Micro Lending Market 2023 Insights with Key Innovations Analysis by 2028

IMARC Group, a leading market research company, has recently releases report titled “Micro Lending Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028.” The study provides a detailed analysis of the industry, including the global micro lending market size, trends, and growth forecasts. The report also includes competitor and regional analysis and highlights the latest advancements in the market.

Micro-lending, also referred to as microcredit, involves the practice of extending modest loans to individuals, typically those with limited access to conventional banking services. The primary objective is to bolster their entrepreneurial pursuits and mitigate poverty. Micro-lending is geared towards delivering financial solutions to individuals with lower incomes, frequently in developing nations, who encounter challenges in accessing collateral, credit history, or formal employment. These loans are generally of modest denominations and are utilized to establish or expand small enterprises, finance ventures generating income, or fulfill essential necessities. Micro-lending entities, such as microfinance banks or non-governmental organizations (NGOs), are instrumental in providing these loans. They appraise loan applications based on the borrower’s character, business proposal, and repayment capacity, diverging from traditional credit assessments. Furthermore, micro-lenders often furnish recipients with financial literacy education, business advancement services, and continuous support. This comprehensive approach aims to augment borrowers’ aptitude for financial management and enhance their prospects of achievement.

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.

The micro-lending market is undergoing transformation due to significant trends and drivers that are shaping its expansion and evolution. Foremost, there is a rising acknowledgment of the pivotal role played by micro-lending in alleviating poverty and fostering inclusive economic development. Governments, international organizations, and impact investors are progressively backing micro-lending initiatives, extending funding to broaden microcredit access within underserved communities. Furthermore, technological advancements and the emergence of digital platforms have facilitated the broadening of micro-lending services. Mobile banking, digital payment systems, and online loan application procedures have simplified the process for micro-lenders to engage a larger customer base, offering efficient and convenient financial solutions. This digital shift is propelling market growth and enhancing financial inclusion, particularly in regions with limited banking infrastructure. In parallel, an escalating emphasis is placed on social and environmental impact investing, with investors actively seeking opportunities to effect positive change while generating financial returns. Micro-lending aligns harmoniously with the objectives of impact investing, targeting marginalized populations and nurturing sustainable entrepreneurship. The mounting demand for socially responsible investments is consequently driving the expansion of the micro-lending market.

The report has been segmented the market into following categories:

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

The report provides a comprehensive analysis of the industry key players listed below:

American Express Company, BlueVine Inc., Funding Circle, Lendio Inc., Lendr, Manappuram Finance Limited, NerdWallet, On Deck Capital (Enova International) and StreetShares Inc.

Key highlights of the Report:

• Market Performance (2018–2023)
• Market Outlook (2023–2028)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

TOC for the Report:

• Preface
• Scope and Methodology
• Executive Summary
• Introduction
• SWOT Analysis
• Value Chain Analysis
• Price Analysis
• Competitive Landscape