United States Loan Market By Type (Secured Loan and Unsecured Loan), By Provider Type (Bank, Non-Banking Financial Companies and Others (Fintech Companies)), By Interest Rate (Fixed and Floating), By Tenure Period (Less than 5 Years, 5-10 Years, 11-20 Years, More than 20 Years), By Region, Competition, Forecast & Opportunities, 2028

Industry : BFSI
Pages : NA
Published Date : NA

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Summary

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Report Description

Forecast Period	2024-2028
Market Size (2022)	USD9,123 Billion
CAGR (2023-2028)	5.15%
Fastest Growing Segment	NBFCs
Largest Market	South Region

The United States Loan Market is anticipated to project robust growth in the forecast period because of the increasing number of potential loan buyers, low-interest rates, and growing demand from new business setups.

A loan is a sum of money that one or more people or businesses obtain from banks or other financial organizations to handle their finances in connection with anticipated or unforeseen circumstances. The borrower creates a debt that must be repaid with interest within a predetermined time frame. People, businesses, and governments are all eligible for loans. One borrows money primarily intending to increase their total available funds. For the lender, the interest and fees are a source of income.

Rise in home purchases during the COVID-19 pandemic and historically low-interest rates that have made refinancing attractive over the past two years, consumer demand for mortgages has increased dramatically in the United States. Banks, nonbank lenders, and mortgage sector investors will probably continue to experience robust demand from the purchase market even though a rate hike will slow refinance activity.

An Increasing Number of Potential Loan Buyers Will Lead to the Market Growth

The demand for loans over the historical period grew as consumer expenditure increased. Modifications in consumer spending patterns drove the lending market. The majority of Americans who acquire homes do so using mortgages. Approximately 1 in 5 home borrowers—about 36 million Americans—have used alternative financing such as a loan at least once in their adult lives. However, many people choose alternative financing strategies, such as rent-to-own, which, according to research, are typically riskier, more expensive, and subject to much lower consumer safeguards and increased regulation than conventional mortgages. Thus, strong economic growth in United States, rising internet usage, rising consumer expenditure, rising building activity, and rising auto loan all contribute to the loan market's growth.

Digitalization of Loan Services Will Boost the Market Growth

Banks and other financial institutions are implementing digitalization technologies to modernize their business in loan market. The US is one of the largest and most developed markets for digital loan-providing services globally due to its early adoption of digitization in various sectors. For instance, according to the Ipsos-Forbes Advisor U.S. Weekly Consumer Confidence Survey, most banked Americans (78%) prefer to conduct their banking digitally—via a mobile banking app or bank website. The key drivers of this change are the increased competition among banks and the rising demand for an efficient and speedy commercial loan procedure. Commercial loan approval, sometimes a complicated and drawn-out system, can now be completed more rapidly owing to digitization. For banks, digitalizing the loan process has many significant advantages, such as better decision-making, enhanced client satisfaction, and significant cost savings. As a result, the loan market operates more efficiently. It also allows banks to target new consumer segments and provide customer-centric solutions.

Lowest Interest Rates Will Fuel the Market Growth

Commercial lending has the lowest interest rates of all available loan types, allowing business owners to obtain crucial capital while keeping administrative costs to a minimum. Additionally, compared to other forms of unsecured borrowing, commercial financing often offers lower interest rates. For instance, The United States' lending interest rate (%) in 2021 was reported to be 3.25% by the World Bank's collection of development indicators, which was assembled from officially recognized sources. Borrowers can structure the financing for their business with more confidence if they choose to have set monthly repayments because they can accurately use them in their business planning and forecasting. Commercial lending payment plans typically last for many years, allowing a corporation to concentrate on other crucial business issues like sales, overseeing overhead, and employee training. Consequently, this is a significant market-driving element for business loans.

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Market Segmentation

The United States Loan Market is segmented based on type, provider type, interest rate, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into secured and unsecured loans. Based on provider type, the market is segmented into banks, non-banking financial companies, and others (fintech companies). Based on interest rates, the market is segmented into fixed and floating. The market is segmented based on the tenure period into less than five years, 5-10 years, 11-20 years, and more than 20 years. Based on region, the market is divided into South, West, Midwest, and Northeast.

Company Profiles

Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc., Wells Fargo & Co., U.S. Bancorp, PNC Financial Services Group, Inc., American Express Company, Ally Financial Inc., Truist Financial Corporation and Goldman Sachs & Co. LLC. are also actively entering the market in recent years and further strengthening the market growth.

Attribute	Details
Base Year	2022
Historical Years	2018–2021
Estimated Year	2023E
Forecast Period	2024F –2028F
Quantitative Units	Revenue in USD Million and CAGR for 2018-2022 and 2023E- 2028F
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Type Provider Type Interest Rate Tenure Period Company
Regional Scope	South, West, Midwest, and Northeast
Key Companies Profiled	Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc., Wells Fargo & Co., U.S. Bancorp, PNC Financial Services Group, Inc., American Express Company, Ally Financial Inc., Truist Financial Corporation and Goldman Sachs & Co. LLC.
Customization Scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

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

United States Loan Market, By Type:

Secured Loan
Unsecured Loan

United States Loan Market, By Provider Type:

Bank
Non-Banking Financial Companies
Others

United States Loan Market, By Interest Rate:

Fixed
Floating

United States Loan Market, By Tenure Period:

Less than 5 Years
5-10 Years
11-20 Years
More than 20 Years

United States Loan Market, By Region:

South
Midwest
Northeast
West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Loan Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Voice of Customer Analysis (B2C Market)

4.1. Brand Awareness

4.2. Factors Influencing Loan Availing Decision

4.3. Sources of Information

4.4. Challenges Faced

5. United States Loan Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type Market Share Analysis (Secured Loan and Unsecured Loan)

5.2.2. By Provider Type Market Share Analysis (Bank, Non-Banking Financial Companies and Others (Fintech Companies))

5.2.3. By Interest Rate Market Share Analysis (Fixed and Floating)

5.2.4. By Tenure Period Market Share Analysis (Less than 5 Years, 5-10 Years, 11-20 Years, More than 20 Years)

5.2.5. By Regional Market Share Analysis

5.2.5.1. South Market Share Analysis

5.2.5.2. Midwest Market Share Analysis

5.2.5.3. Northeast Market Share Analysis

5.2.5.4. West Market Share Analysis

5.2.6. By Top 5 Companies Market Share Analysis, Others (2022)

5.3. United States Loan Market Mapping & Opportunity Assessment

5.3.1. By Type Market Mapping & Opportunity Assessment

5.3.2. By Provider Type Market Mapping & Opportunity Assessment

5.3.3. By Interest Rate Market Mapping & Opportunity Assessment

5.3.4. By Tenure Period Market Mapping & Opportunity Assessment

5.3.5. By Regional Market Mapping & Opportunity Assessment

6. United States Secured Loan Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Product Type Market Share Analysis (Mortgage Loan, Housing Loan, Auto Loan and Others (Gold Loan, Life Insurance Loan etc.))

6.2.2. By Provider Type Market Share Analysis

6.2.3. By Interest Rate Market Share Analysis

6.2.4. By Tenure Period Market Share Analysis

7. Unites States Unsecured Loan Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Product Type Market Share Analysis (Personal Loan, Education Loan, Agricultural Loan and Others (Home Improvement Loan, Consumer Durable Loan etc.))

7.2.2. By Provider Type Market Share Analysis

7.2.3. By Interest Rate Market Share Analysis

7.2.4. By Tenure Period Market Share Analysis

8. Market Dynamics

8.1. Drivers

8.1.1. Low interest rates

8.1.2. Increasing digitalization

8.1.3. Increasing number of potential loan buyers

8.2. Challenges

8.2.1. Security concerns

8.2.2. Surging competition from NBFCs

9. Impact of COVID-19 on United States Loan Market

9.1. Impact Assessment Model

9.1.1. Key Segments Impacted

9.1.2. Key Regions Impacted

10. Market Trends & Developments

10.1. Increasing support of online portals

10.2. Rising focus towards loan sector by Bank and NBFCs

10.3. Increasing support from chatbots

10.4. Rapid urbanization

10.5. Attractive marketing strategies

11. Policy & Regulatory Landscape

12. United States Economic Profile

13. Competitive Landscape

13.1. Company Profiles

13.1.1. Bank of America Corporation

13.1.1.1. Company Details

13.1.1.2. Product & Services

13.1.1.3. Financials (As Reported)

13.1.1.4. Key market Focus & Geographical Presence

13.1.1.5. Recent Developments

13.1.1.6. Key Management Personnel

13.1.2. JPMorgan Chase & Co.

13.1.2.1. Company Details

13.1.2.2. Product & Services

13.1.2.3. Financials (As Reported)

13.1.2.4. Key market Focus & Geographical Presence

13.1.2.5. Recent Developments

13.1.2.6. Key Management Personnel

13.1.3. Citigroup, Inc.

13.1.3.1. Company Details

13.1.3.2. Product & Services

13.1.3.3. Financials (As Reported)

13.1.3.4. Key market Focus & Geographical Presence

13.1.3.5. Recent Developments

13.1.3.6. Key Management Personnel

13.1.4. Wells Fargo & Co.

13.1.4.1. Company Details

13.1.4.2. Product & Services

13.1.4.3. Financials (As Reported)

13.1.4.4. Key market Focus & Geographical Presence

13.1.4.5. Recent Developments

13.1.4.6. Key Management Personnel

13.1.5. U.S. Bancorp

13.1.5.1. Company Details

13.1.5.2. Product & Services

13.1.5.3. Financials (As Reported)

13.1.5.4. Key market Focus & Geographical Presence

13.1.5.5. Recent Developments

13.1.5.6. Key Management Personnel

13.1.6. PNC Financial Services Group, Inc.

13.1.6.1. Company Details

13.1.6.2. Product & Services

13.1.6.3. Financials (As Reported)

13.1.6.4. Key market Focus & Geographical Presence

13.1.6.5. Recent Developments

13.1.6.6. Key Management Personnel

13.1.7. American Express Company

13.1.7.1. Company Details

13.1.7.2. Product & Services

13.1.7.3. Financials (As Reported)

13.1.7.4. Key market Focus & Geographical Presence

13.1.7.5. Recent Developments

13.1.7.6. Key Management Personnel

13.1.8. Ally Financial Inc.

13.1.8.1. Company Details

13.1.8.2. Product & Services

13.1.8.3. Financials (As Reported)

13.1.8.4. Key market Focus & Geographical Presence

13.1.8.5. Recent Developments

13.1.8.6. Key Management Personnel

13.1.9. Truist Financial Corporation

13.1.9.1. Company Details

13.1.9.2. Product & Services

13.1.9.3. Financials (As Reported)

13.1.9.4. Key market Focus & Geographical Presence

13.1.9.5. Recent Developments

13.1.9.6. Key Management Personnel

13.1.10. Goldman Sachs & Co. LLC.

13.1.10.1. Company Details

13.1.10.2. Product & Services

13.1.10.3. Financials (As Reported)

13.1.10.4. Key market Focus & Geographical Presence

13.1.10.5. Recent Developments

13.1.10.6. Key Management Personnel

14. Strategic Recommendations/Action Plan

14.1. Key Focus Areas

14.2. Target Type

14.3. Target Provider Type

15. About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

What are the key factors driving the growth of the United States Loan Market?

The key factors driving the United States Loan Market growth are increasing digitization, rising preference for a loan among the young generation, and low-interest rates.

What is the lending rate in the US?

With 15673 observations between January 1980 and November 30, 2022, the US Bank Lending Rate data is updated daily. It averages 3.250% each year. The statistics peaked at 7.000% pa on November 30, 2022, and fell to a record low of 3.250% pa on March 16, 2022.

Why interest rate is low in the US?

In times of economic depression, the Federal Reserve reduces interest rates to encourage growth. That implies a decrease in the cost of borrowing. A low-interest rate environment is ideal for homeowners because it will lower their monthly mortgage payments.