The Future of Finance: Micro Lending Market’s Growth and Impact
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.
What is Micro Lending?
Micro-lending, also known as microcredit, involves the practice of offering small loans to individuals, especially those with limited access to mainstream banking services. The primary goal is to support their entrepreneurial endeavors and alleviate poverty. Micro-lending is designed to provide financial solutions to individuals with lower incomes, often in developing nations, who face difficulties in accessing collateral, credit history, or formal employment. These loans are typically of modest amounts and are used to establish or expand small businesses, fund income-generating ventures, or meet essential needs.
Entities engaged in micro-lending, such as microfinance banks or non-governmental organizations (NGOs), play a crucial role in disbursing these loans. They assess loan applications based on the borrower's character, business proposal, and repayment capacity, deviating from traditional credit assessments. Additionally, micro-lenders often provide recipients with financial literacy education, business development services, and ongoing support. This comprehensive approach aims to enhance borrowers' financial management skills and improve their chances of success.
How Big Is the Micro Lending Market?
The global micro lendingmarket 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.
Global Industry Trends and Drivers:
The micro-lending market is undergoing a transformation driven by significant trends and factors that are influencing its growth and development. Primarily, there is a growing recognition of the crucial role played by micro-lending in reducing poverty and promoting inclusive economic development. Governments, international organizations, and impact investors are increasingly supporting micro-lending initiatives, providing funding to expand access to microcredit in underserved communities.
Moreover, technological advancements and the rise of digital platforms have facilitated the expansion of micro-lending services. Mobile banking, digital payment systems, and online loan application procedures have streamlined the process for micro-lenders to reach a larger customer base, offering efficient and convenient financial solutions. This digital shift is driving market growth and improving financial inclusion, especially in regions with limited banking infrastructure.
Simultaneously, there is a growing emphasis on social and environmental impact investing, with investors actively seeking opportunities to create positive change while generating financial returns. Micro-lending aligns well with the goals of impact investing, targeting marginalized populations and nurturing sustainable entrepreneurship. The increasing demand for socially responsible investments is thus fueling the expansion of the micro-lending market.
What Is Included In Market Segmentation?
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