40-50% Rise In Loan Applications,15% More Jobs; This Festive Season Seen To Be Economy Powerhouse

The festive season between September to December 2023 is likely to be an economy powerhouse with the banking sector expected to witness a robust spike in loan applications and disbursals. Furthermore, 15% more jobs are estimated! Not just that sectors like jewellery, fashion, and footwear are factored to record over 20% rise in their growth, while auto and consumer durables are on the brink of extraordinary sales.

Ganesh Chaturthi festival has kicked started, while Navratri, Diwali, Christmas and New Year are all likely to see strong demand for goods and services. Winter wedding season will also have its fair share of driving the growth.

The report highlighted that as India prepares to embrace the festive season, the nation's economic landscape is illuminated with unprecedented optimism, according to a report by FlexiLoans.com. The report reveals an impressive 11% surge in demand, far surpassing the modest 7% growth witnessed during the initial quarter of this year.

It added this festive season promises to be an economic powerhouse!

FlexiLoans report expects to see a 40-50% spike in loan applications, 2X growth in disbursals, and over Rs 1,500 crore of disbursements with over 10 lakh applications expected during the festive season this year.

The top sectors of demand spike for loans are expected to be Retail Garments, FMCG/Kirana, Industrial Goods, Consumer Durables, Mobile, Pharmacy, and Auto Ancillaries, each showcasing remarkable growth.

Manish Lunia, Co-Founder of FlexiLoans, enthusiastically commented, "The festive season is a colossal opportunity for businesses and consumers alike. At FlexiLoans, we have witnessed an unwavering trend of robust loan demand during this period, emblematic of the thriving economic sentiment."

Notably, Flexiloans data revealed that the rapid urbanization, burgeoning incomes, and thriving economic activities in Tier 2 and Tier 3 cities have catalyzed an unprecedented surge in loan applications from these regions. A staggering 50% of loan demand originates from Tier 3 cities and beyond, with more than 75% flowing in from outside Tier 1 towns.

Further, it expects the festive season 2023 to generate a whopping 15% surge in job opportunities, and a 50%+ sales spike in segments like consumer durables and cars. Additionally, there is expected to be a 20%+ spike in specific sectors like jewellery, fashion, and footwear. The consumer durables and automobiles sectors are on the brink of an extraordinary sales upswing, expected to soar by over 50%. Also, segments like jewellery, fashion, and footwear anticipate an impressive sales surge of more than 20%.

In the case of the digital realm, Flexiloans report said the online retail sector is primed for explosive growth, with an expected demand of ₹90,000 Crores this festive season, marking an astounding 18-20% growth compared to the previous year. This meteoric rise in online shopping has also ignited a 40-50% spike in borrowing among consumers, driven by the irresistible Buy Now, Pay Later (BNPL) offers.