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The global personal loan market is expected to grow at a CAGR of 32.20% between 2024 and 2032. The market is being driven by rising requirement of money for various needs, improving standards of living, and increasing accessibility of personal loans.
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Personal loan, also known as consumer loan, refers to a certain amount of money which is borrowed by a debtor to fulfil a personal financial need, such as debt consolidation, home improvements, emergency expenses, or large purchases. Interest rates for personal loans can vary depending upon the loan provider and credit history of the borrower. A personal loan is borrowed on a returnable basis and once the repayment is done, the promissory note, which is the evidence of loan, gets retired.
The key drivers shaping the personal loan market outlook include the rising demand for short-term financing, facilitated by low-income levels and rapid lending and approval processes. The market is also benefiting from the development of digitisation, which has streamlined the loan application and approval procedures, making personal loans more accessible to a broader population. Moreover, the availability of collateral-free credit programs and the flexibility offered by personal loans, such as choosing the loan length, have attracted more individuals towards this form of financing, further boosting market growth.
Adoption of digital technologies, rising expenditure on luxury goods, and government initiatives promoting lower interest rates have led to personal loan market development
May 2024
Nationwide has doubled its personal loan cap to EUR 50,000 to help fund home improvements. The move aims to provide more financial flexibility for customers looking to upgrade their living spaces.
November 2023
LendingClub Bank has crossed USD 1 billion in personal loans sold through its Structured Loan Certificates Program (SLCLC Program). The company expects to double this volume to USD 2 billion by mid-2024 as it continues to scale.
Adoption of digital technologies
One of the most significant trends in the personal loan market is the increasing adoption of digital technologies. Lenders are leveraging AI, big data analytics, IoT, and chatbots to streamline operations, improve customer experience, and ensure faster loan approvals.
Emergence of P2P lending
P2P lending does not involve interference from official financial institutions, making it more accessible compared to other modes. It also provides higher returns to investors and comes with lower interest rates. Platforms like Zopa in the UK and Lending Club in the US have become popular for their P2P lending services.
Increasing financial inclusion in rural areas
The rising financial inclusion among consumers have contributed significantly to the personal loan market expansion. In India, the government's efforts to promote financial inclusion through initiatives like the Pradhan Mantri Jan Dhan Yojana have led to a significant increase in the number of people with access to banking services, thereby driving the demand for personal loans.
Focus on enhancing client communications
Market players are focusing on enhancing immediate client communications and adopting digital tools to meet consumers' constant needs for personal loans. Fintech companies like Affirm and Klarna are offering personalised loan options and flexible repayment terms to increase customer satisfaction.
Increasing migration to smart urban cities, rising requirement of money to fund luxury lifestyles, and increasing accumulation of materialistic products are other crucial trends in the market as personal loans are often being used for home upgrades and purchasing of vehicles. Moreover, the rising adoption of cloud-based software to improve risk-assessment to be prudent about non-performing assets, is likely to add to the personal loans market growth. Moreover, increasing financial literacy among the young population is further shaping the dynamics of the market by increasing their demand.
Additionally, banks like HDFC Bank and ICICI Bank in India have introduced AI-powered chatbots to assist customers with loan applications and provide personalised services. The use of digitalisation and automation has made the documentation process easier, attracting more customers to apply for loans. Banks and NBFCs are adopting technology to enable paperless and automated lending processes, which is expected to open new avenues for the market in the coming years.
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The EMR’s report titled “Personal Loan Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Age
Market Breakup by Marital Status
Market Breakup by Employment Status
Market Breakup by Region
P2P lending segment is witnessing substantial growth as it provides higher returns and lower interest
The P2P marketplace lending segment, based on type, accounts for a healthy share of the market as P2P marketplace lending does not involve interference of any official financial institution. This type of lending is more accessible as compared to other modes, provides higher returns to investors, and comes with lower rate of interest. These advantages are fuelling the demand of this segment and contributing towards the growth of the personal loan market. Meanwhile, the balance sheet lending type of personal loans is expected to register a decent growth rate in the forecast period, as they provide greater transparency and bridge the gap between lenders and debtors.
The salaried segment holds a significant market share due to the better credit history of salaried individuals
The salaried segment dominates the market due to the steady income and better credit history of salaried individuals. Key growth drivers for the salaried segment include increasing awareness and financial inclusion among salaried individuals, especially in developing economies, rising demand for short-term financing to meet personal expenses, rapid lending and approval processes offered by lenders, and the adoption of digital technologies like AI, big data analytics, and chatbots by lenders to streamline operations and improve customer experience.
As per the personal loan market analysis, the business segment is projected to exhibit the fastest growth rate during the forecast period due to the increasing number of small and medium enterprises and the growing need for financing among business owners. Key growth drivers for the segment include rising demand for business loans and working capital financing, increasing adoption of digital lending platforms by business owners, availability of collateral-free credit programs and flexible repayment options, and the emergence of alternative lending platforms like P2P lending and crowdfunding.
Market players are focused on enhancing client communications and leveraging technological advancements to streamline operations, improve customer experience, and drive market growth
American Express Company is one of the largest financial service corporations across the globe which provides personal, small business, and corporate credit cards. This company also provides services related to freight forwarding, travel cards, innovative digital products, and loans. It was founded in 1850 and is headquartered in New York, United States.
Avant, LLC. is a leading financial technology company which provides debt consolidation loans, emergency loans, home improvement loans, and instalment loans. Established in 2012 and based out of Illinois in the United States, this company strives to provide personal and other types of loans at lowest interest rates to its prime customers.
DBS Bank Limited is a prominent bank which provides services related to personal banking, credit cards, wealth management, corporate banking, and SME banking. The company also provides smart digital solutions that bring convenience to customers within a banking system. The establishment of this bank took place in 1968 and is headquartered in Marina Bay district of Singapore.
The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York City, United States. It offers a wide range of financial services and products, including investment banking, securities underwriting, asset management, wealth management, investment management, private-equity funds, hedge funds, and services such as financial planning and transaction banking.
Other key players in the global personal loan market include LendingClub Bank, N.A., Prosper Funding LLC., SoFi Lending Corp., Truist Financial Corporation, Wells Fargo & Company, and Industrial and Commercial Bank of China Limited, among others.
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Asia Pacific leads the market due to its large base of population and their ever-rising requirements
The Asia Pacific accounts for a sizable portion of the market for personal loans, driven by the increasing loan inquiries by youngsters across emerging economies, rapid boost in consumption-led credit products, and increasing loan access to improve quality of life. Loan growth in well-established economies such as Singapore is further invigorating the personal loan market share in the Asia Pacific.
In the coming years, Europe is likely to register a healthy growth in the market for personal loans, owing to the robust growth of digital loan application services, with a sizable share of the market accounted for by the United Kingdom. The increasing number of lenders from traditional financial institution and banks in United Kingdom is leading to a rapid expansion of the market in the country.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Type |
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Breakup by Age |
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Breakup by Marital Status |
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Breakup by Employment Status |
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Breakup by Region |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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Personal Loan Market Regional Analysis
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
6.1 Global
6.2 Regional
7 Opportunities and Challenges in the Market
8 Global Personal Loan Market Analysis
8.1 Key Industry Highlights
8.2 Global Personal Loan Historical Market (2018-2023)
8.3 Global Personal Loan Market Forecast (2024-2032)
8.4 Global Personal Loan Market by Type
8.4.1 P2P Marketplace Lending
8.4.1.1 Historical Trend (2018-2023)
8.4.1.2 Forecast Trend (2024-2032)
8.4.2 Balance Sheet Lending
8.4.2.1 Historical Trend (2018-2023)
8.4.2.2 Forecast Trend (2024-2032)
8.5 Global Personal Loan Market by Age
8.5.1 Less than 30 Years
8.5.1.1 Historical Trend (2018-2023)
8.5.1.2 Forecast Trend (2024-2032)
8.5.2 30-50 Years
8.5.2.1 Historical Trend (2018-2023)
8.5.2.2 Forecast Trend (2024-2032)
8.5.3 More than 50 Years
8.5.3.1 Historical Trend (2018-2023)
8.5.3.2 Forecast Trend (2024-2032)
8.6 Global Personal Loan Market by Marital Status
8.6.1 Married
8.6.1.1 Historical Trend (2018-2023)
8.6.1.2 Forecast Trend (2024-2032)
8.6.2 Single
8.6.2.1 Historical Trend (2018-2023)
8.6.2.2 Forecast Trend (2024-2032)
8.7 Global Personal Loan Market by Employment Status
8.7.1 Salaried
8.7.1.1 Historical Trend (2018-2023)
8.7.1.2 Forecast Trend (2024-2032)
8.7.2 Business
8.7.2.1 Historical Trend (2018-2023)
8.7.2.2 Forecast Trend (2024-2032)
8.8 Global Personal Loan Market by Region
8.8.1 North America
8.8.1.1 Historical Trend (2018-2023)
8.8.1.2 Forecast Trend (2024-2032)
8.8.2 Europe
8.8.2.1 Historical Trend (2018-2023)
8.8.2.2 Forecast Trend (2024-2032)
8.8.3 Asia Pacific
8.8.3.1 Historical Trend (2018-2023)
8.8.3.2 Forecast Trend (2024-2032)
8.8.4 Latin America
8.8.4.1 Historical Trend (2018-2023)
8.8.4.2 Forecast Trend (2024-2032)
8.8.5 Middle East and Africa
8.8.5.1 Historical Trend (2018-2023)
8.8.5.2 Forecast Trend (2024-2032)
9 North America Personal Loan Market Analysis
9.1 United States of America
9.1.1 Historical Trend (2018-2023)
9.1.2 Forecast Trend (2024-2032)
9.2 Canada
9.2.1 Historical Trend (2018-2023)
9.2.2 Forecast Trend (2024-2032)
10 Europe Personal Loan Market Analysis
10.1 United Kingdom
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Germany
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 France
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Italy
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
10.5 Others
11 Asia Pacific Personal Loan Market Analysis
11.1 China
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Japan
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 India
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 ASEAN
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Australia
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Others
12 Latin America Personal Loan Market Analysis
12.1 Brazil
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Argentina
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Mexico
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Others
13 Middle East and Africa Personal Loan Market Analysis
13.1 Saudi Arabia
13.1.1 Historical Trend (2018-2023)
13.1.2 Forecast Trend (2024-2032)
13.2 United Arab Emirates
13.2.1 Historical Trend (2018-2023)
13.2.2 Forecast Trend (2024-2032)
13.3 Nigeria
13.3.1 Historical Trend (2018-2023)
13.3.2 Forecast Trend (2024-2032)
13.4 South Africa
13.4.1 Historical Trend (2018-2023)
13.4.2 Forecast Trend (2024-2032)
13.5 Others
14 Market Dynamics
14.1 SWOT Analysis
14.1.1 Strengths
14.1.2 Weaknesses
14.1.3 Opportunities
14.1.4 Threats
14.2 Porter’s Five Forces Analysis
14.2.1 Supplier’s Power
14.2.2 Buyer’s Power
14.2.3 Threat of New Entrants
14.2.4 Degree of Rivalry
14.2.5 Threat of Substitutes
14.3 Key Indicators for Demand
14.4 Key Indicators for Price
15 Competitive Landscape
15.1 Market Structure
15.2 Company Profiles
15.2.1 American Express Company
15.2.1.1 Company Overview
15.2.1.2 Product Portfolio
15.2.1.3 Demographic Reach and Achievements
15.2.1.4 Certifications
15.2.2 Avant, LLC.
15.2.2.1 Company Overview
15.2.2.2 Product Portfolio
15.2.2.3 Demographic Reach and Achievements
15.2.2.4 Certifications
15.2.3 DBS Bank Limited
15.2.3.1 Company Overview
15.2.3.2 Product Portfolio
15.2.3.3 Demographic Reach and Achievements
15.2.3.4 Certifications
15.2.4 The Goldman Sachs Group, Inc.
15.2.4.1 Company Overview
15.2.4.2 Product Portfolio
15.2.4.3 Demographic Reach and Achievements
15.2.4.4 Certifications
15.2.5 LendingClub Bank, N.A.
15.2.5.1 Company Overview
15.2.5.2 Product Portfolio
15.2.5.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.6 Prosper Funding LLC.
15.2.6.1 Company Overview
15.2.6.2 Product Portfolio
15.2.6.3 Demographic Reach and Achievements
15.2.6.4 Certifications
15.2.7 SoFi Lending Corp.
15.2.7.1 Company Overview
15.2.7.2 Product Portfolio
15.2.7.3 Demographic Reach and Achievements
15.2.7.4 Certifications
15.2.8 Truist Financial Corporation
15.2.8.1 Company Overview
15.2.8.2 Product Portfolio
15.2.8.3 Demographic Reach and Achievements
15.2.8.4 Certifications
15.2.9 Wells Fargo & Company
15.2.9.1 Company Overview
15.2.9.2 Product Portfolio
15.2.9.3 Demographic Reach and Achievements
15.2.9.4 Certifications
15.2.10 Industrial and Commercial Bank of China Limited
15.2.10.1 Company Overview
15.2.10.2 Product Portfolio
15.2.10.3 Demographic Reach and Achievements
15.2.10.4 Certifications
15.2.11 Others
16 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Global Personal Loan Market: Key Industry Highlights, 2018 and 2032
2. Global Personal Loan Historical Market: Breakup by Type (USD Million), 2018-2023
3. Global Personal Loan Market Forecast: Breakup by Type (USD Million), 2024-2032
4. Global Personal Loan Historical Market: Breakup by Age (USD Million), 2018-2023
5. Global Personal Loan Market Forecast: Breakup by Age (USD Million), 2024-2032
6. Global Personal Loan Historical Market: Breakup by Marital Status (USD Million), 2018-2023
7. Global Personal Loan Market Forecast: Breakup by Marital Status (USD Million), 2024-2032
8. Global Personal Loan Historical Market: Breakup by Employment Status (USD Million), 2018-2023
9. Global Personal Loan Market Forecast: Breakup by Employment Status (USD Million), 2024-2032
10. Global Personal Loan Historical Market: Breakup by Region (USD Million), 2018-2023
11. Global Personal Loan Market Forecast: Breakup by Region (USD Million), 2024-2032
12. North America Personal Loan Historical Market: Breakup by Country (USD Million), 2018-2023
13. North America Personal Loan Market Forecast: Breakup by Country (USD Million), 2024-2032
14. Europe Personal Loan Historical Market: Breakup by Country (USD Million), 2018-2023
15. Europe Personal Loan Market Forecast: Breakup by Country (USD Million), 2024-2032
16. Asia Pacific Personal Loan Historical Market: Breakup by Country (USD Million), 2018-2023
17. Asia Pacific Personal Loan Market Forecast: Breakup by Country (USD Million), 2024-2032
18. Latin America Personal Loan Historical Market: Breakup by Country (USD Million), 2018-2023
19. Latin America Personal Loan Market Forecast: Breakup by Country (USD Million), 2024-2032
20. Middle East and Africa Personal Loan Historical Market: Breakup by Country (USD Million), 2018-2023
21. Middle East and Africa Personal Loan Market Forecast: Breakup by Country (USD Million), 2024-2032
22. Global Personal Loan Market Structure
The personal loan market indicates a promising growth rate at a CAGR of 32.20% in the forecast period of 2024 and 2032.
The advantages offered by personal loans, increasing requirement of money to fund lifestyle upgrades, and increasing accessibility of personal loans are major drivers of the market.
Key trends aiding market expansion include the technological advancements within market, adoption of digital technologies, rising expenditure on luxury goods, government initiatives promoting financial inclusion, and increasing immigration towards urban cities.
Regions considered in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
P2P marketplace lending and balance sheet lending are the different types of personal loans.
Less than 30 years, 30-50 years, and more than 50 years of age groups are considered in the market.
Based on marital status, the market is segmented into married and single.
A personal loan can be taken from an online lender, credit union, or a bank.
A personal loan is considered a good way of fulfilling short-term or long-term financial needs and an adequate amount of time is given for consolidation.
Key players in the market are American Express Company, Avant, LLC., DBS Bank Limited, The Goldman Sachs Group, Inc., LendingClub Bank, N.A., Prosper Funding LLC., SoFi Lending Corp., Truist Financial Corporation, Wells Fargo & Company, and Industrial and Commercial Bank of China Limited, among others.
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