Micro Lending Market by Source and Geography - Forecast and Analysis 2022-2026

Published: Jul 2022 Pages: 125 SKU: IRTNTR73839

The micro lending market share is expected to increase to USD 209.13 million from 2021 to 2026, at a CAGR of 16.89%.

This micro lending market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers micro lending market segmentation by source (Banks, NBFCs, and MFIs) and geography (APAC, Europe, North America, Middle East and Africa, and South America). The micro lending market report also offers information on several market vendors, including 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, and Ujjivan Small Finance Bank Ltd. among others.

What will the Micro Lending Market Size be During the Forecast Period?

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Micro Lending Market: Key Drivers, Trends, and Challenges

The adoption of advanced technology in microfinancing is notably driving the micro lending market growth, although factors such as lack of awareness about financial services may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the micro lending industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Micro Lending Market Driver

The adoption of advanced technology in micro financing is one of the key drivers propelling the micro lending market growth. Some prominent players are bringing new technologies to increase their market share and provide customers with a better experience, such as flexibility to repay loans through their mobile phones and avoiding the risks of cash-in-transit. On the other hand, the increasing availability of mobile phones for accessing financial services via mobile credit and e-wallets is boosting the micro lending market growth, particularly in places where banks are underrepresented. Moreover, loans may be quickly repaid using digital technology, minimizing cash-related hazards, which is causing a rise in digitization across the global micro lending market and is expected to fuel the market growth during the forecast period.

Key Micro Lending Market Trend

The rise in the adoption of micro lending in developing nations is one of the key micro lending market trends fueling the market growth. Fundamentally, emerging countries are now able to reduce poverty and improve their standard of living due to the increase in the number of microlenders. Given this, various farmers in the African countries are adopting micro lending for buying crops, which drives the global micro lending market growth. In addition, people in rural areas are availing of loans from microlenders for setting up their own businesses and raising their standard of living. Such benefits will fuel the market growth during the forecast period.

Key Micro Lending Market Challenge

Lack of awareness about financial services is one of the key factors challenging the micro lending market growth. MFIs are majorly beneficial for low-income groups. However, they face major challenges due to the lack of awareness among the population about financial services. Most MFI customers do not have sufficient knowledge of how micro lending works and many of them do not even understand the loan process. On the other hand, many MFI representatives at the field service level do not know the rules and regulations, such as pricing regulations. As a result, lack of awareness is becoming a key challenge in micro lending operations, which will negatively impact the global micro lending market growth during the forecast period.

This micro lending market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global micro lending market as a part of the global specialized consumer services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the micro lending market during the forecast period.

Who are the Major Micro Lending Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

  • 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.

 

This statistical study of the micro lending market encompasses successful business strategies deployed by the key vendors. The micro lending market is fragmented and the vendors are deploying growth strategies such as brand and reliability to compete in the market.

Product Insights and News

  • Accion International - It is a privately held company headquartered in the US. It is a global company, with limited information regarding its financials and limited information regarding its employee strength available. Its revenue from the global micro-lending market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The micro lending market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Micro Lending Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the micro lending market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Micro Lending Market?

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47% of the market's growth will originate from APAC during the forecast period. China, India, and South Korea are the key markets for the micro lending market in APAC. Market growth in this region will be slower than the growth of the market in South America.

The rising adoption of online platforms for lending will facilitate the micro lending market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The increased prevalence of COVID-19 adversely impacted the growth of the market in the region in 2020. However, the rising utilization of digital platforms for financial transactions and large-scale COVID-19 vaccination drives by various countries in the region at the beginning of 2021 improved the regional business scenario, which led to the increasing demand for micro lending. Such increasing demand will drive the market growth during the forecast period.

What are the Revenue-generating Source Segments in the Micro Lending Market?

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The micro lending market share growth by the banks segment will be significant during the forecast period. Micro lending banks offer significant benefits to the low-income groups, which is expected to increase the demand for micro lending during the forecast period. Moreover, the need to provide easy credit and offer small loans to customers without any collateral further increases the preference for micro lending banks among people, which, in turn, fuels the growth of the market in focus, and the same trend is expected in the coming years.

This report provides an accurate prediction of the contribution of all the segments to the growth of the micro lending market size and actionable market insights on post COVID-19 impact on each segment.

You may be interested in our similar Report: 

Microfinance Market -The Market share is s expected to increase by USD 122.46 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 11.61%.

Micro Lending Market Scope

Report Coverage

Details

Page number

120

Base year

2021

Forecast period

2022-2026

Growth momentum & CAGR

Decelerate at a CAGR of 16.89%

Market growth 2022-2026

$ 209.13 million

Market structure

Fragmented

YoY growth (%)

18.52

Regional analysis

APAC, Europe, North America, Middle East and Africa, and South America

Performing market contribution

APAC at 47%

Key consumer countries

US, China, India, South Korea, and Germany

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

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, and Ujjivan Small Finance Bank Ltd.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period

Customization purview

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What are the Key Data Covered in this Micro Lending Market Report?

  • CAGR of the market during the forecast period 2022-2026
  • Detailed information on factors that will drive micro lending market growth during the next five years
  • Precise estimation of the micro lending market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the micro lending industry across APAC, Europe, North America, Middle East and Africa, and South America
  • A thorough analysis of the market's competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of micro lending market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch

1 Executive Summary

  • 1.1 Market overview
    • Exhibit 01: Executive Summary – Chart on Market Overview
    • Exhibit 02: Executive Summary – Data Table on Market Overview
    • Exhibit 03: Executive Summary – Chart on Global Market Characteristics
    • Exhibit 04: Executive Summary – Chart on Market by Geography
    • Exhibit 05: Executive Summary – Chart on Market Segmentation by Source
    • Exhibit 06: Executive Summary – Chart on Incremental Growth
    • Exhibit 07: Executive Summary – Data Table on Incremental Growth
    • Exhibit 08: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 09: Parent market
    • Exhibit 10: Market Characteristics

3 Market Sizing

  • 3.1 Market definition
    • Exhibit 11: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis
    • Exhibit 12: Market segments
  • 3.3 Market size 2021
    • 3.4 Market outlook: Forecast for 2021-2026
      • Exhibit 13: Chart on Global - Market size and forecast 2021-2026 ($ million)
      • Exhibit 14: Data Table on Global - Market size and forecast 2021-2026 ($ million)
      • Exhibit 15: Chart on Global Market: Year-over-year growth 2021-2026 (%)
      • Exhibit 16: Data Table on Global Market: Year-over-year growth 2021-2026 (%)

    4 Five Forces Analysis

    • 4.1 Five forces summary
      • Exhibit 17: Five forces analysis - Comparison between 2021 and 2026
    • 4.2 Bargaining power of buyers
      • Exhibit 18: Chart on Bargaining power of buyers – Impact of key factors 2021 and 2026
    • 4.3 Bargaining power of suppliers
      • Exhibit 19: Bargaining power of suppliers – Impact of key factors in 2021 and 2026
    • 4.4 Threat of new entrants
      • Exhibit 20: Threat of new entrants – Impact of key factors in 2021 and 2026
    • 4.5 Threat of substitutes
      • Exhibit 21: Threat of substitutes – Impact of key factors in 2021 and 2026
    • 4.6 Threat of rivalry
      • Exhibit 22: Threat of rivalry – Impact of key factors in 2021 and 2026
    • 4.7 Market condition
      • Exhibit 23: Chart on Market condition - Five forces 2021 and 2026

    5 Market Segmentation by Source

    • 5.1 Market segments
      • Exhibit 24: Chart on Source - Market share 2021-2026 (%)
      • Exhibit 25: Data Table on Source - Market share 2021-2026 (%)
    • 5.2 Comparison by Source
      • Exhibit 26: Chart on Comparison by Source
      • Exhibit 27: Data Table on Comparison by Source
    • 5.3 Banks - Market size and forecast 2021-2026
      • Exhibit 28: Chart on Banks - Market size and forecast 2021-2026 ($ million)
      • Exhibit 29: Data Table on Banks - Market size and forecast 2021-2026 ($ million)
      • Exhibit 30: Chart on Banks - Year-over-year growth 2021-2026 (%)
      • Exhibit 31: Data Table on Banks - Year-over-year growth 2021-2026 (%)
    • 5.4 NBFCs - Market size and forecast 2021-2026
      • Exhibit 32: Chart on NBFCs - Market size and forecast 2021-2026 ($ million)
      • Exhibit 33: Data Table on NBFCs - Market size and forecast 2021-2026 ($ million)
      • Exhibit 34: Chart on NBFCs - Year-over-year growth 2021-2026 (%)
      • Exhibit 35: Data Table on NBFCs - Year-over-year growth 2021-2026 (%)
    • 5.5 MFIs - Market size and forecast 2021-2026
      • Exhibit 36: Chart on MFIs - Market size and forecast 2021-2026 ($ million)
      • Exhibit 37: Data Table on MFIs - Market size and forecast 2021-2026 ($ million)
      • Exhibit 38: Chart on MFIs - Year-over-year growth 2021-2026 (%)
      • Exhibit 39: Data Table on MFIs - Year-over-year growth 2021-2026 (%)
    • 5.6 Market opportunity by Source
      • Exhibit 40: Market opportunity by Source ($ million)

    6 Customer Landscape

    • 6.1 Customer landscape overview
      • Exhibit 41: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

    7 Geographic Landscape

    • 7.1 Geographic segmentation
      • Exhibit 42: Chart on Market share by geography 2021-2026 (%)
      • Exhibit 43: Data Table on Market share by geography 2021-2026 (%)
    • 7.2 Geographic comparison
      • Exhibit 44: Chart on Geographic comparison
      • Exhibit 45: Data Table on Geographic comparison
    • 7.3 APAC - Market size and forecast 2021-2026
      • Exhibit 46: Chart on APAC - Market size and forecast 2021-2026 ($ million)
      • Exhibit 47: Data Table on APAC - Market size and forecast 2021-2026 ($ million)
      • Exhibit 48: Chart on APAC - Year-over-year growth 2021-2026 (%)
      • Exhibit 49: Data Table on APAC - Year-over-year growth 2021-2026 (%)
    • 7.4 Europe - Market size and forecast 2021-2026
      • Exhibit 50: Chart on Europe - Market size and forecast 2021-2026 ($ million)
      • Exhibit 51: Data Table on Europe - Market size and forecast 2021-2026 ($ million)
      • Exhibit 52: Chart on Europe - Year-over-year growth 2021-2026 (%)
      • Exhibit 53: Data Table on Europe - Year-over-year growth 2021-2026 (%)
    • 7.5 North America - Market size and forecast 2021-2026
      • Exhibit 54: Chart on North America - Market size and forecast 2021-2026 ($ million)
      • Exhibit 55: Data Table on North America - Market size and forecast 2021-2026 ($ million)
      • Exhibit 56: Chart on North America - Year-over-year growth 2021-2026 (%)
      • Exhibit 57: Data Table on North America - Year-over-year growth 2021-2026 (%)
    • 7.6 Middle East and Africa - Market size and forecast 2021-2026
      • Exhibit 58: Chart on Middle East and Africa - Market size and forecast 2021-2026 ($ million)
      • Exhibit 59: Data Table on Middle East and Africa - Market size and forecast 2021-2026 ($ million)
      • Exhibit 60: Chart on Middle East and Africa - Year-over-year growth 2021-2026 (%)
      • Exhibit 61: Data Table on Middle East and Africa - Year-over-year growth 2021-2026 (%)
    • 7.7 South America - Market size and forecast 2021-2026
      • Exhibit 62: Chart on South America - Market size and forecast 2021-2026 ($ million)
      • Exhibit 63: Data Table on South America - Market size and forecast 2021-2026 ($ million)
      • Exhibit 64: Chart on South America - Year-over-year growth 2021-2026 (%)
      • Exhibit 65: Data Table on South America - Year-over-year growth 2021-2026 (%)
    • 7.8 China - Market size and forecast 2021-2026
      • Exhibit 66: Chart on China - Market size and forecast 2021-2026 ($ million)
      • Exhibit 67: Data Table on China - Market size and forecast 2021-2026 ($ million)
      • Exhibit 68: Chart on China - Year-over-year growth 2021-2026 (%)
      • Exhibit 69: Data Table on China - Year-over-year growth 2021-2026 (%)
    • 7.9 US - Market size and forecast 2021-2026
      • Exhibit 70: Chart on US - Market size and forecast 2021-2026 ($ million)
      • Exhibit 71: Data Table on US - Market size and forecast 2021-2026 ($ million)
      • Exhibit 72: Chart on US - Year-over-year growth 2021-2026 (%)
      • Exhibit 73: Data Table on US - Year-over-year growth 2021-2026 (%)
    • 7.10 Germany - Market size and forecast 2021-2026
      • Exhibit 74: Chart on Germany - Market size and forecast 2021-2026 ($ million)
      • Exhibit 75: Data Table on Germany - Market size and forecast 2021-2026 ($ million)
      • Exhibit 76: Chart on Germany - Year-over-year growth 2021-2026 (%)
      • Exhibit 77: Data Table on Germany - Year-over-year growth 2021-2026 (%)
    • 7.11 India - Market size and forecast 2021-2026
      • Exhibit 78: Chart on India - Market size and forecast 2021-2026 ($ million)
      • Exhibit 79: Data Table on India - Market size and forecast 2021-2026 ($ million)
      • Exhibit 80: Chart on India - Year-over-year growth 2021-2026 (%)
      • Exhibit 81: Data Table on India - Year-over-year growth 2021-2026 (%)
    • 7.12 South Korea - Market size and forecast 2021-2026
      • Exhibit 82: Chart on South Korea - Market size and forecast 2021-2026 ($ million)
      • Exhibit 83: Data Table on South Korea - Market size and forecast 2021-2026 ($ million)
      • Exhibit 84: Chart on South Korea - Year-over-year growth 2021-2026 (%)
      • Exhibit 85: Data Table on South Korea - Year-over-year growth 2021-2026 (%)
    • 7.13 Market opportunity by geography
      • Exhibit 86: Market opportunity by geography ($ million)

    8 Drivers, Challenges, and Trends

    • 8.1 Market drivers
      • 8.2 Market challenges
        • 8.3 Impact of drivers and challenges
          • Exhibit 87: Impact of drivers and challenges in 2021 and 2026
        • 8.4 Market trends

          9 Vendor Landscape

          • 9.1 Overview
            • 9.2 Vendor landscape
              • Exhibit 88: Overview on Criticality of inputs and Factors of differentiation
            • 9.3 Landscape disruption
              • Exhibit 89: Overview on factors of disruption
            • 9.4 Industry risks
              • Exhibit 90: Impact of key risks on business

            10 Vendor Analysis

            • 10.1 Vendors covered
              • Exhibit 91: Vendors covered
            • 10.2 Market positioning of vendors
              • Exhibit 92: Matrix on vendor position and classification
            • 10.3 Accion International
              • Exhibit 93: Accion International - Overview
              • Exhibit 94: Accion International - Product / Service
              • Exhibit 95: Accion International - Key offerings
            • 10.4 Bajaj Finserv Ltd.
              • Exhibit 96: Bajaj Finserv Ltd. - Overview
              • Exhibit 97: Bajaj Finserv Ltd. - Business segments
              • Exhibit 98: Bajaj Finserv Ltd. - Key offerings
              • Exhibit 99: Bajaj Finserv Ltd. - Segment focus
            • 10.5 Bluevine Inc.
              • Exhibit 100: Bluevine Inc. - Overview
              • Exhibit 101: Bluevine Inc. - Product / Service
              • Exhibit 102: Bluevine Inc. - Key offerings
            • 10.6 HDB Financial Services Ltd.
              • Exhibit 103: HDB Financial Services Ltd. - Overview
              • Exhibit 104: HDB Financial Services Ltd. - Product / Service
              • Exhibit 105: HDB Financial Services Ltd. - Key offerings
            • 10.7 Kiva Microfunds
              • Exhibit 106: Kiva Microfunds - Overview
              • Exhibit 107: Kiva Microfunds - Product / Service
              • Exhibit 108: Kiva Microfunds - Key offerings
            • 10.8 Larsen and Toubro Ltd.
              • Exhibit 109: Larsen and Toubro Ltd. - Overview
              • Exhibit 110: Larsen and Toubro Ltd. - Business segments
              • Exhibit 111: Larsen and Toubro Ltd. - Key news
              • Exhibit 112: Larsen and Toubro Ltd. - Key offerings
              • Exhibit 113: Larsen and Toubro Ltd. - Segment focus
            • 10.9 Lendio Inc.
              • Exhibit 114: Lendio Inc. - Overview
              • Exhibit 115: Lendio Inc. - Product / Service
              • Exhibit 116: Lendio Inc. - Key offerings
            • 10.10 Lendr.Online LLC
              • Exhibit 117: Lendr.Online LLC - Overview
              • Exhibit 118: Lendr.Online LLC - Product / Service
              • Exhibit 119: Lendr.Online LLC - Key offerings
            • 10.11 On Deck Capital Inc.
              • Exhibit 120: On Deck Capital Inc. - Overview
              • Exhibit 121: On Deck Capital Inc. - Product / Service
              • Exhibit 122: On Deck Capital Inc. - Key offerings
            • 10.12 Ujjivan Small Finance Bank Ltd.
              • Exhibit 123: Ujjivan Small Finance Bank Ltd. - Overview
              • Exhibit 124: Ujjivan Small Finance Bank Ltd. - Business segments
              • Exhibit 125: Ujjivan Small Finance Bank Ltd. - Key offerings
              • Exhibit 126: Ujjivan Small Finance Bank Ltd. - Segment focus

            11 Appendix

            • 11.1 Scope of the report
              • 11.2 Inclusions and exclusions checklist
                • Exhibit 127: Inclusions checklist
                • Exhibit 128: Exclusions checklist
              • 11.3 Currency conversion rates for US$
                • Exhibit 129: Currency conversion rates for US$
              • 11.4 Research methodology
                • Exhibit 130: Research methodology
                • Exhibit 131: Validation techniques employed for market sizing
                • Exhibit 132: Information sources
              • 11.5 List of abbreviations
                • Exhibit 133: List of abbreviations

              Research Framework

              Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

              INFORMATION SOURCES

              Primary sources

              • Manufacturers and suppliers
              • Channel partners
              • Industry experts
              • Strategic decision makers

              Secondary sources

              • Industry journals and periodicals
              • Government data
              • Financial reports of key industry players
              • Historical data
              • Press releases

              DATA ANALYSIS

              Data Synthesis

              • Collation of data
              • Estimation of key figures
              • Analysis of derived insights

              Data Validation

              • Triangulation with data models
              • Reference against proprietary databases
              • Corroboration with industry experts

              REPORT WRITING

              Qualitative

              • Market drivers
              • Market challenges
              • Market trends
              • Five forces analysis

              Quantitative

              • Market size and forecast
              • Market segmentation
              • Geographical insights
              • Competitive landscape

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              Key Questions Answered

              • What are the key global market and the regional market share?
              • What are the revenue-generating key market segments?
              • What are the key factors driving and challenging this market’s growth?
              • Who are the key market vendors and their growth strategies?
              • What are the latest trends influencing the growth of this market?
              • What are the variables influencing the market growth in the primary regions?
              • What are the factors influencing the growth of the parent market?

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