The Rural Rush

NBFCs see the next round of growth coming from rural markets as consumers latch on to financing schemes to buy consumer durables.

- Ajita Shashidhar

Satyen Suryavanshi, owner of consumer durables store Sri Swami Samarth Electronics in Ghoti village, near Nashik, is a happy man. Despite demonetisation and the roll-out of the goods and services tax (GST) which impacted consumption across the country, Suryavanshi claims a 20 per cent growth in sales over the past six-seven months. From refrigerators and flat screen televisions to air-conditioners, microwaves and fans, Suryavanshi sells all kinds of consumer durables. His store caters to 10-15 adjoining villages each with a population of 500-1000. While good monsoons have a role to play, the reason for Suryavanshi's good sales this year is quite different. “Consumer finance companies such as Bajaj Finance have started offering zero per cent finance in our village resulting in higher sales,” he says.

Suryavanshi's farmer friend, Haribhau Gaikwad, 30, had taken a loan last year from a money lender to buy a ceiling fan and an LED TV at 8 per cent interest. This time round, Gaikwad opted for a zero per cent interest loan from Suryavanshi's store through Bajaj Finance for a refrigerator. While