Micro Lending Market Size grow with a CAGR of 10.1% during 2024-2036 and attain USD 581.4 Billion by 2036 » Electronicsmedia
Micro Lending Market Size grow with a CAGR of 10.1% during 2024-2036 and attain USD 581.4 Billion by 2036 Electronicsmedia
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Growing Income Inequality to drive Global Micro Lending
Research Nester assesses the growth and market size of global micro lending market which is anticipated to be on account of the growing number of SMEs and growing popularity of mobile banking.
Research Nester’s recent market research analysis on “Micro Lending Market: Global Demand Analysis & Opportunity Outlook 2036” delivers a detailed competitors analysis and a detailed overview of the global micro lending market in terms of market segmentation by provider, end-user and by region.
Growth Drivers:
- Rising Importance of Women Empowerment
- Growing Government Initiatives to Support Microfinance Institutions
Challenges:
The high default rates and the inconsistent regulatory frameworks across several regions are some of the major factors anticipated to hamper the global market size of micro lending. The lack of a documented credit history significantly hinders creditworthiness, which may result in higher default rates for microlenders.
Microfinance liability can be significantly influenced by the financial regulatory environment in a particular nation as it can create operational complexities for microfinance institutions.
Provider Segmentation
- Banks
- Microfinance institutes (MFIs)
- NBFCs (Non-banking Financial Institutions)
The microfinance institutes (MFIs) segment is set to garner the highest revenue by the end of 2036 by growing at a significant CAGR over the forecast period. Microfinance institutions (MFIs) give small loans to those people and groups who wouldn’t otherwise have access to financial services. Microfinance Institutions (MFIs) are becoming increasingly popular as a means of granting access to financial services, increasing financial inclusion, stability, and self-sufficiency over the years.
Additionally, Micro Finance Institution (NBFC-MFI) is a financial institution that gives financial credits to the underprivileged groups in society. Furthermore, banks are one of the largest sources of microfinance these days, assisting low-income employees and microentrepreneurs in achieving economic empowerment. Numerous banks provide term loans to a selected set of MFIs and collateral-free microloans to low-income people and/or families.
End-User Segmentation
The micro, small, and medium-sized enterprise segment will register substantial revenue. Microlending is viewed as a crucial tool for the growth of small firms, as they often need quicker access to capital to help them develop, expand, and succeed.
Regional Analysis
By region, the North America micro lending market is estimated to generate notable revenue by the end of 2036. This growth is anticipated by an increased rate of entrepreneurship among women. As per the World Economic Forum, in the U.S., women launched 49% of new firms in 2021, up from 28% in 2019. Particularly, in the U.S., there are currently over 9 million enterprises owned by women. Women who operate as micro and small business owners are becoming a more important target market for microfinance initiatives, as granting access to microfinance is a necessary step toward women’s empowerment.
Additionally, fintech companies are increasingly using artificial intelligence (AI) to improve a range of financial services in the area. Microfinance institutions employ artificial intelligence (AI) to automate loan approval processes and analyze massive data sets for patterns and anomalies.
Key Players
This report also provides the existing competitive scenario of some of the key players of the global micro lending market which includes company profiling of Accion International, ESAF Small Finance Bank, Ujjivan Small Finance Bank Ltd., Fincare Small Finance Bank Ltd., Fusion Micro Finance Ltd., Bajaj Finserv Ltd., Bandhan Bank Ltd., Bluevine Capital Inc., Equitas Small Finance Bank Ltd., ICICI Bank Ltd., and others.
Source: https://www.researchnester.com/reports/micro-lending-market/6295
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 5: Gender Equality
- SDG 8: Decent Work and Economic Growth
- SDG 10: Reduced Inequalities
- SDG 17: Partnerships for the Goals
The article discusses the issues of income inequality, financial inclusion, poverty alleviation, and women’s empowerment, which are all connected to the Sustainable Development Goals mentioned above.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance.
- SDG 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.
- SDG 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services.
- SDG 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
The targets mentioned above are relevant to the issues discussed in the article, such as equal access to financial services, women’s empowerment, support for microfinance institutions, and promoting inclusive economic growth.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. These indicators include:
- Number of individuals and small-scale entrepreneurs accessing micro lending services
- Amount of loans disbursed under government initiatives and schemes supporting micro lending
- Number of small and new entrepreneurs benefiting from micro lending schemes
- Rate of entrepreneurship among women
- Number of microfinance institutions (MFIs) providing small loans to underserved groups
- Number of women participating in decision-making in economic and public life
- Number of partnerships between governments, organizations, and microfinance institutions
These indicators can be used to measure progress towards the identified targets by tracking the data and monitoring the trends related to these indicators.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance. | – Number of individuals and small-scale entrepreneurs accessing micro lending services – Amount of loans disbursed under government initiatives and schemes supporting micro lending – Number of small and new entrepreneurs benefiting from micro lending schemes |
| SDG 5: Gender Equality | Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life. | – Rate of entrepreneurship among women – Number of women participating in decision-making in economic and public life |
| SDG 8: Decent Work and Economic Growth | Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services. | – Number of microfinance institutions (MFIs) providing small loans to underserved groups |
| SDG 10: Reduced Inequalities | Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status. | – Number of individuals and small-scale entrepreneurs accessing micro lending services |
| SDG 17: Partnerships for the Goals | Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. | – Number of partnerships between governments, organizations, and microfinance institutions |
Source: electronicsmedia.info
