All credit to festive season, digital lenders eye more business
lending industry is betting big on a quick rebound in business, as consumers prepare to loosen their purse strings and merchants stock up to meet the additional demand.
While the December quarter historically sees consumer-facing businesses making the most of it, this year the fintech lending industry is on a much stronger footing to meet the heightened credit demand. ET wrote on August 4 how fintech lenders reported stronger and profitable balance sheets for the last fiscal year.
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Offering CollegeCourseWebsiteNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisit“Over the last so many years, incidents around IL&FS, demonetisation, introduction of GST, Covid-19 and finally the digital lending guidelines had disrupted the industry, but this year we have not seen any such disruption,” said Prithvi Chandrasekhar, chief executive at InCred Consumer Finance.
InCred typically sees demand for credit go up two times during the festive season, Chandrasekhar said.
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For digital lending platforms, a jump in demand does not automatically convert into a corresponding increase in disbursals, but overall disbursals go up on an average of 15-20% during the festive period.
Mumbai-based platform NeoGrowth is hoping to take its quarterly credit disbursal to Rs 750 crore during the current festive season.
“When we lend to businesses, demand builds over a two- or three-month period ahead of the festive season, because businesses need to order materials and
