Global Microfinance Market Growth (Status and Outlook) 2025-2031
Description
According to this study, the global Microfinance market size will reach US$ 83803 million by 2031.
Microfinance, also called microcredit, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services.
While institutions participating in the area of microfinance most often provide lending, many banks offer additional services such as checking and savings accounts as well as micro-insurance products, and some even provide financial and business education.
Key Trends and Innovations
Digitalization and Mobile Banking: Over 60% of microloans in Africa are disbursed via mobile apps (2023), reducing transaction costs by 40%.
Alternative Credit Scoring: Use of satellite data (for farmers), social media activity, and utility payment history to assess creditworthiness.
Green Microfinance: Loans for renewable energy (solar panels, biogas) and climate-resilient agriculture, aligning with ESG goals.
Islamic Microfinance: Sharia-compliant products in Muslim-majority countries (e.g., Malaysia, Pakistan), avoiding interest (riba) through profit-sharing models.
Challenges and Risks
Over-Indebtedness: High-interest rates (20–40% in some regions) and overlapping loans lead to default risks (e.g., the 2010 Andhra Pradesh microfinance crisis in India).
Regulatory Hurdles: Inconsistent regulations (e.g., licensing requirements in Nigeria vs. lenient rules in Kenya) and anti-usury laws.
Economic Volatility: Inflation (e.g., 2023 hyperinflation in Argentina) and currency devaluations impact repayment capabilities.
Operational Costs: High costs of serving remote areas, with 30–40% of loan amounts spent on administration in Africa.
Future Outlook
Growth Drivers:
Expansion of 5G and mobile penetration (projected to reach 70% in Sub-Saharan Africa by 2030).
Partnerships between MFIs and fintechs (e.g., Kiva + PayPal) to scale digital services.
Post-COVID recovery focusing on MSME resilience and rural employment.
LPI (LP Information)' newest research report, the “Microfinance Industry Forecast” looks at past sales and reviews total world Microfinance sales in 2024, providing a comprehensive analysis by region and market sector of projected Microfinance sales for 2025 through 2031. With Microfinance sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Microfinance industry.
This Insight Report provides a comprehensive analysis of the global Microfinance landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Microfinance portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Microfinance market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Microfinance and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Microfinance.
This report presents a comprehensive overview, market shares, and growth opportunities of Microfinance market by product type, application, key players and key regions and countries.
Segmentation by Type:
Below $3000
$3000-$10000
$10000-25000$
Above 25000$
Segmentation by Application:
Personal
SME
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
WeBank
ResponsAbility Investments AG
Utkarsh Micro Finance
Share Microfin
SKS Microfinance
Spandana Sphoorty Financial
Bhartiya Samruddhi Finance Limited（BSFL）
Ant Group Co
Baidu (Du Xiaoman)
Suning
Grameen America
LiftFund
Tencent Holdings Limited
Justine Petersen
Malayan Banking Berhad
GC Business Finance
DMI
Microfinance Ireland
JD
Meituan
ByteDance
Ujjivan
Please note: The report will take approximately 2 business days to prepare and deliver.
Microfinance, also called microcredit, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services.
While institutions participating in the area of microfinance most often provide lending, many banks offer additional services such as checking and savings accounts as well as micro-insurance products, and some even provide financial and business education.
Key Trends and Innovations
Digitalization and Mobile Banking: Over 60% of microloans in Africa are disbursed via mobile apps (2023), reducing transaction costs by 40%.
Alternative Credit Scoring: Use of satellite data (for farmers), social media activity, and utility payment history to assess creditworthiness.
Green Microfinance: Loans for renewable energy (solar panels, biogas) and climate-resilient agriculture, aligning with ESG goals.
Islamic Microfinance: Sharia-compliant products in Muslim-majority countries (e.g., Malaysia, Pakistan), avoiding interest (riba) through profit-sharing models.
Challenges and Risks
Over-Indebtedness: High-interest rates (20–40% in some regions) and overlapping loans lead to default risks (e.g., the 2010 Andhra Pradesh microfinance crisis in India).
Regulatory Hurdles: Inconsistent regulations (e.g., licensing requirements in Nigeria vs. lenient rules in Kenya) and anti-usury laws.
Economic Volatility: Inflation (e.g., 2023 hyperinflation in Argentina) and currency devaluations impact repayment capabilities.
Operational Costs: High costs of serving remote areas, with 30–40% of loan amounts spent on administration in Africa.
Future Outlook
Growth Drivers:
Expansion of 5G and mobile penetration (projected to reach 70% in Sub-Saharan Africa by 2030).
Partnerships between MFIs and fintechs (e.g., Kiva + PayPal) to scale digital services.
Post-COVID recovery focusing on MSME resilience and rural employment.
LPI (LP Information)' newest research report, the “Microfinance Industry Forecast” looks at past sales and reviews total world Microfinance sales in 2024, providing a comprehensive analysis by region and market sector of projected Microfinance sales for 2025 through 2031. With Microfinance sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Microfinance industry.
This Insight Report provides a comprehensive analysis of the global Microfinance landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyses the strategies of leading global companies with a focus on Microfinance portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Microfinance market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Microfinance and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Microfinance.
This report presents a comprehensive overview, market shares, and growth opportunities of Microfinance market by product type, application, key players and key regions and countries.
Segmentation by Type:
Below $3000
$3000-$10000
$10000-25000$
Above 25000$
Segmentation by Application:
Personal
SME
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
WeBank
ResponsAbility Investments AG
Utkarsh Micro Finance
Share Microfin
SKS Microfinance
Spandana Sphoorty Financial
Bhartiya Samruddhi Finance Limited（BSFL）
Ant Group Co
Baidu (Du Xiaoman)
Suning
Grameen America
LiftFund
Tencent Holdings Limited
Justine Petersen
Malayan Banking Berhad
GC Business Finance
DMI
Microfinance Ireland
JD
Meituan
ByteDance
Ujjivan
Please note: The report will take approximately 2 business days to prepare and deliver.
Table of Contents
147 Pages
- *This is a tentative TOC and the final deliverable is subject to change.*
- 1 Scope of the Report
- 2 Executive Summary
- 3 Microfinance Market Size by Player
- 4 Microfinance by Region
- 5 Americas
- 6 APAC
- 7 Europe
- 8 Middle East & Africa
- 9 Market Drivers, Challenges and Trends
- 10 Global Microfinance Market Forecast
- 11 Key Players Analysis
- 12 Research Findings and Conclusion
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
