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India Personal Loan Market by Source (Bank & Non-Banking Financial Company (NBFC)), by Tenure (Less than 1 Year; 2-3 Year; & 4-5 Years), by Purpose (Home Improvement; Wedding; Travel; & Others), by Interest Rate (10%-15% & 16%-20%), Competition, Forecast & Opportunities, 2025

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  • June 2020
  • Region: India
  • TechSci Research
  • ID: 5105810
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The Indian Personal Loan Market is expected to grow at a formidable rate of around 10% during the forecast period. A personal loan is a loan that does not require collateral or security and is offered with minimal documentation. A personal loan is borrowed from a bank, credit union or online lender that you pay back in fixed monthly payments, or installments, typically over two to five years. There are two types of personal loans: secured and unsecured loans. A secured personal loan requires some type of collateral whereas the unsecured loans, do not require any collateral. Unsecured personal loans can be used for a wide range of application such as paying for a wedding, making home improvements, consolidating debt, paying medical bills, among others.

The increasing gap income and expenditure coupled with rising aspirations, especially among the young population are the key factors driving the Indian Personal Loan Market. Additionally, the size of personal loans is much smaller and easy to access which is further propelling the market. Further, digitisation has resulted in lowering costs, which is anticipated to positively influence the market in the coming years.

The Indian Personal Loan Market is segmented based on source, tenure, purpose, interest rate, company and region. Based on source, the market can be bifurcated into bank and non-banking financial company (NBFC). Banks are expected to dominate the market during forecast period since the penetration of banks is far more than any other credit union in the country. Further, if an already existing bank customer applies for a personal loan in that bank, he/she gets some additional benefits and services. Based on purpose, the market can be fragmented into home improvement, wedding, travel and others. The wedding segment is expected to dominate the market since the Indian population is usually opting for personal loans when its either their own marriage or some close relative’s.

The major players operating in the Indian Personal Loan Market are IDFC First Bank, HDFC Bank, ICICI Bank, TATA Capital, Kotak Mahindra Bank, IndusInd Bank, Fullerton India, Bajaj FinServ, SBI Bank and others.

Years considered for this report:
  • Historical Years: 2015-2018
  • Base Year: 2019
  • Estimated Year: 2020
  • Forecast Period: 2021–2025

Objective of the Study:
  • To analyze and forecast the market size of the Indian Personal Loan Market.
  • To classify and forecast the Indian Personal Loan Market based on source, tenure, purpose, interest rate, company and regional distribution.
  • To identify drivers and challenges for the Indian Personal Loan Market.
  • To identify and analyze the profile of leading players operating in the Indian Personal Loan Market.

The author performed both primary as well as exhaustive secondary research for this study. Initially, the author sourced a list of companies across the country. Subsequently, researchers conducted primary research surveys with the identified companies. While interviewing, the respondents were also enquired about their competitors. Through this technique, the author could include the companies which could not be identified due to the limitations of secondary research. The author analyzed the companies and presence of all major players across the country.

The author calculated the market size of the Indian Personal Loan Market by using a bottom-up approach, wherein the data for various end-user segments was recorded and forecast for the future years. Researchers sourced these values from the industry experts and company representatives and externally validated through analyzing historical data of these product types and applications for getting an appropriate, overall market size. Various secondary sources such as company websites, news articles, press releases, company annual reports, investor presentations and financial reports were also studied.

Key Target Audience:
  • Personal loan providers
  • Market research and consulting firms
  • Government bodies such as regulating authorities and policy makers
  • Organizations, forums and alliances related to personal loan

The study is useful in providing answers to several critical questions that are important for the industry stakeholders such as manufacturers, suppliers and partners, end-users, etc., besides allowing them in strategizing investments and capitalizing on the market opportunities.

Report Scope:
In this report, the Indian Personal Loan Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

India Personal Loan Market, By Source:
  • Bank
  • Non-Banking Financial Company (NBFC)

India Personal Loan Market, By Tenure:
  • Less than 1 Year
  • 2-3 Year
  • 4-5 Years

India Personal Loan Market, By Purpose:
  • Home Improvement
  • Wedding
  • Travel
  • Others

India Personal Loan Market, By Interest Rate:
  • 10%-15%
  • 16%-20%

India Personal Loan Market, By Regions:
  • North
  • South
  • East
  • West

Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Indian Personal Loan Market.

Available Customizations:
With the given market data, the author offers customizations according to a client’s specific needs.
This report is 80% complete and can be delivered within three working days post order confirmation and will include the latest impact analysis of Covid-19 in 2020 and forecast.

Please note: With the Enterprise license, the PDF product is printable and editable and comes with a market data excel sheet.

Table of Contents

1. Product Overview2. Research Methodology3. Impact of COVID-19 on India Personal Loan Market4. Executive Summary5. Voice of Customer
6. India Personal Loan Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Source (Bank; Non-Banking Financial Company (NBFC))
6.2.2. By Tenure (Less than 1 Year; 2-3 Year; 4-5 Years)
6.2.3. By Purpose (Home Improvement; Wedding; Travel; Others)
6.2.4. By Interest Rate (10%-15%; 16%-20%)
6.2.5. By Region (North, South, East, West)
6.2.6. By Company (2018)
6.3. Market Attractiveness Index
7. North India Personal Loan Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Source
7.2.2. By Tenure
8. West India Personal Loan Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Source
8.2.2. By Tenure
9. South India Personal Loan Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Source
9.2.2. By Tenure
10. East India Personal Loan Market Outlook
10.1. Market Size & Forecast
10.1.1. By Value
10.2. Market Share & Forecast
10.2.1. By Source
10.2.2. By Tenure
11. Market Dynamics
11.1. Drivers
11.2. Challenges
12. Market Trends & Developments13. Policy & Regulatory Landscape14. India Economic Profile
15. Competitive Landscape
15.1. Company Profile
15.1.1. Company Detail
15.1.2. Service Charges & Fees
15.1.3. Documentation Required for Loan
15.1.4. Terms & Conditions of Loan
15.2. IDFC First Bank
15.3. HDFC Bank
15.4. ICICI Bank
15.5. TATA Capital
15.6. Kotak Mahindra Bank
15.7. IndusInd Bank
15.8. Fullerton India
15.9. Bajaj FinServ
15.10. SBI Bank
16. Strategic Recommendations17. About the Author & Disclaimer

Companies Mentioned

A selection of companies mentioned in this report includes:

  • IDFC First Bank
  • HDFC Bank
  • ICICI Bank
  • TATA Capital
  • Kotak Mahindra Bank
  • IndusInd Bank
  • Fullerton India
  • Bajaj FinServ
  • SBI Bank