Micro Lending Market

Market Overview:

The global micro lending market size reached US$ 189.2 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 353.9 Billion by 2028, exhibiting a growth rate (CAGR) of 10.75% during 2023-2028.

Micro lending is a form of financing that provides small sums to self-employed entrepreneurs in small businesses or startups to help them efficiently manage their business. A borrower usually uses microloans if they have poor credit scores, do not have access to local financial institutions, or require a loan smaller than banks offer. Banks, microfinance Institutes (MFIs), and non-banking financial institutions (NBFCs) are some common providers of microloans. A finance fee or interest rate is charged for the sanction of credit or the extension of existing credit. Micro lending assists individuals’ economic growth, promotes financial liberation, and supports entrepreneurs.

Micro Lending Market Trends:

High economic growth for micro, small, and medium-sized enterprises, especially in developing nations, is one of the key factors creating a positive outlook for the market. Micro lending creates significant opportunities for small enterprises and self-employed entrepreneurs to expand their business as it operates on low risk. In line with this, the growing potential of entrepreneurs to bring in more business and start from zero level with less capital support is favoring the market growth. Apart from this, significant growth in the banking, financial services, and insurance (BFSI) industry and increasing digitization are providing an impetus to the market growth. Additionally, the consequent enhancement in the security and functioning of the institutions, along with increasing connectivity that facilitates easy and hassle-free repayment of loans and avoids cash-related risks, are propelling the market growth. Moreover, the rising penetration of smartphones to access financial services through mobile credit and e-wallets are positively influencing the market growth. Other factors, including the widespread adoption of micro-lending for improving lifestyle and the implementation of various government initiatives encouraging micro lending as part of economic development, are supporting the market growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global micro lending market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on provider and end user.

Breakup by Provider:

• Banks
• Micro Finance Institute (MFI)
• NBFC (Non-Banking Financial Institutions)
• Others
   

Breakup by End User:

• Small Enterprises
• Micro Enterprises
• Solo Entrepreneurs and Self-Employed
   

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being American Express Company, BlueVine Inc., Funding Circle, Lendio Inc., Lendr, Manappuram Finance Limited, NerdWallet, On Deck Capital (Enova International) and StreetShares Inc. (MeridianLink).

Report Coverage: