In FY20, More Than 77 Per Cent Of Borrowers Are First Generation Entrepreneurs: Survey
Money & Banking
Nearly 77.6 per cent of the borrowers in financial year 2020 were first-generation entrepreneurs, of which 14.5 per cent moved out of the informal sector to join mainstream businesses, according to a survey.
The pre-Covid-19 survey, conducted by non-banking finance company NeoGrowth Credit, also found that 51.4 per cent of the interviewees were first time borrowers.
“First-time borrowers now have more and more confidence, are seeking loans and building credit history. We also found that people who took loans have used it to grow the business, and as the businesses grew, they hired more staff,” Piyush Khaitan, Founder and Managing Director of NeoGrowth Credit told BusinessLine.
“Even small loans create jobs, which is important. Further, even micro businesses are adopting digital payment modes such as credit cards, UPI and QR code-based payment modes,” he added.
Nearly 84.1 per cent of the customers, who took part in the survey, registered an increase in revenue post availing a loan. The loans were mostly availed for working capital.
The company lends 27 different industry verticals, with grocery, chemists, apparel, café and restaurants, spa and saloons and petrol pumps topping the list. The average ticket-size of the loans ranged between ₹2 lakh and ₹50 lakh.
NeoGrowth conducted the study across a base of more than 17,000 customers for the fiscal ended March 31, 2020. The sample was collected across Mumbai, Pune, Delhi, Lucknow, Ahmedabad, Bengaluru and Hyderabad.
NBFC are becoming important in India as banks are generally hesitant to give loans to entrepreneurs who lack formal education.
The company, which had earlier raised funds from Omidyar Network, Aspada Investment Company, Khosla Impact, Accion Frontier Inclusion Fund (managed by Quona Capital), IIFL Seed Ventures Fund and Leapfrog Investments, has ₹1,340 crore of assets under management as of March 31, 2020.
Published on
June 28, 2020
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Nearly 77.6 per cent of the borrowers in financial year 2020 were first-generation entrepreneurs, of which 14.5 per cent moved out of the informal sector to join mainstream businesses, according to a survey.
The pre-Covid-19 survey, conducted by non-banking finance company NeoGrowth Credit, also found that 51.4 per cent of the interviewees were first time borrowers.
“First-time borrowers now have more and more confidence, are seeking loans and building credit history. We also found that people who took loans have used it to grow the business, and as the businesses grew, they hired more staff,” Piyush Khaitan, Founder and Managing Director of NeoGrowth Credit told BusinessLine.
“Even small loans create jobs, which is important. Further, even micro businesses are adopting digital payment modes such as credit cards, UPI and QR code-based payment modes,” he added.
Nearly 84.1 per cent of the customers, who took part in the survey, registered an increase in revenue post availing a loan. The loans were mostly availed for working capital.
The company lends 27 different industry verticals, with grocery, chemists, apparel, café and restaurants, spa and saloons and petrol pumps topping the list. The average ticket-size of the loans ranged between ₹2 lakh and ₹50 lakh.
NeoGrowth conducted the study across a base of more than 17,000 customers for the fiscal ended March 31, 2020. The sample was collected across Mumbai, Pune, Delhi, Lucknow, Ahmedabad, Bengaluru and Hyderabad.
NBFC are becoming important in India as banks are generally hesitant to give loans to entrepreneurs who lack formal education.
The company, which had earlier raised funds from Omidyar Network, Aspada Investment Company, Khosla Impact, Accion Frontier Inclusion Fund (managed by Quona Capital), IIFL Seed Ventures Fund and Leapfrog Investments, has ₹1,340 crore of assets under management as of March 31, 2020.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
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