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Marketplace Lending (Consumer) - India

India

Total transaction value in the MarketMarketplace Lending (Consumer) market market in India is forecasted to reach US$0.8bn in 2024.
When compared globally, the highest transaction value is projected to be achieved the United States (US$26,720m in 2024).
The Key Market Indicators offer a glimpse into the social and economic landscape of India, shedding light on market-specific trends.
These indicators, combined with information from statistical offices, trade associations, and businesses, form the basis for the Statista market models.
India's consumer marketplace lending sector is experiencing rapid growth, attracting diverse capital raising opportunities in the financial market.

Key regions: Singapore, United States, Israel, United Kingdom, Australia

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Analyst Opinion

The Marketplace Lending (Consumer) market in India is experiencing significant growth and development.

Customer preferences: Indian consumers are increasingly turning to marketplace lending platforms as an alternative to traditional banks for their borrowing needs. This is driven by several factors, including the convenience and efficiency of online lending platforms, as well as the ability to access credit quickly and easily. Additionally, marketplace lending platforms often offer more competitive interest rates compared to traditional banks, making them an attractive option for borrowers.

Trends in the market: One of the key trends in the Indian marketplace lending market is the rise of peer-to-peer (P2P) lending platforms. These platforms connect individual lenders with borrowers, allowing for direct lending without the need for intermediaries such as banks. P2P lending has gained popularity in India due to its ability to provide credit to underserved segments of the population, such as small business owners and individuals with limited credit history. Another trend in the Indian marketplace lending market is the increasing focus on financial inclusion. Many marketplace lending platforms in India are specifically targeting underserved segments of the population, such as low-income individuals and those living in rural areas. These platforms aim to provide access to credit to individuals who may not have been able to obtain loans from traditional banks.

Local special circumstances: India has a large unbanked population, with millions of individuals lacking access to formal financial services. This presents a significant opportunity for marketplace lending platforms to fill this gap and provide financial services to those who have been excluded from the traditional banking system. Additionally, the Indian government has been supportive of the growth of marketplace lending, introducing regulations to promote transparency and protect the interests of borrowers and lenders.

Underlying macroeconomic factors: India's growing middle class and rising disposable incomes are driving the demand for credit, creating a favorable environment for marketplace lending platforms. Additionally, the increasing penetration of smartphones and internet connectivity in India is enabling more individuals to access online lending platforms. The government's push for digitalization and financial inclusion is also contributing to the growth of marketplace lending in the country. In conclusion, the Marketplace Lending (Consumer) market in India is experiencing rapid growth and development, driven by customer preferences for convenience and competitive interest rates. The rise of P2P lending platforms and the focus on financial inclusion are key trends in the market. India's large unbanked population, growing middle class, and government support for digitalization and financial inclusion are underlying macroeconomic factors that are fueling the growth of marketplace lending in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.