Personal Loans

Global Personal Loans Market to Reach US$1.7 Trillion by 2030

The global market for Personal Loans estimated at US$764.2 Billion in the year 2024, is expected to reach US$1.7 Trillion by 2030, growing at a CAGR of 14.7% over the analysis period 2024-2030. P2P Marketplace Lending, one of the segments analyzed in the report, is expected to record a 16.2% CAGR and reach US$1.2 Trillion by the end of the analysis period. Growth in the Balance Sheet Lending segment is estimated at 12.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$208.2 Billion While China is Forecast to Grow at 19.8% CAGR

The Personal Loans market in the U.S. is estimated at US$208.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$380.0 Billion by the year 2030 trailing a CAGR of 19.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.7% and 13.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.7% CAGR.

Global Personal Loans Market - Key Trends & Drivers Summarized

Why Are Personal Loans an Increasingly Preferred Form of Consumer Credit?

Personal loans offer individuals unsecured access to credit for a range of purposes including medical expenses, home renovations, education, and debt consolidation. Unlike credit cards, they come with fixed interest rates and structured repayment schedules, making them a predictable and often more affordable financing option. Their flexibility and lack of collateral requirements appeal to both salaried and self-employed borrowers.

As consumer financial needs diversify, personal loans are emerging as a mainstream borrowing tool. Digitization of loan origination, simplified documentation, and pre-approved offers are further driving convenience and adoption. Younger consumers, particularly those establishing credit histories, are contributing to rising demand for small-ticket personal loans for lifestyle and emergency expenses.

How Are Lending Platforms and Credit Assessment Models Evolving?

Traditional banks, non-banking financial companies (NBFCs), and fintech firms are all actively offering personal loans. Fintech lenders are leveraging artificial intelligence, alternative credit scoring, and digital KYC processes to offer faster disbursement and customized loan products. Peer-to-peer lending platforms are gaining ground by facilitating credit access to underserved or thin-file consumers.

Lenders are increasingly integrating data from utility bills, e-commerce spending, and mobile usage into credit evaluation models. This shift is improving credit penetration among gig economy workers and informal sector borrowers. Real-time loan approval, instant disbursal, and flexible repayment features are setting new expectations in personal loan delivery.

Where Is Market Expansion Most Evident and Which Borrowers Are Driving Demand?

Emerging markets in Asia-Pacific, Latin America, and parts of Africa are experiencing strong growth in personal loans due to rising middle-class aspirations, digital banking adoption, and improved financial inclusion. Urban borrowers dominate demand, particularly those seeking short-term credit for education, weddings, or home appliances.

Millennials and Gen Z borrowers are major contributors to market expansion, driven by mobile-first behavior and comfort with digital financial products. In high-income economies, demand is shifting towards consolidation of credit card debt, medical financing, and elective spending. The rise of buy-now-pay-later services is also influencing personal loan structures and borrower expectations.

Growth in the Personal Loans market is Driven By Several Factors…

Growth in the personal loans market is driven by increased consumer awareness of unsecured credit options, digital transformation in lending processes, and expansion of credit access to underserved segments. Fintech innovations in application processing, underwriting, and customer engagement are accelerating disbursement cycles and enhancing borrower experience.

Wider smartphone penetration, demand for instant credit, and favorable regulatory reforms supporting digital lending ecosystems are further boosting growth. As household financial planning becomes more structured, personal loans are being integrated into broader financial wellness strategies, supporting their continued relevance and adoption across income brackets and regions.

SCOPE OF STUDY:

The report analyzes the Personal Loans market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (P2P Marketplace Lending, Balance Sheet Lending); Application (Short-Term Loans Application, Medium-Term Loans Application, Long-Term Loans Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 43 Featured) -

• Avant
• Barclays
• Best Egg
• Capital One
• Citibank
• Discover Financial Services
• Earnest
• FreedomPlus
• HDFC Bank
• HSBC Holdings
• LendingClub
• LightStream (Truist)
• Marcus by Goldman Sachs
• MoneyTap
• OneMain Financial
• OppLoans
• Prosper Marketplace
• Rocket Loans
• SoFi
• Upstart

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