India Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

India Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

According to PayNXT360, the alternative lending in the country is expected to grow by 26.3% on an annual basis to reach US$9,513.4 million in 2024.

Medium to long term growth story of alternative lending in India remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 17.7% during 2024-2028. The alternative lending market in the country will increase from US$7,531.9 million in 2023 to reach US$18,242.7 million by 2028.

The alternative lending sector in India is experiencing dynamic growth, driven by digital innovation and evolving market needs. Key developments include new product launches, strategic partnerships, and significant mergers and acquisitions. Regulatory measures from the RBI are enhancing transparency and consumer protection, promoting responsible lending practices. Despite challenges, the sector is poised to play a crucial role in expanding access to credit and shaping the future of financial services in India.

Growth in the Alternative Lending Sector

Alternative lending in India has shown robust growth, driven by increased digital adoption and the need for accessible credit among underserved segments. The financial sector is expected to grow in the next few months, especially in areas such as peer-to-peer lending and financial technology solutions. New data analytics are improving how credit is assessed and making it easier for small businesses and individuals to get financing. Even though there are challenges related to funding and market conditions, alternative lending remains an important part of India's changing financial landscape.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

In India's alternative lending sector, Jar has launched digital lending services through partnerships with Liquiloans and other non-banking financial institutions to address credit needs in underserved markets.

PhonePe is seeking an NBFC license to diversify its offerings, while Jupiter, a neo-banking platform, has successfully obtained such a license to provide lending products. This reflects the trend of fintech companies expanding into alternative lending space

Strategic Partnerships

Paytm and Clix Capital Partnership - Paytm, a leading digital payments platform, has partnered with Clix Capital, a non-banking financial company (NBFC), to offer instant digital loans to consumers and merchants. This partnership allows Paytm to embed lending solutions directly into its app, providing users with seamless access to credit.
Jar's Partnerships with NBFCs - Jar, a savings startup backed by Tiger Global, has entered the digital lending space through partnerships with Liquiloans and other NBFCs. These partnerships aim to address the credit needs of underserved markets by embedding lending solutions into Jar's platform, making credit more accessible to a broader customer base.

Mergers and Acquisitions

Svatantra's Acquisition of Chaitanya India Fin Credit Limited: Svatantra, a microfinance provider, raised $233 million in a funding round led by Advent International and Multiples. This investment follows its acquisition of Chaitanya, positioning the combined entity as one of India's largest non-banking microfinance companies. This merger aims to enhance service delivery and expand its reach in microfinance, particularly focusing on women entrepreneurs.

Indifi Technologies' Acquisition: Indifi, specializing in lending to small businesses, has acquired a competitor to broaden its market presence. This move is part of a larger trend in the fintech sector, where established players are consolidating to enhance competitiveness and service delivery.

Regulatory Changes

RBI's Digital Lending Guidelines - Reserve Bank of India (RBI) issued guidelines to all lenders, including banks and NBFCs, to protect the data of borrowers using digital lending apps. These guidelines mandate transparency in loan products, comprehensive digital overviews for borrowers, and adherence to data privacy standards.
Lending Service Providers (LSPs) Framework - The RBI has introduced draft guidelines for Lending Service Providers (LSPs). These guidelines facilitate transparency by providing borrowers with digital overviews of loan products from multiple lenders. This framework promotes informed decision-making among consumers and enhances the overall lending ecosystem.

Enabling Regulations for Alternative Lending - The RBI's regulatory initiatives are expected to foster more responsible lending conduct by Regulated Entities (REs) in the alternative lending space. These regulations define the boundaries of industry conduct while ensuring a balance between fostering innovation and safeguarding the public interest.

Harmonized Approach to Regulations - The RBI is adopting a ""same activity, same risk, same regulations"" approach to enhance oversight capabilities and identify systemic risks in the alternative lending sector. This approach allows for differentiated regulatory treatment based on the specific risks associated with each financial entity and activity type.

This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in India. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth data-centric analysis of Alternative Lending industry in India through 125 tables and 150 charts. Below is a summary of key market segments:

India Economic Indicators
• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

India Alternative Lending Market Size and Forecast
• Transaction Value
• Average Transaction Value
• Transaction Volume

India Alternative Lending Market Size and Forecast by End User
• End User - Business
• End User - Consumer

India Alternative Lending Market Size and Forecast by Finance Models
• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

India Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

India Alternative Lending Market Size and Forecast by Payment Instrument to Model
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

India Alternative Lending Market Size and Forecast by Loan Types
• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

India Alternative Lending Analysis by Consumer Attitude and Behaviour
• By Age
• By Income
• Gender

Reasons to buy

• Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 – 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.

• Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.

• Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.

• Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in India, develop proactive and profitable company plans.