales used no-cost EMI, creating a cash-conversion gap for sellers until payments are settled. This can increase the need for working capital even when consumer demand is strong.

Other categories are also expected to see higher credit demand. Mobile and accessories loan inquiries are projected to rise 26%, jewellery by 24%, auto ancillaries by 22%, and pharmacy by 18%.

Overall, the projections indicate that festive borrowing is closely linked to inventory turnover, margins and the timing of consumer payments, with fast-moving categories such as FMCG, kirana and garments emerging as major drivers of MSME credit demand.