According to the publisher, the alternative lending market in the country is expected to grow by 37.1% on an annual basis to reach US$ 8.83 billion in 2023.
Medium to long term growth story of alternative lending in India remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 20.5% during 2023-2027. The alternative lending market in the country will increase from US$ 6.44 billion in 2022 to reach US$ 18.61 billion by 2027.
The alternative lending segment is poised to record strong growth in India over the next five years. Factors including an expanded economy and rising interest rates are projected to aid the growth of the market. The difficulties in accessing credit through conventional channels is also one of the major growth drivers for the alternative lending sector in India. According to a report from Inc42, the digital lending segment is expected to reach US$1.3 trillion by 2030.
Amid the surging demand for online loans, players in the segment are recording strong growth in customer acquisition. Digital lender axio, for instance, is adding 10,000 new customers every day. As of January 2023, the firm had amassed a total of more than 6 million users on its platform. With consumer disposable income expected to further decline amid the current macroeconomic environment, the publisher expects alternative lending providers to keep recording strong growth in terms of customer acquisition in 2023.
Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Medium to long term growth story of alternative lending in India remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 20.5% during 2023-2027. The alternative lending market in the country will increase from US$ 6.44 billion in 2022 to reach US$ 18.61 billion by 2027.
The alternative lending segment is poised to record strong growth in India over the next five years. Factors including an expanded economy and rising interest rates are projected to aid the growth of the market. The difficulties in accessing credit through conventional channels is also one of the major growth drivers for the alternative lending sector in India. According to a report from Inc42, the digital lending segment is expected to reach US$1.3 trillion by 2030.
Amid the surging demand for online loans, players in the segment are recording strong growth in customer acquisition. Digital lender axio, for instance, is adding 10,000 new customers every day. As of January 2023, the firm had amassed a total of more than 6 million users on its platform. With consumer disposable income expected to further decline amid the current macroeconomic environment, the publisher expects alternative lending providers to keep recording strong growth in terms of customer acquisition in 2023.
Millennials and borrowers from Tier I and II cities are driving the growth of the alternative lending market in India
The alternative lending market has emerged as one of the fastest-growing fintech sectors in India in 2023. This demand for online loans has been primarily led by millennials and borrowers in Tier I and II cities.- According to a report by neo-banking platform Freo, millennials are leading the charge when it comes to availing online loans for product purchases. The consumer demographic accounts for 44% of the total transactions when it comes to alternative lending. Gen Z, on the other hand, accounts for 33% of the total transactions.
- Another report by Home Credit India revealed more than a third of the total borrowers in the country are coming from Tier I and II cities. The preference for small ticket loans is expected to further grow among consumers in Tier I and II cities, thereby supporting the industry growth over the next five years.
Alternative lending firms are expanding their presence in the fast-growing finance space through acquisition deals
The demand for credit is growing across different industry verticals in 2023 and the trend is projected to further continue over the next five years. To capitalize on the projected growth, firms are expected to expand their presence in the alternative lending space through acquisition deals.- In March 2023, LoanTap, the digital lending platform, announced that the firm had entered into an acquisition deal with Unofin, the healthcare-focused fintech startup. The acquisition is part of the firm's strategy to expand its presence in the healthcare finance sector. The acquisition will also boost the gross loan disbursal for LoanTap over the next few years.
- As of March 2023, Unofin has serviced more than 120,000 customers with INR 1200 million of gross loan disbursal. Operating in seven cities in India, Unofin has forged alliances with 1,600 healthcare service providers. With a large percentage of the Indian population lacking insurance, healthcare financing is projected to become a multi-billion-dollar market over the next few years. Consequently, expansion into the healthcare financing space is projected to accelerate the growth of Loan Tap over the next five years.
Firms are raising venture capital and private equity funding to fulfill the growing credit demand in India
The demand for credit has been on the surge amid MSMEs as well as retail customers. Rising inflation and interest rate environment mean that more businesses and consumers will turn to alternative lending products to meet their requirements. Consequently, to fulfill the growing credit demand, firms are raising venture capital and private equity funding in India.- In March 2023, Mintifi, the B2B-focused digital lending platform, announced that the firm had raised US$110 million in its Series D funding round, which was led by Premji Invest. Norwest Venture Partners, International Finance Corporation, and Elevation Capital have also participated in the financing round. In addition to expanding its product range, the firm is planning to infuse capital for scaling the B2B payment vertical and dealer management system.
- LoanTap Financial Technologies Pvt Ltd (LoanTap), in February 2023, announced that the firm had raised INR 240 million in venture debt, which was led by Lighthouse Canton. The firm is planning to use the venture debt to support the growth objectives of the firm.
Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in India through 127 tables and 150 charts. Below is a summary of key market segments:India Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
India Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
India Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
India Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
India Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
India Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
India Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
India Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Reasons to buy
This report offers a comprehensive insight into the alternative lending market in India, covering the following key areas:- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in India, providing a deep dive into its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion, based on the payment instruments, finance models, and loan types covered in the report.
- Economic Indicators: Access to India's economic indicators, including GDP, unbanked population, unemployment rate, and loan default rate, to empower your business with crucial data for market analysis and strategic planning.
- Industry Attractiveness Analysis: In-depth trend analyses for transaction value, average value, and transaction volume within the India alternative lending sector. This information aids in assessing the industry's appeal and potential for growth.
- Strategic Segmentation Analysis: The report presents an extensive analysis of market segments based on financial models (P2P marketplace lending, balance sheet lending, invoice trading, debt-based securities, equity-based crowdfunding, real estate crowdfunding, and others), payment methods (cash, cheques, credit transfers, direct debits, debit cards, credit cards, and e-money) and end-users (consumers, businesses, and property).
- Growth Projections: The report contains future growth projections for the India alternative lending market, classified by end-user, financial model, and payment instrument. These projections offer insights into areas with growth potential within various market segments, aiding your company in strategy alignment and informed decision-making.
- Loan Type Analysis: A thorough examination of loan types, including B2C Loans (Personal Loans, Payroll Advances, Home Improvement, Education/Student Loans, Point of Sale, Auto Loans, Medical Loans) and B2B Loans (Lines of Credit, Merchant Cash Advance, Invoice Factoring, Revenue Financing), offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Get a closer look at consumer behaviour and attitude, segmented by age, income, and gender, which can aid in developing targeted marketing and lending strategies.
Table of Contents
1. About this Report
2. India Economic Indicators
3. India Alternative Lending Industry Attractiveness
4. India Alternative Lending Market Size and Forecast by End User
5. India Alternative Lending Market Size and Forecast by Finance Models
6. India Alternative Lending Market Size and Forecast by Payment Instrument
7. India Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. India Alternative Lending Market Size and Forecast by Loan Types
9. India Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 164 |
| Published | October 2023 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value ( USD | $ 8.8 Billion |
| Forecasted Market Value ( USD | $ 18.6 Billion |
| Compound Annual Growth Rate | 20.5% |
| Regions Covered | India |
