Micro Lending Market Size, Share & Analysis Report, 2023-2032
The global micro lending market size was exhibited at USD 186.79 billion in 2022 and is projected to hit around USD 379.44 billion by 2032, growing at a CAGR of 9.26% during the forecast period 2023 to 2032.
Key Pointers:
Micro Lending Market Report Scope
|
Report Coverage |
Details |
|
Market Size in 2023 |
USD 188.79 Billion |
|
Market Size by 2032 |
USD 379.44 Billion |
|
Growth Rate From 2023 to 2032 |
CAGR of 9.26% |
|
Base Year |
2022 |
|
Forecast Period |
2023 to 2032 |
|
Segments Covered |
Provider, End users |
|
Market Analysis (Terms Used) |
Value (US$ Million/Billion) or (Volume/Units) |
|
Regional Scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
|
Key Companies Profiled |
Accion International, Bajaj Finserv Ltd., Bandhan Bank Ltd., Bluevine Inc., Equitas Small Finance Bank Ltd., ESAF Small Finance Bank, Fincare Small Finance Bank Ltd., Fusion Micro Finance Ltd., HDB Financial Services Ltd., ICICI Bank Ltd., Kiva Microfunds, Larsen and Toubro Ltd., Lendio Inc., Lendr.Online LLC, Oakam Ltd., On Deck Capital Inc., Panamax Inc., Small Industries Development Bank of India, Ujjivan Small Finance Bank Ltd. |
Micro lending is a small loan provided by lenders to businesses and individuals for enabling these companies to manage their expenses. The growth of the industry can be attributed to the growing adoption of microfinancing. For instance, according to the 2019 report of Microfinance Barometer, almost 140 million borrowers are micro-financed by microfinance institutions worldwide with an estimation of total loan portfolio of USD 124 billion.
The lucrative benefits of micro lending to both borrowers and investors are anticipated to drive the growth of the market over the forecast period. The benefits to the micro lending borrowers include little to no collateral for the loan along with secured micro financing. In addition, borrowers which do not qualify for traditional loans are also benefitted with micro lending as it offers quick & secure financing options to all such borrowers. Moreover, the micro lending investors are also benefited as they gain the ability for passive investment through investing via digital platforms and collect high interest compared to other fixed-income securities.
Loans within USD 50,000 can be considered microloans. Thus, the companies requiring such small loans demand for micro lending platforms. The increasing number of small businesses across the globe is one of the major factors creating demand for micro lending services. For instance, in 2022, according to the U.S. Small Business Administration (SBA), nearly 33.2 million small businesses are present in the U.S., which consists of 99.9% of U.S. businesses. Moreover, the individuals requiring micro-loans demand peer-to-peer financing which is also anticipated to drive the growth of the industry over the forecast period.
Moreover, the increasing investments by venture capital firms into the micro lending providers are also expected to drive the growth of the micro lending market over the forecast period. For instance, in November 2019, BlueVine Inc., a financing solutions provider to SMEs, announced that it had raised USD 102.5 million through a Series F round of equity financing. The round was led by ION Crossover Partners with all other existing investors, including Menlo Ventures, Lightspeed Venture Partners, SVB Capital, 83North, and Nationwide. The funds were used to create an end-to-end banking platform that included a business checking account that was easily connected with Bluevine's technology-enabled range of online financing products.
Furthermore, though the micro lending market is on the surge, some of the challenges might restrain the growth of the market. The challenges in micro lending, such as the short time for repayment provided by microlenders and high interest on small amounts, are expected to hinder the market's growth over the forecast period. Moreover, factors such as the inability of micro lending investors to recover losses owing to the defaulter borrowers also restrain the growth. Nevertheless, the adoption of advanced technology such as artificial intelligence having the capability of identifying the creditworthiness of customers is anticipated to reduce the rate of defaulter borrowers in the near future.
Asia Pacific accounted for over 27.0% of the global revenue share. The regional growth is attributed to the growing number of start-ups across the region. For instance, according to Startup India Hub, India ranks 3rd as the largest startup ecosystem worldwide which is estimated to witness a consistent Year-on-Year annual growth of 12% to 15%. The total number of startups across India stood at around 65,861 in March 2022. Such a growing number of startups create demand for micro lending, thereby fueling the regional growth. Moreover, several government initiatives and policies implemented in the countries such as Japan and Australia to provide ease in getting small loans to SMEs and entrepreneurs are driving regional growth.
Latin America is expected to expand at a significant CAGR in the forecast period. The growth can be attributed to the increasing number of micro lending platform providers across the region. Furthermore, in 2020, through The United Nations Environment Programme (UNEP) farmers in Latin America have leveraged microfinancing to fight climate change. In addition, the market players in Latin America are also expanding their micro lending solutions to help customers during the pandemic. For instance, in March 2022, Mibanco utilized FICO Platform’s Decisions Capability to enhance its lending capacity and adjust according to changing market conditions during the pandemic.
Some of the prominent players in the Micro Lending Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Micro Lending market.
By Provider
By End users
By Region
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Micro Lending Market
5.1. COVID-19 Landscape: Micro Lending Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Micro Lending Market, By Provider
8.1. Micro Lending Market, by Provider, 2023-2032
8.1.1. Banks
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Micro Finance Institutes (MFIs)
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. NBFCs (Non-banking Financial Institutions)
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Others
8.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Micro Lending Market, By End users
9.1. Micro Lending Market, by End users, 2023-2032
9.1.1. Solo Entrepreneurs & Individuals
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Micro Enterprises
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Small Enterprises
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Micro Lending Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Provider (2020-2032)
10.1.2. Market Revenue and Forecast, by End users (2020-2032)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Provider (2020-2032)
10.1.3.2. Market Revenue and Forecast, by End users (2020-2032)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Provider (2020-2032)
10.1.4.2. Market Revenue and Forecast, by End users (2020-2032)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Provider (2020-2032)
10.2.2. Market Revenue and Forecast, by End users (2020-2032)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Provider (2020-2032)
10.2.3.2. Market Revenue and Forecast, by End users (2020-2032)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Provider (2020-2032)
10.2.4.2. Market Revenue and Forecast, by End users (2020-2032)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Provider (2020-2032)
10.2.5.2. Market Revenue and Forecast, by End users (2020-2032)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Provider (2020-2032)
10.2.6.2. Market Revenue and Forecast, by End users (2020-2032)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Provider (2020-2032)
10.3.2. Market Revenue and Forecast, by End users (2020-2032)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Provider (2020-2032)
10.3.3.2. Market Revenue and Forecast, by End users (2020-2032)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Provider (2020-2032)
10.3.4.2. Market Revenue and Forecast, by End users (2020-2032)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Provider (2020-2032)
10.3.5.2. Market Revenue and Forecast, by End users (2020-2032)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Provider (2020-2032)
10.3.6.2. Market Revenue and Forecast, by End users (2020-2032)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Provider (2020-2032)
10.4.2. Market Revenue and Forecast, by End users (2020-2032)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Provider (2020-2032)
10.4.3.2. Market Revenue and Forecast, by End users (2020-2032)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Provider (2020-2032)
10.4.4.2. Market Revenue and Forecast, by End users (2020-2032)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Provider (2020-2032)
10.4.5.2. Market Revenue and Forecast, by End users (2020-2032)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Provider (2020-2032)
10.4.6.2. Market Revenue and Forecast, by End users (2020-2032)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Provider (2020-2032)
10.5.2. Market Revenue and Forecast, by End users (2020-2032)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Provider (2020-2032)
10.5.3.2. Market Revenue and Forecast, by End users (2020-2032)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Provider (2020-2032)
10.5.4.2. Market Revenue and Forecast, by End users (2020-2032)
Chapter 11. Company Profiles
11.1. Accion International
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Bajaj Finserv Ltd.
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Bandhan Bank Ltd.
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Bluevine Inc.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. Recent Initiatives
11.5. Equitas Small Finance Bank Ltd.
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. ESAF Small Finance Bank
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Fincare Small Finance Bank Ltd.
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Fusion Micro Finance Ltd.
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. HDB Financial Services Ltd.
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. ICICI Bank Ltd.
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers