NeoGrowth continues to drive financial inclusion in an impactful manner
New Delhi: With an objective to measure and evaluate the impact created in the lives of its customers, NeoGrowth, India’s leading digital lender serving underbanked SME businesses, recently released the Social Impact Report of 2019. Committed to bring about a positive social impact and true financial inclusion through lending at the convergence of retail and digital payments, NeoGrowth is among the very few fintech NBFCs to have objectively measured and presented the direct and indirect social impact that they have created.
A random sample of 159 customers from NeoGrowth’s base of over 10,000 live customers from cities including Mumbai, Delhi NCR, Hyderabad, Chennai, Bengaluru, Lucknow, and Chandigarh were selected for the research and on-field interviews.
The report revealed some interesting insights into the instrumental role played by NeoGrowth in addressing some of the major issues concerning the society. For instance, according to the report, over 35 per cent of the total merchants surveyed were first-time borrowers who had not pursued any other financing option prior to availing loan from NeoGrowth. Moreover, a remarkable count of 80 per cent of the merchants surveyed were revealed to be first-generation entrepreneurs, suggesting how NeoGrowth has been serving even those businesses that are considered ‘risky’ propositions otherwise.
Additionally, NeoGrowth rendered loans to 2,274 merchants with a credit bureau score less than 650. The report further revealed how about 48 per cent of the merchants surveyed witnessed an increase in their credit bureau scores post availing loans from the company. This indicates how the brand’s efforts towards facilitating access to credit on convenient repayment terms has enabled it to empower small business merchants across the country with a strengthened credit history for tapping into future possibilities.
Further, these lending activities have also indirectly resulted in the creation of over 367 new jobs among the interviewed businesses alone. The fact that an average of more than 2-3 new jobs were created per surveyed customer implies the contribution of NeoGrowth in indirect job creation.
NeoGrowth has also been spearheading the vision of true gender equality in the digital lending segment. In fact, 12 per cent of the total disbursements by NeoGrowth for the year 2017-18 were towards businesses that were run by women either as sole proprietors, partners or directors.
These figures indicate how NeoGrowth has been actively leading the charge in bringing about women empowerment and promoting entrepreneurship. Further, NeoGrowth continues to lend in Tier-II cities with 17 per cent of the total disbursements during FY2018-19 originating from these cities. All these figures indicate how NeoGrowth has been actively involved in driving financial inclusion in India.
Sharing the objectives behind this study, Piyush Khaitan, Founder and Managing Director, NeoGrowth remarked, “NeoGrowth was established with the objective of creating a positive social impact through its business activities as one of its utmost priorities. And it is really heartening to see how we have come a long way in extending support to boost the financial lives of merchants belonging to the erstwhile underserved MSME segment. Through the annual Social Impact Report, we continue to analyze the impact that NeoGrowth creates in the lives of its customers, helping them access funds for scripting their growth and success. While commissioning this report has been an exhaustive process, we are committed to NeoGrowth’s objectives of bringing about financial inclusion and asserting a greater social impact, and we believe we will continue focusing on the same going forward.”
Since its inception, NeoGrowth has been at the forefront of the country’s ongoing fintech revolution. Pioneering the evolution of digital lending in India, the company has continued to strengthen its foothold in the MSME segment by facilitating easy, fast, and hassle-free access to credit through its robust risk-scoring mechanism. Having disbursed 25,000+ loans amounting to more than Rs 4,300 crores, NeoGrowth has financially empowered small merchants to grow and sustain their businesses.
But the realm of the impact created by the brand is not limited to extending financial support to these businesses, and this report stands as a true reflection of the indirect positive impact created on the society through its lending activities. NeoGrowth aims to continue delivering positive financial as well as social value to all its customers, while making a key contribution to bringing about true financial inclusion in India.
