Micro Lending Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 213.58 Billion |
| Market Size (2029) | USD 353.14 Billion |
| CAGR (2024 - 2029) | 10.58 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Micro Lending Market Analysis
The Micro Lending Market size is estimated at USD 213.58 billion in 2024, and is expected to reach USD 353.14 billion by 2029, growing at a CAGR of 10.58% during the forecast period (2024-2029).
Microlending is growing due to the rapid adoption of digital technology. The industry is expected to benefit significantly from better connectivity in developing countries and technical progress in several countries in the Middle East & Africa. The extensive integration of sophisticated technology across developing nations, such as mobile banking, ATMs, POS systems, and others, is paving the way for future market opportunities in the industry. For example, the Government of India uses the Adhar payment bridge system to provide microloans and various other services to citizens nationwide.
The expansion of the micro-lending industry is also positively impacted by the increased ability of entrepreneurs to start new businesses with less financial support. However, the industry is expected to benefit financially from introducing advanced technologies in microfinance.
The market's growth is expected to be driven by technological innovations and various technologies, such as AI, to reduce the costs of companies associated with microloan applications. The increasing digitalization and the growing use of smartphones and electronic wallets have made it easier for borrowers to repay loans. These digital trends are expected to create new growth opportunities for the market over the next few years.
Micro Lending Market Trends
The Micro lending Industry is Being Dominated by Banks
- The increasing demand for microcredit from small and medium-sized enterprises (SMEs) and other business owners encourages banks to provide microcredit services to their customers, contributing to the segment's growth. According to World Bank statistics, domestic lending for the private sector accounts for 55% of India's GDP. Asian nations like China, South Korea, and Vietnam stand ahead of India.
- More and more businesses and individuals have started applying for credit applications online over the past few years rather than dealing with cumbersome lending processes. The Federal Reserve estimates that, in total, almost half of the world's small businesses are applying for loans from banks and other types of financial institutions. Given the ease with which borrowers can request a loan and the advantages lenders have in automatic processing and quick approvals, this sector is being further developed.
- The Indian economy experienced a boom in bank credit. However, in the following years, credit growth will slow down due to weak credit growth in the industrial sector and banks' high Net Non-Performing Assets (NPAs), which had risen sharply due to economic slowdown, over-capitalization of some sectors, and various other factors putting stress on corporate balance sheets, affecting banks' ability to lend and widening the credit gap, thus adversely impacting India's growth.
Asia-Pacific (APAC) is One of the Fastest-Growing Regions in Terms of Market Growth
- India's economy is currently expanding at a rapid pace. India's rapidly growing small and medium-sized enterprises (SMEs) have led the nation's economic advancement. These 43 million SMEs represent over 40% of India's entire workforce. SMEs in India often need help with scaling up to larger premises. Despite the vast number of SMEs in India, one of the most common problems they face is a need for more working capital. SMEs, commercial banks, and non-banking financial institutions have also introduced new microlending services to support various small businesses economically.
- Micro lending has witnessed significant growth in the APAC region over the years. The region is home to many small and medium-sized enterprises (SMEs). As these businesses drive economic activity and employment in the region, a growing need for financial services tailored to their needs is growing. Microlending institutions have stepped in to fill this gap by providing small loans to SMEs, enabling them to invest in expansion, inventory, equipment, and other essentials for growth. The expanding middle class in the regional countries has created a growing demand for consumer credit, including small loans for education, healthcare, and other personal expenses. Microlenders have tapped into this market by offering flexible and accessible loan products tailored to the needs of middle-income borrowers.
Micro Lending Industry Overview
The micro lending market is moderately fragmented. The industry is seen by many leading players as a mixed market. To expand their products, they use a variety of approaches, including specific product launches that target small and medium-sized enterprises (SMEs) and entrepreneurs. The major players dominating the market are Accion International, BlueVine Inc., Fundera Inc., Funding Circle, and Kabbage Inc.
Micro Lending Market Leaders
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Accion International
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BlueVine Inc.
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Fundera Inc.
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Funding Circle
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Kabbage Inc.
*Disclaimer: Major Players sorted in no particular order
Micro Lending Market News
- November 2023: Funding Circle and Atom Bank unveiled a lending collaboration to extend GBP 150 million (USD 180.87 million) in fresh funding to small businesses. Combined with the previous lending of GBP 350 million (USD 422.03 million) facilitated through the Funding Circle platform, this new commitment boosts Atom's total lending via Funding Circle to GBP 800 million (USD 964.65 million).
- July 2023: Funding Circle, the biggest lending platform in the United Kingdom for small businesses, unveiled a fresh collaboration with Rainbow Energy. This partnership aimed to empower small businesses to utilize a Funding Circle loan to install top-tier solar panels and battery storage systems offered by Rainbow. Small businesses can reduce their ongoing energy expenses by transitioning to renewable energy while achieving societal net zero goals.
- April 2023: Wise, the renowned global technology company specializing in optimizing money transfers worldwide, joined forces with Bluevine, a leading provider of comprehensive small business banking solutions. This partnership harnesses the capabilities of the Wise Platform to enhance the convenience, simplicity, and transparency of international payments for Bluevine's customers within its all-in-one digital banking account.
Micro Lending Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Interest in Socially Responsible Investment Driving Market Growth
4.2.2 Advancement in Mobile Banking and Digital Platform Driving Market Growth
4.3 Market Restraints
4.3.1 Shutdown of Small and Medium Businesses During COVID-19 Pandemic
4.4 Market Opportunities
4.4.1 Increasing Number of Small Entrepreneurs
4.4.2 Increasing Venture Capital Firm Investments for Micro Lending
4.5 Industry Attractiveness: Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Government Initiatives in the Micro Lending Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Banks
5.1.2 Microfinance Institute (MFI)
5.1.3 Non-Banking Financial Institutions (NBFC)
5.2 By End User
5.2.1 Small Enterprises
5.2.2 Solo Entrepreneurs
5.2.3 Micro Entrepreneuers
5.3 By Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Middle East & Africa
5.3.5 South America
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Accion International
6.2.2 Bluevine Inc.
6.2.3 Fundera Inc.
6.2.4 Funding Circle
6.2.5 Kabbage Inc.
6.2.6 American Express
6.2.7 OnDeck
6.2.8 Fundbox
6.2.9 LendingClub Bank
6.2.10 Zopa Bank Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Micro Lending Industry Segmentation
Microlending is one of the most common types of microfinancing. It is a very small loan given to a person to help them start their own business or to help them expand their business. The micro lending market is segmented by service provider, end user, and geography. By type, the market is segmented into banks, microfinance institutes (MFI), and NBFC (non-banking financial institutions). By end user, the market is segmented into small enterprises, solo entrepreneurs, and micro-entrepreneurs, and by geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The report offers the market size in value terms in USD for all the abovementioned segments.
| By Type | |
| Banks | |
| Microfinance Institute (MFI) | |
| Non-Banking Financial Institutions (NBFC) |
| By End User | |
| Small Enterprises | |
| Solo Entrepreneurs | |
| Micro Entrepreneuers |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Middle East & Africa | |
| South America |
Micro Lending Market Research FAQs
How big is the Micro Lending Market?
The Micro Lending Market size is expected to reach USD 213.58 billion in 2024 and grow at a CAGR of 10.58% to reach USD 353.14 billion by 2029.
What is the current Micro Lending Market size?
In 2024, the Micro Lending Market size is expected to reach USD 213.58 billion.
Who are the key players in Micro Lending Market?
Accion International, BlueVine Inc., Fundera Inc., Funding Circle and Kabbage Inc. are the major companies operating in the Micro Lending Market.
Which is the fastest growing region in Micro Lending Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Micro Lending Market?
In 2024, the Asia Pacific accounts for the largest market share in Micro Lending Market.
What years does this Micro Lending Market cover, and what was the market size in 2023?
In 2023, the Micro Lending Market size was estimated at USD 190.98 billion. The report covers the Micro Lending Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Micro Lending Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Micro Lending Industry Report
Statistics for the 2024 Micro Lending market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Micro Lending analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
