NeoGrowth conducts an extensive Social Impact Study report on the performance of its MSME customers

  • 139 merchants across seven cities interviewed, different business segments and ownership models included.
  • So far NeoGrowth has disbursed over Rs.35 Billion in loans under its social impact lending model

NeoGrowth recently commissioned ASCo, India's leading transaction advisory firm, to audit the social impact that NeoGrowth loans have had on the lives of retailers in terms of business growth, women empowerment, job creation and fostering entrepreneurship. So far NeoGrowth has disbursed over Rs. 35 Billion in loans under its social impact lending model. NeoGrowth has already generated a lot of positive response by facilitating credit assistance to a massive under-served segment of Indian entrepreneurs across the country.

The independent report was prepared after interviewing 139 customers of NeoGrowth across seven cities including Hyderabad, NCR Delhi, Mumbai, Kolkata, Lucknow, Bangalore and Vijayawada. Only borrowers with lending activity between April 2017 and March 2018 were selected, and the sample size was carefully developed to include different industries, constitution of enterprises, varying loan amounts and gender

Commenting on the report, Piyush Khaitan (PK), MD & Co-founder, NeoGrowth said, "NeoGrowth has been conducting these studies every year to understand the social impact generated on-ground from the business activities of its customers. Since traditional underwriting methods in India exclude more than 50% of creditworthy SMEs due to insufficient credit history or lack of collaterals, a substantial amount of the country's potential business and economic output remains untapped. This annual social impact report prepared by an independent third party has further underlined NeoGrowth's commitment in boosting entrepreneurship and job creation, thereby enforcing our mission of creating a positive social impact."

NeoGrowth's operational innovations have seen them partner with more than 13,000 business merchants across 21 cities to grow and diversify their enterprises.

Click here to read the Complete Social Impact Report

NeoGrowth’s Founder & MD, Piyush Khaitan (PK), shares his views on the news around current liquidity crunch for NBFCs.

Liquidity crisis: Crucial to give well-run NBFCs their due; it isn’t right to paint all of them with the same brush

The growing uneasiness about liquidity fears is affecting the Non-Banking Financial Companies (NBFCs) space, bringing back painful memories. As NBFCs grapple with commercial paper maturity worth over Rs 1 lakh crore in November with big chunks slated to start from Monday onwards, the current crisis-like scenario is being compared to parallels in past cycles that occurred in 2009 and 2013.

The Indian government and Reserve Bank of India (RBI) are taking swift measures to shore up liquidity and ease crunch fears. But, in this confusion, all NBFCs irrespective of their balance sheet strength and businesses are being painted with the same brush. What started due to default on debt obligations by a single entity is now being given the unfair perception of an ‘industry-wide’ problem, pushing up markets-based borrowing costs and affecting liquidity strength for everyone in the system. It is important for stakeholders to separate the wheat from the chaff.

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