Consumer Durable Loans Market Report 2025

The consumer durable loans market size has grown strongly in recent years. It will grow from $10.02 billion in 2024 to $10.54 billion in 2025 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to the growing demand for consumer durables, rising disposable income, growing urbanization, increasing government support and policies, and the growing popularity of online shopping.

The consumer durable loans market size is expected to see strong growth in the next few years. It will grow to $13.2 billion in 2029 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to rising digitalization and fintech adoption, rising credit awareness, rising demand for instant financing options, increasing demand for unsecured loans, and increasing use of buy now, pay later (BNPL) services. Major trends in the forecast period include developing flexible repayment plans, integration of open banking APIs, integration of blockchain for loan processing, technology-powered digital lending, and developing biometric authentication.

The forecast of 5.8% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through higher interest rates for appliance and electronics financing, as loan underwriting platforms and point-of-sale integration systems, primarily sourced from India and Canada, become more expensive to license and maintain. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing adoption of smart home technology is expected to drive the growth of the consumer durable loans market. Smart home technology involves integrating internet-connected devices and systems within a home that can be remotely controlled or automated to enhance convenience, security, and energy efficiency. This rise is primarily driven by the increasing demand for convenience, as consumers seek automated solutions to simplify daily tasks and improve comfort, efficiency, and control over home functions. Consumer durable loans play a crucial role in accelerating the adoption of smart home technology by providing affordable financing options, making high-tech home solutions more accessible to a broader range of consumers. For example, in July 2023, Statistics Canada reported that the adoption of internet-connected smart home devices reached 47% in 2022, with smart speakers being the most widely used device at 30%. Therefore, the increasing adoption of smart home technology is contributing significantly to the growth of the consumer durable loans market.

Major companies in the consumer durable loans market are leveraging strategic partnerships to develop innovative financing solutions aimed at enhancing customer affordability and expanding market reach. These partnerships allow lenders and retailers to combine their financial and technological capabilities to offer flexible financing solutions, streamline loan processing, and improve customer acquisition. For example, in May 2024, National Finance, an Oman-based finance company, partnered with Abraj Muscat Electronics, an Omani retailer of home appliances and electronics, to offer financing options for a range of products. This collaboration provides hassle-free financing solutions for products such as electronics, household appliances, air conditioners, and other household items. The financing options are designed to be customer-centric, with simplified processes, expedited approvals, and flexible repayment schedules to enhance affordability and convenience for customers.

In February 2025, TVS Holdings Ltd., an India-based automotive components company, acquired an 80.74% equity stake in Home Credit India for $67 million. With this acquisition, TVS Holdings aims to strengthen its financial services division, accelerate growth, expand its lending portfolio, enhance financial inclusion, and leverage synergies in collections, cost efficiencies, and digital capabilities. Home Credit India Finance Pvt. Ltd. is an Indian consumer finance company specializing in durable consumer loans.

Major players in the consumer durable loans market are State Bank of India, DBS Bank Ltd, Bajaj Finserv Limited, Axis Bank Limited, Kotak Mahindra Bank Limited., Santander Consumer Finance S.A., IndusInd Bank Ltd., Tata Capital Limited, IDFC First Bank Ltd., Indian Overseas Bank, HDB Financial Services Ltd, The Federal Bank Limited, Mahindra and Mahindra Financial Services Limited, TVS Credit Services Limited, Hero Fincorp, Poonawalla Fincorp Ltd., Lentra AI Private Limited, Gujarat State Co-Operative Bank Ltd., Pune District Central Cooperative Bank, LuLu Financial Services.

North America was the largest region in the consumer durable loans market in 2024. The regions covered in consumer durable loans report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the consumer durable loans market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The consumer durable loans market includes revenues earned by entities by providing services such as point-of-sale financing, appliance financing, electronics installment loans, furniture financing, and retail store credit. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Consumer durable loans are financing options provided to individuals for purchasing long-lasting household items such as electronics, appliances, and furniture. These loans enable consumers to acquire high-value goods by paying in installments over a set period, often with little or no interest, making essential and lifestyle products more affordable and accessible.

The primary types of consumer durable loans include personal loans, home equity loans, auto loans, and credit card loans. A personal loan is an unsecured loan that individuals borrow from financial institutions such as banks or online lenders for personal expenses, such as medical bills, home renovations, or debt consolidation. These loans can feature various interest rate structures, including fixed-rate loans, variable-rate loans, and subsidized loans. Depending on the loan term, they are categorized as short-term loans (less than 2 years), medium-term loans (2-5 years), and long-term loans (more than 5 years).

The consumer durable loans market research report is one of a series of new reports that provides consumer durable loans market statistics, including consumer durable loans industry global market size, regional shares, competitors with a consumer durable loans market share, detailed consumer durable loans market segments, market trends and opportunities, and any further data you may need to thrive in the consumer durable loans industry. The consumer durable loans market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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