New Delhi, Nov 7 (KNN) NBFCs have witnessed record loans in October owing to festival season-led spending and consumer exuberance, led by both consumer and MSME finance, as per a report by businessline. 

Overall disbursement for M&M Financial as per its estimates in October is to be around Rs 5,250 crore similar to last year, 

The year-to-date disbursements for October 2023, at Rs 30,700 crore, were 16 per cent higher compared with previous year. 

“The festival season presents a significant opportunity for businesses and consumers, with this year witnessing massive loan demands. MSMEs supplying in-demand segments like food, apparel, electronics, and appliances experienced a surge in orders, driven by increased consumer demand, particularly for business owners selling through modern trade platforms and large format stores,” said Mahesh Shukla, CEO & Founder of digital lending platform PayMe, reported businessline.

Capri Global Capital said it disbursed a record 10,000 car loans in October worth Rs 1,000 crore. The lender is aiming for car loan disbursements worth Rs 10,000 crore in FY24 compared with Rs 5,700 crore in FY23.

“The demand for car loans, especially for mid-segment SUVs, is on the rise, particularly in tier 2 and tier 3 cities,” said Capri Global MD Rajesh Sharma, adding that borrowers come from a broad spectrum, including entry level cars to premium car owners.

Nearly half of the credit demand during the festival season is originating from tier 3 cities, led by higher funding and working capital requirements of MSMEs and increase in consumer purchases of white goods, vehicles, personal clothing, and décor, as per reports.

Corporate or MSME lending growth is seen as being led by demand for working capital loans given that sales volumes are expected to be 1.5 times higher this year. On the other hand, consumer loan demand is being driven by personal loans, automobile loans, and equipment loans.

(KNN Bureau)