In the financial year 2023, non-banking financial companies retail credit in India was estimated to 18 trillion Indian rupees. It was projected to further increase to 23 trillion Indian rupees by fiscal year 2025.

In the financial year 2023, home loans dominated the retail loan market in India by portfolio outstanding or value with a share of **** percent, followed by personal loans with over ** percent. Consumer-durable loans had the lowest portfolio outstanding or value in the retail loan category. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

India Credit Transfers: Retail: Volume data was reported at 20,200.861 Unit mn in Mar 2025. This records an increase from the previous number of 17,739.461 Unit mn for Feb 2025. India Credit Transfers: Retail: Volume data is updated monthly, averaging 7,467.364 Unit mn from Nov 2019 (Median) to Mar 2025, with 65 observations. The data reached an all-time high of 20,200.861 Unit mn in Mar 2025 and a record low of 1,795.071 Unit mn in Apr 2020. India Credit Transfers: Retail: Volume data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI008: Credit Transfer: Retail.

As of June2023, personal loans dominated the retail loans market in India by the count of active loans with a share of 20.8 percent. The segment was followed by credit card with around 18.5 percent. Auto loans ranked the lowest in terms of volume. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

India RBI Forecast: Bank Lending Survey: Loan Demand: Retail/Personal: Expectation: Substantial Decrease data was reported at 0.000 % in Mar 2025. This stayed constant from the previous number of 0.000 % for Dec 2024. India RBI Forecast: Bank Lending Survey: Loan Demand: Retail/Personal: Expectation: Substantial Decrease data is updated quarterly, averaging 0.000 % from Dec 2017 (Median) to Mar 2025, with 30 observations. The data reached an all-time high of 5.000 % in Dec 2020 and a record low of 0.000 % in Mar 2025. India RBI Forecast: Bank Lending Survey: Loan Demand: Retail/Personal: Expectation: Substantial Decrease data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Business and Economic Survey – Table IN.SD008: Bank Lending Survey: Reserve Bank of India: Loan Demand: Retail/Personal.

This statistic illustrates the credit growth rate of retail across banks in India from fiscal year 2014 to fiscal year 2017. The credit growth rate of retail across banks in India was approximately ** percent in the financial year 2017, down from a credit growth rate of about ** percent across the country in financial year 2016.

India Credit Transfers: Retail: Volume: Unified Payments Interface: Unstructured Supplementary Service Data data was reported at 0.126 Unit mn in Mar 2025. This records an increase from the previous number of 0.115 Unit mn for Feb 2025. India Credit Transfers: Retail: Volume: Unified Payments Interface: Unstructured Supplementary Service Data data is updated monthly, averaging 0.115 Unit mn from Nov 2019 (Median) to Mar 2025, with 65 observations. The data reached an all-time high of 0.277 Unit mn in Jul 2023 and a record low of 0.068 Unit mn in Feb 2022. India Credit Transfers: Retail: Volume: Unified Payments Interface: Unstructured Supplementary Service Data data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI008: Credit Transfer: Retail.

In 2022, non-banking financial companies in India dominated the retail loans market in terms of the number of loans, with ** percent market share. Private sector banks followed with around ** percent. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

India Credit Transfers: Retail: Value: National Automated Clearing House: Credit Payment data was reported at 1,764,012.300 INR mn in Mar 2025. This records an increase from the previous number of 1,408,805.100 INR mn for Feb 2025. India Credit Transfers: Retail: Value: National Automated Clearing House: Credit Payment data is updated monthly, averaging 1,196,767.600 INR mn from Nov 2019 (Median) to Mar 2025, with 65 observations. The data reached an all-time high of 1,787,571.614 INR mn in Mar 2023 and a record low of 613,639.140 INR mn in Feb 2021. India Credit Transfers: Retail: Value: National Automated Clearing House: Credit Payment data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI008: Credit Transfer: Retail.

In financial year 2024, Indian banks had deployed over *** trillion Indian rupees of gross bank credit. The lion's share of over ** trillion Indian rupees went to the retail sector, followed by service sector at around ** trillion Indian rupees. As of fiscal year 2024, on a year-on-year basis, retail loans - including housing, motor, or credit cards - had increased by ** percent compared to fiscal year 2023.

In financial year 2024, Indian banks had deployed over ** trillion Indian rupees to the retail loans sector. This was an increase by around ** percent compared to the previous year. The lion's share of credits went to the home loans segment with over ** trillion Indian rupees. Other segments with a credit value of more than two trillion Indian rupees were auto loans as well as credit card receivables.

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Micro Lending Market Size 2025-2029

The micro lending market size is forecast to increase by USD 532.1 billion at a CAGR of 28.1% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of advanced technology in microfinancing. This technological evolution is enabling financial institutions to expand their reach and provide more accessible and efficient services to a larger population, particularly in developing nations. However, despite this progress, there remains a substantial untapped market due to the lack of awareness about financial services in certain regions. This presents both opportunities and challenges for market participants. On the one hand, there is a vast potential customer base waiting to be served, offering significant growth prospects. On the other hand, there are complexities in reaching and serving these customers effectively, requiring innovative solutions and strategic partnerships.
One major trend is the adoption of advanced technology in microfinancing, enabling faster and more efficient loan processing and underwriting. This technology includes mobile applications, biometric identification, and artificial intelligence. Another trend is the increasing adoption of micro lending in developing nations, where access to traditional banking services is limited. Companies seeking to capitalize on this market opportunity must navigate these challenges with agility and a deep knowledge of local market dynamics. By leveraging technology, building strong partnerships, and addressing the unique needs of the market, businesses can effectively serve this growing customer base and differentiate themselves in a competitive landscape.

What will be the Size of the Micro Lending Market during the forecast period?

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The market continues to gain momentum as a critical component of global financial inclusion efforts. This market encompasses various financial inclusion strategies, including digital financial inclusion, loan disbursement through fintech platforms, and microfinance trends that prioritize responsible lending and sustainable finance. Financial inclusion policies have driven market growth, enabling greater financial resilience and empowerment for individuals and communities. Despite the market's progress, challenges persist, such as loan default, financial literacy programs, and debt management. Impact measurement, social impact reporting, and financial inclusion metrics are essential for assessing the market's success and addressing these challenges. Regulations and best practices play a crucial role in ensuring microfinance remains an effective solution for inclusive finance.
Borrowers, often from economically disadvantaged backgrounds, use these loans for various purposes, including starting small businesses in retail, food services, handicrafts, livestock rearing, transportation, recycling, and health services. Micro lending plays a crucial role in addressing income inequality by providing access to financial services for those excluded from the formal banking sector. Collateral is usually not required for these loans, making them more accessible than traditional loans. Financial inclusion initiatives have seen significant investment opportunities, with fintech startups and alternative data sources driving innovation. The market's future direction lies in data-driven lending, financial inclusion frameworks, and inclusive finance that caters to the unique needs of microenterprises and their development. Overall, the market's continued growth and evolution reflect its vital role in fostering financial inclusion and promoting economic prosperity.

How is this Micro Lending Industry segmented?

The micro lending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Banks
  NBFCs
  MFIs


End-user

  Small enterprises
  Solo entrepreneurs
  Micro-entrepreneurs


Geography

  APAC

    Australia
    China
    India
    Japan
    South Korea


  Europe

    Germany
    UK


  North America

    US


  Middle East and Africa



  South America

    Brazil

By Source Insights

The banks segment is estimated to witness significant growth during the forecast period. Micro lending banks provide financial services, such as loans, savings accounts, and insurances, to individuals with limited income. Established by various entities, including individuals, community organizations, private corporations, and foreign investors, these banks focus on economically disadvantaged clients, low-income households, and unbanked populations, including marginalized groups like women, youth, disabled individuals, and informal sector operators, such as micro-entrepreneurs

The Indian home mortgage finance market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 7% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, a burgeoning middle class with increasing disposable incomes and aspirations for homeownership is significantly boosting demand. Secondly, supportive government policies aimed at affordable housing initiatives and infrastructure development are creating a favorable environment for market expansion. Government schemes like Pradhan Mantri Awas Yojana (PMAY) have been instrumental in driving demand, especially in the affordable housing segment. Thirdly, the increasing availability of diverse financing options, including both fixed and floating interest rate mortgages across various tenures, caters to a wider range of borrower needs and preferences. Finally, the presence of numerous established players and emerging fintech companies is fostering competition, leading to improved services and customer experience. However, the market isn't without challenges. Interest rate fluctuations pose a significant risk, impacting affordability and potentially dampening demand during periods of high interest rates. Furthermore, regulatory changes and stringent lending norms can affect the ease of accessing home loans. Despite these restraints, the long-term outlook for the Indian home mortgage finance market remains positive, driven by underlying demographic trends and sustained economic growth. The segment breakdown reveals a strong demand across various tenures, with a considerable portion likely concentrated in the 6-10 year and 11-24 year categories, reflecting the preferences of a diverse borrower base. The major players, including HDFC, LIC Housing Finance, and others, are well-positioned to capitalize on this growth, although competition is intensifying. This comprehensive report provides an in-depth analysis of the India home mortgage finance market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, the report offers valuable insights into market trends, growth drivers, challenges, and future prospects. The study encompasses key segments like housing finance companies (HFCs) and banks, analyzing various loan interest rates (fixed and floating), and loan tenures (up to 5 years, 6-10 years, 11-24 years, and 25-30 years). The report's findings are crucial for investors, lenders, developers, and anyone involved in or interested in the booming Indian real estate sector. Recent developments include: November 2022: Tata Capital Housing Finance, a Tata Capital subsidiary, intends to push into the home loan market significantly. To do so, it is looking for the capital of INR 3,000 crore from the National Housing Bank and intends to raise INR 1,000 crore through bonds. Both retail and real estate developers are expected to be eligible for financing from the organization., October 2022: Private sector lender HDFC Bank will complete its planned merger with Housing Development Finance Corp. Ltd by the first quarter of FY24 instead of the original target of the third quarter.. Notable trends are: Availability of Affordable Housing in India is Driving the Market Growth.

India - Number of Credit transfers in ECS / NECS, Payment systems, retail

India NBFCs: Gross Advances: Non Food Credit: Retail Loans: Consumer Durables data was reported at 409,570.000 INR mn in 2024. This records an increase from the previous number of 315,410.000 INR mn for 2023. India NBFCs: Gross Advances: Non Food Credit: Retail Loans: Consumer Durables data is updated yearly, averaging 191,710.000 INR mn from Mar 2016 (Median) to 2024, with 9 observations. The data reached an all-time high of 409,570.000 INR mn in 2024 and a record low of 30,360.000 INR mn in 2016. India NBFCs: Gross Advances: Non Food Credit: Retail Loans: Consumer Durables data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAH065: Non Banking Financial Companies: Gross Advances.

During the financial year 2023, the year-on-year growth rate of both banks and non-banking financial companies (NBFCs) in India increased to ** percent and ** percent, respectively. In the last ***** financial years, loan advances by NBFCs remained less than those by banks. Credit market in India The organized loan market in India has many players that can be categorized into banks or NBFCs. Traditionally, banks have been the main source of credit for various industries and sectors within the Indian economy. However, in recent years, NBFCs have emerged as a viable alternative to traditional banks, offering services such as loans, savings and investment plans, credit facilities, and insurance among others. While NBFCs are making significant strides, banks are also expanding their presence in the credit market. For example, to compete with NBFCs, banks have been increasing their disbursement of gold loans in recent years. NBFCs: driving financial inclusion NBFCs have emerged as a significant force in promoting financial inclusion in India by successfully catering to the underserved segments of society. As of September 2023, NBFCs in the country have disbursed loans and advances amounting to over *** billion U.S. dollars. The growing market share of NBFCs can be attributed to the lighter and more flexible regulations imposed by the Reserve Bank of India, as well as their focus on specific sectors and niche markets. The NBFC sector has been experiencing double-digit growth recently, and this trend is expected to continue in the near future.

Retail Banking Market Outlook

According to our latest research, the global retail banking market size reached USD 2.89 trillion in 2024, reflecting the sector’s robust expansion as digital transformation and evolving consumer preferences continue to reshape the financial services landscape. The market is projected to grow at a CAGR of 4.7% from 2025 to 2033, reaching an estimated USD 4.36 trillion by 2033. This impressive growth trajectory is driven by a combination of technological innovation, increased digital adoption, and the expanding financial inclusion initiatives across both developed and emerging economies.

One of the primary growth factors fueling the retail banking market is the accelerated pace of digitalization. Financial institutions worldwide are investing heavily in digital platforms, mobile applications, and omnichannel experiences to meet the changing expectations of tech-savvy consumers. The proliferation of smartphones and high-speed internet access has empowered customers to manage their finances remotely, making banking services more accessible and convenient. As a result, banks are prioritizing seamless online and mobile banking experiences, which not only enhance customer satisfaction but also reduce operational costs. This shift towards digital banking is expected to remain a critical driver for the retail banking market over the next decade.

Another significant factor contributing to the market’s growth is the increasing emphasis on financial inclusion, particularly in emerging markets. Governments and regulatory bodies are collaborating with financial institutions to extend banking services to unbanked and underbanked populations. Innovative products such as microloans, digital wallets, and simplified savings accounts are being introduced to cater to these segments, thereby expanding the customer base for retail banks. Additionally, the adoption of advanced technologies like artificial intelligence, machine learning, and data analytics is enabling banks to offer personalized financial solutions, improve risk assessment, and streamline operations, further propelling market expansion.

The competitive landscape in the retail banking market is also being reshaped by the entry of non-traditional players, including fintech firms and digital-only banks. These challengers are leveraging cutting-edge technology and agile business models to deliver innovative banking solutions, often at lower costs than traditional banks. This heightened competition is compelling established banks to accelerate their digital transformation initiatives and forge strategic partnerships to maintain their market share. Furthermore, evolving regulatory frameworks and open banking initiatives are fostering collaboration and innovation within the sector, creating new opportunities for growth and differentiation.

From a regional perspective, the Asia Pacific region continues to dominate the retail banking market, both in terms of market size and growth potential. Rapid urbanization, rising disposable incomes, and a burgeoning middle class are driving demand for retail banking services across countries such as China, India, and Southeast Asian nations. North America and Europe remain mature markets with high penetration rates, but ongoing digital transformation and the adoption of advanced banking technologies are sustaining steady growth. Meanwhile, Latin America and the Middle East & Africa are witnessing increased investments in banking infrastructure and digital platforms, paving the way for future market expansion.

Service Type Analysis

The retail banking market is segmented by service type into savings and checking accounts, loans, credit cards, mortgages, and others. Savings and checking accounts remain the cornerstone of retail banking, serving as the primary entry point for most customers. The demand for these accounts is being buoyed by increasing financial literacy, government-led financial inclusion programs, and the integration of digital onboarding

The India Home Loan Market is segmented By Customer Type (Salaried, Self-Employed), By Source (Bank and Housing Finance Companies), By Interest Rate (Fixed Rate and Floating Rate), and By Tenure (up to 5 Years, 6 - 10 Years, 11 - 24 Years, and 25 - 30 Years). The report offers market size and forecasts in value (USD) for all the above segments.

In financial year 2024, the consumption lending in India had the highest lending volume of around 383 million loans as compared to other lending segments like microfinance and commercial lending. The lending industry in India witnessed a significant growth in recent years.

In financial year 2024, the **************** remained the largest recipient of credit from the NBFC sector. This was followed by the ************* in the retail sector. The total credit employed by NBFCs was approximately ** trillion rupees that year.