As of June 2023, personal loans dominated the retail loans market in India by the count of active loans, with a share of **** percent. The segment was followed by credit card with around **** 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.

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.

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 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.

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.

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.

In India Retail Banking Market is projected to grow from USD 1.32 trillion in 2025 to USD 1.95 trillion by 2031, at a CAGR of 6.8%

India SCB: Credit Outstanding: Non Food: Personal Loans: Consumer Durables data was reported at 234,017.486 INR mn in Mar 2025. This records a decrease from the previous number of 245,063.610 INR mn for Feb 2025. India SCB: Credit Outstanding: Non Food: Personal Loans: Consumer Durables data is updated monthly, averaging 96,410.000 INR mn from Mar 2003 (Median) to Mar 2025, with 265 observations. The data reached an all-time high of 246,978.359 INR mn in Nov 2024 and a record low of 31,740.000 INR mn in Aug 2017. India SCB: Credit Outstanding: Non Food: Personal 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.KAH001: Scheduled Commercial Banks: Credit: Gross Outstanding: by Sector. [COVID-19-IMPACT]

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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

Asset Based Lending Market Outlook

The global market size for Asset Based Lending (ABL) was valued at approximately $500 billion in 2023, with projections indicating a growth to $850 billion by 2032, driven by a compound annual growth rate (CAGR) of 6%. This market's expansion is primarily fueled by the increasing demand for flexible financing solutions amid uncertain economic conditions and heightened focus on optimizing working capital.

One of the significant growth factors in the Asset Based Lending market is the increasing need for liquidity among businesses, especially small and medium enterprises (SMEs). These businesses often face challenges in securing traditional financing due to stringent credit requirements. Asset Based Lending provides a viable alternative by allowing companies to leverage their assets, such as accounts receivable, inventory, and equipment, to secure loans. This flexibility enables businesses to manage cash flow more effectively and invest in growth opportunities.

Another crucial driver of market growth is the rising adoption of Asset Based Lending in various industries, including manufacturing, retail, and healthcare. These sectors often require substantial capital investments and face fluctuating cash flows. ABL offers tailored financing solutions that can adapt to the unique needs of these industries, providing them with the necessary funds to maintain operations and pursue expansion projects. Additionally, the increasing complexity of global supply chains and the need for efficient inventory management further drive the demand for ABL.

The technological advancements in financial services also play a pivotal role in the growth of the Asset Based Lending market. The integration of advanced analytics, artificial intelligence, and blockchain technology has streamlined the ABL process, making it more efficient and transparent. These innovations have improved risk assessment, reduced processing times, and enhanced the overall customer experience. As a result, more businesses are turning to ABL as a preferred financing option.

Regionally, North America holds a significant share of the Asset Based Lending market, driven by the presence of a large number of SMEs and the well-established financial infrastructure. In contrast, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. This growth can be attributed to the rapid industrialization, increasing number of SMEs, and the growing need for alternative financing solutions in countries like China and India. The favorable government policies and initiatives to support small businesses in these regions further contribute to the market's expansion.

Shadow Banking has emerged as a significant component of the financial ecosystem, complementing traditional banking channels by providing alternative financing solutions. This sector includes a variety of financial intermediaries and non-bank financial institutions that offer credit and liquidity services outside the conventional banking system. The rise of Shadow Banking is driven by the increasing demand for flexible and innovative financial products, which cater to the needs of businesses that may not meet the stringent requirements of traditional banks. As a result, Shadow Banking plays a crucial role in supporting economic growth by enhancing access to capital for small and medium enterprises (SMEs) and other underserved segments.

Type Analysis

In the Asset Based Lending market, the type segment is divided into revolving loans and term loans. Revolving loans are a popular choice among businesses due to their flexibility and continuous access to funds. These loans allow companies to borrow, repay, and borrow again up to a predetermined credit limit, making them ideal for managing short-term cash flow needs. The demand for revolving loans is particularly high among retail and manufacturing sectors, where businesses often face seasonal fluctuations in sales and production cycles.

Term loans, on the other hand, provide a lump sum amount that is repaid over a fixed period with regular installments. These loans are typically used for significant capital expenditures, such as purchasing equipment or expanding production facilities. The manufacturing and healthcare industries are major users of term loans, as these sectors often require substantial investments in machinery and infrastructure. The predictability of repayment schedules makes

The India Private Banking Market is segmented based on the banking sector (Retail Banking, Commercial Banking, Investment Banking, and others). The report offers market size and forecasts for the India Private Banking Market in value (USD Million) for all the above segments.

India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Increase data was reported at 61.538 % in Dec 2024. This records a decrease from the previous number of 83.333 % for Sep 2024. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Increase data is updated quarterly, averaging 70.370 % from Sep 2017 (Median) to Dec 2024, with 30 observations. The data reached an all-time high of 84.615 % in Dec 2021 and a record low of 19.048 % in Jun 2020. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Increase 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.

In June 2025, the repo rate set by Reserve Bank of India stood at 5.5 percent. In May 2022, the repo rate was 4.4 percent, after which it spiked continuously until 2025. The repo rate is defined as the rate at which the central bank of a country, in this case the Reserve Bank of India (RBI), lends money to commercial banks in case of lack of funds.

India RBI: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Assessment: Somewhat Tightening data was reported at 4.000 % in Dec 2024. This records a decrease from the previous number of 4.348 % for Sep 2024. India RBI: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Assessment: Somewhat Tightening data is updated quarterly, averaging 1.786 % from Sep 2017 (Median) to Dec 2024, with 30 observations. The data reached an all-time high of 28.571 % in Jun 2020 and a record low of 0.000 % in Sep 2023. India RBI: Bank Lending Survey: Loan Terms and Conditions: Retail/Personal: Assessment: Somewhat Tightening 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.SD015: Bank Lending Survey: Reserve Bank of India: Loan Terms and Conditions: Retail/Personal.

Retail Banking Market Outlook

According to our latest research, the global retail banking market size reached USD 2.89 trillion in 2024, reflecting the sectorÂ’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 marketÂ’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.

In the evolving landscape of retail banking, Hyper-Personalization in Banking is becoming a pivotal strategy for financial institutions aiming to enhance customer engagement and satisfaction. By leveraging big data, artificial intelligence, and machine learning, banks can gain deeper insights into individual customer behaviors and preferences. This allows them to tailor products, services, and communication to meet the unique needs of each customer. As consumers increasingly demand personalized experiences akin to those offered by tech giants, banks are investing in technologies that enable real-time data analysis and customer interaction. This shift not only improves customer loyalty but also opens new revenue streams by offering targeted financial solutions that resonate with customers on a personal level.

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 m

India Digital Banking Platforms Market Size, Market Share and Digital Banking Platforms Market Growth & Future 2024, By Banking Type (Retail Banking & Corporate Banking), By Deployment Mode, By Banking Mode, Competition, Forecast & Opportunities.

The India private banking market is experiencing robust growth, driven by increasing disposable incomes, a burgeoning affluent population, and the rising demand for sophisticated wealth management services. The market's Compound Annual Growth Rate (CAGR) exceeding 8% from 2019-2024 indicates a strong trajectory, projected to continue into the forecast period (2025-2033). Key drivers include the expanding middle and upper-middle classes seeking personalized banking solutions, a growing preference for digital banking channels, and increased financial awareness among younger generations. Furthermore, the rise of fintech companies and their innovative products are disrupting traditional banking models, forcing established players to adapt and innovate. Retail banking, particularly commercial and investment banking segments, dominate the market, with major players like HDFC Bank, ICICI Bank, and Axis Bank holding significant market share. While the market faces restraints such as regulatory changes and competition from non-banking financial companies (NBFCs), the overall outlook remains positive, with considerable growth potential in the coming years. The market size in 2025 is estimated to be substantial, considering the strong historical growth and projected CAGR. Furthermore, niche segments within private banking, like wealth management and specialized financial advisory, are exhibiting even faster growth rates, further boosting the overall market expansion. The segmentation of the market primarily focuses on retail banking, which encompasses commercial and investment banking services. This indicates a strong focus on individual clients and their diverse financial needs, rather than solely catering to large corporate entities. The competitive landscape is fiercely contested, with a mix of established domestic banks and international players vying for market share. The strategic initiatives undertaken by banks, such as digital transformation, expansion of product portfolios, and strategic partnerships, will play a crucial role in determining their success within this rapidly evolving market. This dynamism presents opportunities for innovative entrants and those banks successfully adapting to the shifting needs of India's affluent and rapidly growing customer base. Recent developments include: December 2022: Housing Development Finance Corporation (HDFC) announced a merger with HDFC Bank. The merger is expected to conclude in Q2 of 2023., March 2022: Axis Bank proposed the acquisition of Citibank's consumer businesses in India. This will help Axis bank to strongly positions itself growing market share.. Notable trends are: Increasing Private Sector Bank Assets is Driving the Market.

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.

In the financial year 2024, the consumption lending industry in India had the highest lending portfolio of around ** trillion Indian rupees as compared to other lending segments like microfinance and retail lending. The lending industry in India witnessed a significant growth in recent years.

India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Decrease data was reported at 0.000 % in Dec 2024. This stayed constant from the previous number of 0.000 % for Sep 2024. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate Decrease data is updated quarterly, averaging 1.724 % from Sep 2017 (Median) to Dec 2024, with 30 observations. The data reached an all-time high of 34.615 % in Jun 2021 and a record low of 0.000 % in Dec 2024. India RBI: Bank Lending Survey: Loan Demand: Retail/Personal: Assessment: Moderate 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.