India Personal Loan to Grow with a CAGR of 11.13% through 2030F

India Personal Loan Market is anticipated to grow during the forecast period due to the growing awareness & financial inclusion, flexibility & customization, and consolidation of debts.

According to TechSci Research report, “India Personal Loan Market – By Region, Forecast & Opportunities, 2030F”, the India Personal Loan Market was valued at USD 601.62 Billion in 2024 and is expected to reach USD 1129.25 Billion by 2030 with a CAGR of 11.13% during the forecast period. The Indian personal loan market has witnessed substantial growth in recent years, driven by increasing consumer demand for quick and accessible financing. Personal loans have become an essential financial tool for individuals seeking funds for various purposes, including home renovations, medical emergencies, debt consolidation, and education expenses. The rapid expansion of the digital economy, combined with the rise of fintech companies and improved financial literacy, has significantly contributed to the market's growth. Technological advancements, especially in digital lending platforms, have made it easier for borrowers to access funds quickly and efficiently, often with minimal documentation and quick approval processes.

One of the key factors contributing to the growth of the Indian personal loan market is the increasing penetration of digital platforms and mobile applications. Fintech companies and banks have streamlined the loan application process, making it easier for customers to apply for and receive funds within hours. The adoption of artificial intelligence (AI) and big data analytics has also played a crucial role in improving credit assessment processes and minimizing risks for lenders. Additionally, the increasing use of mobile wallets and online banking has facilitated smoother loan disbursements and repayments, enhancing the overall customer experience.

The growing middle-class population and rising disposable incomes have also fueled the demand for personal loans. As more people seek to improve their lifestyles and meet personal expenses, the need for quick and flexible financing solutions has risen. Moreover, the increasing awareness of credit products and improved financial literacy have encouraged individuals to explore various loan options, driving market expansion. Banks and non-banking financial companies (NBFCs) have responded to this demand by offering tailored personal loan products with competitive interest rates and flexible repayment options.

The rise of fintech lenders has emerged as a major trend in the Indian personal loan market. Fintech startups have disrupted the traditional lending space by offering quick approvals, minimal documentation, and flexible repayment structures. The use of alternative data sources for credit assessment has allowed fintech companies to cater to a broader customer base, including those with limited credit histories. Furthermore, partnerships between banks and fintech firms have enhanced the availability of personal loans and improved customer reach, contributing to the overall growth of the market.

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on "India Personal Loan Market” 

The India Personal Loan Market is segmented into provider, tenure, interest rate, and region.

Based on provider, Non-Banking Financial Companies (NBFCs) are the fastest-growing segment in the Indian personal loan market due to their quick processing, flexible terms, and minimal documentation. NBFCs use alternative credit scoring models to serve a broader customer base, including individuals with low credit scores. Their ability to provide customized loan products, competitive interest rates, and faster disbursements has made them popular among borrowers. Additionally, fintech-backed NBFCs leverage technology to streamline loan applications, enhancing customer experience and boosting market growth.

Based on region, West region is emerging as the fastest-growing segment in the Indian personal loan market due to rising urbanization, increasing disposable income, and greater financial awareness. Cities like Mumbai and Pune have become financial hubs, driving higher demand for personal loans. The growing presence of financial institutions and fintech companies offering quick and customized loan solutions is fueling market growth in the region. Additionally, improved digital infrastructure and higher penetration of online lending platforms are further contributing to the rapid expansion of personal loans in the West region.

Major companies operating in India Personal Loan Market are:

• IDFC FIRST Bank Limited
• HDFC Bank Limited
• ICICI Bank Limited
• Axis Bank Limited
• Kotak Mahindra Bank Limited
• Navi Technologies Limited
• Lendingkart Finance Limited
• Whizdm Innovations Private Limited (Moneyview)
• One97 Communications Limited (Paytm)
• Bajaj Finserv Ltd

Download Free Sample Report

Customers can also request for 10% free customization in this report.

“The India Personal Loan Market is expected to continue its upward trajectory, supported by ongoing technological advancements and increasing consumer demand. The growing adoption of digital lending platforms, coupled with the expansion of financial services in underserved regions, is likely to drive further growth. Regulatory support and government initiatives aimed at promoting financial inclusion will also play a key role in shaping the future of the personal loan market in India. As competition among lenders intensifies, offering innovative products, flexible repayment terms, and enhanced customer service will be critical for maintaining a competitive edge in the market.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Personal Loan Market By Provider (Bank, Non-Banking Financial Company (NBFC)), By Tenure (Less than 12 Months, 12-36 Months, More Than 36 Months), By Interest Rate (10%-15%; 16%-20%; Above 20%), By Region, Competition Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Personal Loan Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Personal Loan Market.

Contact Us-

TechSci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: sales@techsciresearch.com

Website: www.techsciresearch.com