Global Microfinance Market
Global Microfinance Market By Tenure (Less than 1 Year, 1-2 Years, More than 2 Years), By Purpose (Agriculture, Manufacturing/ Production, Trade & Services, Household, Others), By Provider Type (Banks, Microfinance Institute, Non-banking Financial Corporation, Others) And By Geography – Covid-19 Impact Analysis, Post Covid Analysis, Opportunities, Trends And Forecast From 2021 to 2034
The global Microfinance market was valued at $251.63 Billion in 2023 and is anticipated to grow at a CAGR of 11.46% from 2024 to 2034. This growth is attributed to several macro and microeconomic factors such as
Growth of Microenterprises
The growth of microenterprises serves as a pivotal driving force within the microfinance market, exerting a profound impact on both economic and social landscapes. Microenterprises, typically small-scale ventures operated by individuals or small teams, are often situated in low-income communities or developing regions. As these enterprises expand, they generate a heightened demand for financial services, including credit, savings, insurance, and payment mechanisms. Microfinance institutions (MFIs) respond to this demand by offering tailored financial products and services, thus facilitating the growth trajectory of microenterprises. Moreover, the proliferation of microenterprises expands the client base of MFIs, fostering greater outreach and sustainability within the microfinance market. This growth not only generates employment opportunities but also plays a pivotal role in poverty reduction and economic development. By providing access to financial resources, microfinance enables entrepreneurs to invest in their businesses, create jobs, and elevate their living standards. Additionally, microfinance institutions often provide training, mentorship, and support services, nurturing entrepreneurship and fostering innovation within communities. The social impact of microenterprise growth extends beyond economic development, contributing to empowerment and inclusion. Microfinance serves as a catalyst for women and marginalized groups, offering avenues for economic independence and empowerment. Furthermore, thriving microenterprises can drive community development initiatives, enhancing access to essential services such as education and healthcare. In summary, the growth of microenterprises underscores the integral role of microfinance in fostering inclusive and sustainable development, facilitating economic growth, and promoting positive social change.
Further several factors restraining the market growth include
High cost associated with Microfinance
The high cost of microfinance stands as a formidable obstacle within the microfinance market, exerting considerable influence on both microfinance institutions (MFIs) and their clientele. This cost encompasses various facets, including operational expenditures, interest rates, and transaction fees, among others. Firstly, it restricts access to financial services for the very individuals microfinance aims to assist—the impoverished and financially marginalized—due to exorbitant interest rates and fees that render borrowing unaffordable for many microentrepreneurs. Consequently, a significant portion of the target demographic remains excluded from formal financial channels, perpetuating economic disparity. Secondly, the financial sustainability of MFIs is compromised by the need to cover substantial operational and risk-related expenses, often necessitating high interest rates to offset potential losses. Balancing financial viability with client affordability becomes challenging, especially given regulatory compliance costs. Additionally, the risk of over-indebtedness looms large, as clients struggle to repay loans amidst high borrowing costs, potentially leading to systemic instability. Thirdly, the adverse impact on client welfare is palpable, with excessive interest rates and fees impeding business growth and exacerbating poverty among already vulnerable populations. Moreover, the market distortions and lack of competition resulting from exorbitant costs further compound the affordability and accessibility challenges faced by microfinance clients. Addressing these complexities demands a holistic approach focused on reducing costs, enhancing efficiency, and fostering responsible lending practices to unleash the transformative potential of microfinance in fostering inclusive and sustainable development.
Rapid technological advancements and collaborations and alliances in the Microfinance market are expected to generate higher avenues during the forecast period.
In the wake of the COVID-19 pandemic, supply chain disruptions have led to supply shortages or lower demand in the Microfinance market. The pandemic has caused a decline in new orders and a corresponding decrease in Purposeion.
This section will analyze how COVID-19 has impacted supply chains, leading to shortages and lower demand for Microfinance.
In terms of COVID-19 impact, the Microfinance market report also includes the following data points:
Impact on Microfinance market size
Operating Weights Trend, Preferences, and Budget Impact
Regulatory Framework/Outdoor Policies
Key Players' Strategy to Tackle Negative Impact/Post-COVID Strategies
Opportunity in the Microfinance market
Key Insight in the report:
The global Microfinance market report covers an executive summary, market dynamics, COVID impact & post-COVID scenario, market size and forecast, competitive intelligence, market positioning, and Purposes.
Our report covers extensive competitive intelligence which includes the following data points:
Business Overview
Business Segment Data
Financial Data
Purpose Segment Analysis and Specification
Recent Development and Company Strategy Analysis
SWOT Analysis
Microfinance Market Segmentation:
Tenure
Less than 1 Year
1-2 Years
More than 2 Years
Purpose
Agriculture
Manufacturing/ Production
Trade & Services
Household
Others
Provider Type
Banks
Microfinance Institute
Non-banking Financial Corporation
Others
Region/ Countries Covered:
North America
US
Canada
Mexico
Europe
U.K.
Germany
France
Italy
Spain
BeNeLux
Russia
Rest of Europe
Asia Pacific
China
Japan
Australia
India
South Korea
Thailand
Indonesia
Malaysia
Rest of Asia Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Egypt
South Africa
Rest of Middle East & Africa
Key Players Analyzed in the Report:
AL AMANA MICROFINANCE
Annapurna Finance (P) Ltd
Bandhan Bank Ltd
CDC Small Business Finance
KIVA MICROFUNDS
KOTAK MAHINDRA BANK LTD.
IndusInd Bank Ltd.
PACIFIC COMMUNITY VENTURES
BRAC International
IGP Advantag AG
- CHAPTER 1. Executive Summary
- CHAPTER 2. Scope of the Study
- 2.1. Market Definition
- 2.2. Market Scope & Segmentation
- 2.2.1. Objective of Report
- CHAPTER 3. Evolve BI Methodology
- 3.1. Data Collection & Validation Approach
- 3.2. Market Size Estimation and Forecast
- CHAPTER 4. Market Insights and Trends
- 4.1. Value Chain Analysis
- 4.1.1. Input Suppliers
- 4.1.2. Microfinance Institutions
- 4.1.3. Distribution Channel
- 4.1.4. End-User
- 4.2. Porter’s Five Forces Analysis
- 4.2.1. Bargaining Power of Buyers
- 4.2.2. Bargaining Power of Suppliers
- 4.2.3. Threat of New Entrant
- 4.2.4. Threat of Substitute
- 4.2.5. Industry Rivalry
- 4.3. COVID-19 Impact and Post COVID Scenario on Microfinance Market
- 4.3.1. Impact of COVID-19
- 4.3.2. Government Support and Industry Revival Policies
- 4.3.3. Measures Taken by Companies to Mitigate Negative Impact
- 4.3.4. Post COVID Trend
- CHAPTER 5. Market Dynamics
- 5.1. Introduction
- 5.2. Drivers
- 5.2.1. Increasing focus on financial inclusion for the unbanked population
- 5.2.2. Growth of Microenterprises
- 5.2.3. Growing adoption of entrepreneurship
- 5.3. Restraints
- 5.3.1. High Cost of Microfinance
- 5.4. Opportunity
- 5.4.1. Development of advanced technologies
- CHAPTER 6. Global Microfinance Market, By Tenure
- 6.1. Introduction
- 6.1.1. Less than 1 Year
- 6.1.2. 1-2 Years
- 6.1.3. More than 2 Years
- CHAPTER 7. Global Microfinance Market, By Purpose
- 7.1. Introduction
- 7.1.1. Agriculture
- 7.1.2. Manufacturing/ Production
- 7.1.3. Trade & Services
- 7.1.4. Household
- 7.1.5. Others
- CHAPTER 8. Global Microfinance Market, By Provider Type
- 8.1. Introduction
- 8.1.1. Banks
- 8.1.2. Microfinance Institute
- 8.1.3. Non-banking Financial Corporation
- 8.1.4. Others
- CHAPTER 9. Global Microfinance Market, By Region
- 9.1. Introduction
- 9.2. North America
- 9.2.1. North America: Market Size and Forecast, By Country, 2021 – 2034 ($ Million)
- 9.2.2. North America: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.2.3. North America: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.2.4. North America: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.2.5. US
- 9.2.5.1. US: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.2.5.2. US: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.2.5.3. US: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.2.6. Canada
- 9.2.6.1. Canada: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.2.6.2. Canada: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.2.6.3. Canada: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.2.7. Mexico
- 9.2.7.1. Mexico: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.2.7.2. Mexico: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.2.7.3. Mexico: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3. Europe
- 9.3.1. Europe: Market Size and Forecast, By Country, 2021 – 2034 ($ Million)
- 9.3.2. Europe: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.3. Europe: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.4. Europe: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.5. U.K.
- 9.3.5.1. U.K.: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.5.2. U.K.: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.5.3. U.K.: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.6. Germany
- 9.3.6.1. Germany: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.6.2. Germany: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.6.3. Germany: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.7. France
- 9.3.7.1. France: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.7.2. France: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.7.3. France: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.8. Italy
- 9.3.8.1. Italy: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.8.2. Italy: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.8.3. Italy: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.9. Spain
- 9.3.9.1. Spain: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.9.2. Spain: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.9.3. Spain: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.10. BeNeLux
- 9.3.10.1. BeNeLux: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.10.2. BeNeLux: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.10.3. BeNeLux: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.11. Russia
- 9.3.11.1. Russia: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.11.2. Russia: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.11.3. Russia: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.3.12. Rest of Europe
- 9.3.12.1. Rest of Europe: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.3.12.2. Rest of Europe: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.3.12.3. Rest of Europe: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4. Asia Pacific
- 9.4.1. Asia Pacific: Market Size and Forecast, By Country, 2021 – 2034 ($ Million)
- 9.4.2. Asia Pacific: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.3. Asia Pacific: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.4. Asia Pacific: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.5. China
- 9.4.5.1. China: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.5.2. China: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.5.3. China: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.6. Japan
- 9.4.6.1. Japan: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.6.2. Japan: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.6.3. Japan: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.7. Australia
- 9.4.7.1. Australia: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.7.2. Australia: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.7.3. Australia: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.8. India
- 9.4.8.1. India: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.8.2. India: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.8.3. India: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.9. South Korea
- 9.4.9.1. South Korea: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.9.2. South Korea: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.9.3. South Korea: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.10. Malaysia
- 9.4.10.1. Malaysia: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.10.2. Malaysia: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.10.3. Malaysia: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.11. Thailand
- 9.4.11.1. Thailand: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.11.2. Thailand: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.11.3. Thailand: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.12. Indonesia
- 9.4.12.1. Indonesia: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.12.2. Indonesia: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.12.3. Indonesia: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.4.13. Rest of Asia Pacific
- 9.4.13.1. Rest of Asia Pacific: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.4.13.2. Rest of Asia Pacific: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.4.13.3. Rest of Asia Pacific: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.5. South America
- 9.5.1. South America: Market Size and Forecast, By Country, 2021 – 2034 ($ Million)
- 9.5.2. South America: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.5.3. South America: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.5.4. South America: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.5.5. Brazil
- 9.5.5.1. Brazil: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.5.5.2. Brazil: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.5.5.3. Brazil: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.5.6. Argentina
- 9.5.6.1. Argentina: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.5.6.2. Argentina: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.5.6.3. Argentina: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.5.7. Rest of South America
- 9.5.7.1. Rest of South America: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.5.7.2. Rest of South America: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.5.7.3. Rest of South America: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.6. Middle East & Africa
- 9.6.1. Middle East & Africa: Market Size and Forecast, By Country, 2021 – 2034 ($ Million)
- 9.6.2. Middle East & Africa: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.6.3. Middle East & Africa: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.6.4. Middle East & Africa: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.6.5. Saudi Arabia
- 9.6.5.1. Saudi Arabia: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.6.5.2. Saudi Arabia: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.6.5.3. Saudi Arabia: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.6.6. UAE
- 9.6.6.1. UAE: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.6.6.2. UAE: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.6.6.3. UAE: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.6.7. Egypt
- 9.6.7.1. Egypt: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.6.7.2. Egypt: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.6.7.3. Egypt: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.6.8. South Africa
- 9.6.8.1. South Africa: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.6.8.2. South Africa: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.6.8.3. South Africa: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- 9.6.9. Rest of Middle East & Africa
- 9.6.9.1. Rest of Middle East & Africa: Market Size and Forecast, By Tenure, 2021 – 2034 ($ Million)
- 9.6.9.2. Rest of Middle East & Africa: Market Size and Forecast, By Purpose, 2021 – 2034 ($ Million)
- 9.6.9.3. Rest of Middle East & Africa: Market Size and Forecast, By Provider Type, 2021 – 2034 ($ Million)
- CHAPTER 10. Competitive Landscape
- 10.1. Competitior Benchmarking 2023
- 10.2. Market Share Analysis, 2023
- 10.3. Key Developments Analysis By Top 5 Companies
- 10.4. Market Share Acquisition Strategies: Analysis of Key Approaches Employed by Top Players
- CHAPTER 11. Company Profiles
- 11.1. AL AMANA MICROFINANCE
- 11.1.1. Business Overview
- 11.1.2. Product Portfolio
- 11.2. Annapurna Finance (P) Ltd
- 11.2.1. Business Overview
- 11.2.2. Financial Analysis
- 11.2.3. Product Portfolio
- 11.2.4. Recent Development and Strategies Adopted
- 11.2.5. SWOT Analysis
- 11.3. Bandhan Bank Ltd
- 11.3.1. Business Overview
- 11.3.2. Financial Analysis
- 11.3.2.1. Business Segment Revenue, 2023
- 11.3.3. Product Portfolio
- 11.3.4. Recent Development and Strategies Adopted
- 11.3.5. SWOT Analysis
- 11.4. CDC Small Business Finance
- 11.4.1. Business Overview
- 11.4.2. Product Portfolio
- 11.4.3. Recent Development and Strategies Adopted
- 11.5. KIVA MICROFUNDS
- 11.5.1. Business Overview
- 11.5.2. Financial Analysis
- 11.5.2.1. Business Segment Revenue, 2023
- 11.5.3. Product Portfolio
- 11.5.4. Recent Development and Strategies Adopted
- 11.5.5. SWOT Analysis
- 11.6. KOTAK MAHINDRA BANK LTD.
- 11.6.1. Business Overview
- 11.6.2. Financial Analysis
- 11.6.2.1. Business Segment Revenue, 2023, $ Million
- 11.6.3. Product Portfolio
- 11.6.4. Recent Development and Strategies Adopted
- 11.6.5. SWOT Analysis
- 11.7. IndusInd Bank Ltd.
- 11.7.1. Business Overview
- 11.7.2. Financial Analysis
- 11.7.2.1. Business Segment Revenue, 2023
- 11.7.3. Product Portfolio
- 11.7.4. Recent Development and Strategies Adopted
- 11.7.5. SWOT Analysis
- 11.8. PACIFIC COMMUNITY VENTURES
- 11.8.1. Business Overview
- 11.8.2. Product Portfolio
- 11.9. BRAC International
- 11.9.1. Business Overview
- 11.9.2. Financial Analysis
- 11.9.2.1. Business Segment Revenue, 2023
- 11.9.3. Product Portfolio
- 11.9.4. Recent Development and Strategies Adopted
- 11.10. IGP Advantag AG
- 11.10.1. Business Overview
- 11.10.2. Product Portfolio
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