Loan Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (Housing Loan, Mortgage Loan, Personal Loan, Auto Loan, Business Loan, Home Improvement Loan, Others (Gold Loan, Education Loan, Agriculture Loan, Retail Loan, etc.), By Provider Type (Bank, Non-Banking Financial Companies, and Others (Fintech Companies, etc.), By Interest Rate (Fixed and Floating), By Tenure Period (Less than 5 years, 5 years to 10 Years, 11 years to 20 years, More than 20 Years), By Region
Published Date: February - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationLoan Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (Housing Loan, Mortgage Loan, Personal Loan, Auto Loan, Business Loan, Home Improvement Loan, Others (Gold Loan, Education Loan, Agriculture Loan, Retail Loan, etc.), By Provider Type (Bank, Non-Banking Financial Companies, and Others (Fintech Companies, etc.), By Interest Rate (Fixed and Floating), By Tenure Period (Less than 5 years, 5 years to 10 Years, 11 years to 20 years, More than 20 Years), By Region
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India Loan Market was valued at USD 329.88 billion in 2024 and is anticipated to grow USD 561.47 billion by 2029 with a CAGR of 9.33% through 2030.
The global loan market is anticipated to project robust growth in the forecast period. The rising investment and infrastructure across the world have directly impacted the global loan industry in a positive way. Moreover, growing demand for loan among individuals for personal usage is also significantly influencing the loan Industry.
Major purchases, investments, renovations, debt consolidation, and business endeavors are certain essential uses of loan. Loan aid in the expansion of already existing businesses. The expansion of an economy's total money supply and fostering competition has been made possible by loan to new businesses.
A loan is a major source of income for many banks, as well as some NBFCs that offer credit facilities and credit cards through which they generate interest and fees in the form of loan repayment.
China and the US make up 95% of the loan market. However, the consumer loan model in China is different from the US model. China is the largest alternative loan market globally, with a 90% market share and a USD265.7 billion transaction value expected in 2020. However, the growth of Chinese external lending has increased to nearly USD2.0 trillion as of June 2022. This includes bank loans, trade credits, and debt claims from China’s FDI (in other words, intercompany lending). Bank loans and trade credits account for most of this total. Increased government regulation has had a significant impact on the China recently, which has resulted in a decline in the number of landing platforms and Loan. However, within the US which is the second-largest alternative lending market in the world, had a market value of USD 33.5 billion in 2020. Here, major players like Lending Club, Prosper, and SoFi are based.
The UK market was expected to reach a peak of USD 4.8 billion in 2020, making it the third-largest alternative lending market after the two top markets. However, Switzerland, Denmark, and Spain are predicted to experience the highest growth rates over the next few years, increasing by respective rates of 27.4%, 23.7%, and 22.9% annually.
The demand for loan has also expanded in the European region in recent years. It is mainly due to the local population's growing ease of availing loan without utilizing the initial savings in order to plan investments for any personal or commercial purposes. With the European Loan market already developed and saturated, demand is anticipated to be broadly steady over time.
In India, the market for home loans, auto loans, and other loans to major industries all experienced double-digit growth levels as the loan growth rate pushed up bank lending, which doubled in January 2023. According to the most recent information on sectoral flow of bank credit released by the Reserve Bank of India, non-food bank credit increased annually (y-o-y) by 16.7% in January 2023 compared to 8.3% a year earlier. Compared to January 2022, loan to industry increased by 8.7% (year over year) in January 2023. Large-industry loans increased by 6.5% compared to 0.2% a year earlier as highly rated corporates, which previously managed market-based funds that were less expensive, are now turning to banks for their funding requirements as market rates have risen.
Increased Cooperation with Fintech Professionals and Companies
In a variety of financial industries, including insurance, banking, payments, and financial management, fintech companies are still growing and taking up space. This technology has entered the mainstream, as evidenced by the survey's finding that 64% of the world's population has adopted fintech. The number of professionals with a broad range of tech skills is also growing. A master's degree in accounting, for instance, is a skill upgrade that some people have chosen to pursue. Today's accounting professionals are well versed in pertinent ideas like data analytics and financial law in addition to having a firm grasp of core accounting sensibilities. In the cutthroat lending market of today, they are therefore a highly valuable asset found at within the market.
Therefore, it is advisable to the lending companies must cooperate and partner with fintech firms as well as experts who concentrate on third party processing and data collection in order to further advance innovation. By doing this, the lenders are able to maximize their digital transformation.
Rising Launch of Digital Platform Aiding the Market Growth
The market is growing as a result of the increased uptake of cutting-edge technologies, including chatbots, IoT, AI, and big data analytics. Additionally, as digitalization continues to grow, loan providers hope to invest quickly in customer engagement by offering digital and voice-activated assistants. Furthermore, chatbots which is a software program is used to conduct online chat conversations which are widely employed by businesses that provide personal loan because they enable more individualized and user-friendly experiences for clients. Therefore, various companies are looking for a shift towards fintech platforms. For instance, Versana, a new fintech supported by four of the biggest banks in the world, including JPMorgan, Bank of America, Citi, and Credit Suisse, announced its intention to use digital technology to boost efficiency in the still largely analogue and sluggish private loan market as of March 2022.In the foreseeable future, it is anticipated that this tendency will persist. Moreover, customers reliance towards digital platform has increased over the past few years.
Growing demand for loan from small business is fueling the market
A significant factor affecting the market's growth is the accelerating demand and continuously growing support from the small business which requires subsequent funding for these Loan. However, according to the International Finance Corporation (IFC), 65 million businesses, or 40% of formal micro, small, and medium-sized enterprises (MSMEs) in developing countries, have an annual unmet financing need of $5.2 trillion, or 1.4 times the level of global MSME lending at present. The largest portion of the global finance gap (46%) is accounted for by East Asia and the Pacific, which is followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%). However, to cater this issue various large banks have targeted to support these small businesses through loan. For instance, one of the most active lenders of small business Loan is Wells Fargo. It was one of the largest national banks as of September 2022, having approved more than USD377 million in Small Business Administration 7(a) Loan for the fiscal year 2022.
Market Segmentation
The global Loan market is segmented based on type, provider type, interest rate, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into Housing Loan, Mortgage Loan, Personal Loan, Auto Loan, Business Loan, Home Improvement, Others (Gold Loan, Education Loan, Agriculture Loan, Retail Loan, etc.). Based on Provider Type, the market is categorized into (Bank, Non-Banking Financial Companies, and Others (Fintech Companies, etc.). Based on Interest Rate, the market is segmented into Fixed and Floating. Based on Tenure Periods, the market is segmented into Less than 5 years, 5 years to 10 Years, 11 years to 20 years, More than 20 Years. The market analysis also studies the regional segmentation, which is divided among North America, Europe, Asia-Pacific, Middle East & Africa, and South America.
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Company Profiles
Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc., Wells Fargo & Co., U.S. Bancorp, PNC Financial Service Group, Inc., American Express Company, Ally Financial Inc., Truist Financial Corporation, Bank of China, are among the major market players in the global platform that lead the market growth of the global Loan market.
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Attribute |
Details |
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Base Year |
2022 |
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Historical Years |
2018 – 2021 |
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Estimated Year |
2023 |
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Forecast Period |
2024 – 2028 |
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Quantitative Units |
Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028 |
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Report Coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Segments Covered |
· Type · Provider Type · Interest Rate · Tenure Period · Region · Company |
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Regional Scope |
North America, Europe, Asia-Pacific, Middle East & Africa and South America |
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Country Scope |
United States; Canada; Mexico; United Kingdom; Germany; Italy; France; Spain; China; India; Japan; South Korea; Australia; UAE; South Africa; Turkey; Saudi Arabia; Brazil; Argentina; Colombia |
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Key Companies Profiled |
Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc., Wells Fargo & Co., U.S. Bancorp, PNC Financial Service Group, Inc., American Express Company, Ally Financial Inc., Truist Financial Corporation, Bank of China |
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Customization Scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and Purchase Options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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