PUBLISHER: Blueweave Consulting | PRODUCT CODE: 1391792
PUBLISHER: Blueweave Consulting | PRODUCT CODE: 1391792
India Consumer Finance Market, By Type (Secured Consumer Finance, Unsecured Consumer Finance); By Region (North India, South India, East India, West India), Trend Analysis, Competitive Landscape & Forecast, 2019-2029
India Consumer Finance Market Size Zooming 5.4X at Robust CAGR of 32.34% to Reach Whopping USD 184.92 Billion by 2029.
India consumer finance market is booming because of an increasing digital banking and growing consumer preference towards the use of credit cards
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India consumer finance market size at USD 34.42 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the India consumer finance market size to grow at a significant CAGR of 32.34% reaching a value of USD 184.92 billion by 2029. Major growth drivers for the India consumer finance market include the rising per capita income, robust economic expansion, accelerated urbanization, and increased consumer purchasing power. A pivotal factor propelling this expansion is the surging preference for credit card utilization among consumers. Credit cards offer diverse advantages, including rewards, promotional perks such as discounted movie tickets and flight bookings. Particularly noteworthy is the increasing popularity of Equated Monthly Installments (EMIs) with either no or minimal interest rates, which is anticipated to contribute to the market's growth by 2024. Also, the market stands to gain from the readily available array of loan types, including home loans, auto loans, and education loans, provided by both public and private banks and financial institutions. The influence of demonetization on the transition to digital transactions has been positive, albeit with a moderate long-term impact on credit card usage. Another driving force is the enhanced accessibility of consumer durable finance through partnerships between major electronic retail chains like Croma and Vijay Sales and financial service providers like Bajaj FinServ and Tata Capital, further amplifying the market's growth potential in the forecast period. However, interest rate volatility and lack of financial literacy are anticipated to restrain the overall market growth during the period in analysis.
India Consumer Finance Market - Overview
The India consumer finance market refers to the sector of the Indian financial industry that specializes in providing various financial products and services to individual consumers. These financial products and services can include credit cards, personal loans, home loans, car loans, consumer durable finance, and other forms of credit and lending solutions. The market caters to the financial needs of individual consumers by offering them access to credit, facilitating purchases of consumer goods, and supporting various personal financial requirements. It is influenced by factors such as economic growth, consumer spending power, urbanization, and changing preferences for financial products and services.
Impact of COVID-19 on India Consumer Finance Market
COVID-19 pandemic adversely affected the India consumer finance market. Lockdowns, economic uncertainty, and disruptions to income streams led to a surge in loan defaults and delayed repayments. Financial institutions faced increased credit risk, necessitating stricter lending criteria. On the bright side, digital adoption accelerated, promoting online loan applications and contactless payments. Additionally, the Reserve Bank of India introduced regulatory measures to provide relief, including moratoriums and restructuring options. As the economy recovers, consumer finance is adapting to the new normal, emphasizing risk management, digital strategies, and financial inclusion to navigate the ongoing challenges.
India Consumer Finance Market - By Type
By type, the India consumer finance market is split into Secured Consumer Finance and Unsecured Consumer Finance segments. The unsecured consumer finance segment is expected to hold a higher share in the India consumer finance market during the forecast period by type. Unsecured loans, such as personal loans and credit cards, do not require collateral, making them more appealing to a broader range of consumers. This inclusivity is vital in a diverse country like India, where not everyone possesses significant assets for collateral. Furthermore, the convenience of obtaining unsecured credit through digital channels has accelerated its popularity. While interest rates may be higher, the demand for quick, hassle-free credit has driven the unsecured segment's dominance in the market. Also, the unsecured consumer finance segment includes personal loan, home improvement loan, credit card, consumer durable finance, and education loan.
Competitive Landscape
Major players operating in the India Consumer Finance market include: Bajaj Capital Limited, Birla Global Finance Limited, Housing Development Finance Corporation, ICICI Group, LIC Finance Limited, L&T Finance Limited, Mahindra & Mahindra Financial Services Limited, Muthoot Finance Ltd, Cholamandalam, and Tata Capital Financial Services Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Consumer Finance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Consumer Finance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
Table of Contents
1. Research Framework
- 1.1. Research Objective
- 1.2. Product Overview
- 1.3. Market Segmentation
2. Executive Summary
3. India Consumer Finance Market Insights
- 3.1. Industry Value Chain Analysis
- 3.2. DROC Analysis
- 3.2.1. Growth Drivers
- 3.2.1.1. Rising digital banking
- 3.2.1.2. Growing consumer preference towards the use of credit cards
- 3.2.2. Restraints
- 3.2.2.1. Interest rate volatility
- 3.2.2.2. Lack of financial literacy
- 3.2.3. Opportunities
- 3.2.3.1. Increasing disposable income
- 3.2.3.2. Emerging fintech ecosystem
- 3.2.4. Challenges
- 3.2.4.1. Digital security and privacy concerns
- 3.2.4.2. Regulatory compliance and stringency
- 3.2.1. Growth Drivers
- 3.3. Technological Advancements/Recent Developments
- 3.4. Regulatory Framework
- 3.5. Porter's Five Forces Analysis
- 3.5.1. Bargaining Power of Suppliers
- 3.5.2. Bargaining Power of Buyers
- 3.5.3. Threat of New Entrants
- 3.5.4. Threat of Substitutes
- 3.5.5. Intensity of Rivalry
4. India Consumer Finance Market Overview
- 4.1. Market Size & Forecast, 2019-2029
- 4.1.1. By Value (USD Billion)
- 4.2. Market Share & Forecast
- 4.2.1. By Type
- 4.2.1.1. Secured Consumer Finance
- 4.2.1.1.1. Collateral Loans
- 4.2.1.1.2. Housing Loans
- 4.2.1.1.3. Auto Loan
- 4.2.1.2. Unsecured Consumer Finance
- 4.2.1.2.1. Personal Loan
- 4.2.1.2.2. Home Improvement Loan
- 4.2.1.2.3. Credit Card
- 4.2.1.2.4. Consumer Durable Finance
- 4.2.1.2.5. Education Loan
- 4.2.1.2.6. Others
- 4.2.2. By Region
- 4.2.2.1. North India
- 4.2.2.2. South India
- 4.2.2.3. East India
- 4.2.2.4. West India
- 4.2.1. By Type
5. North India Consumer Finance Market
- 5.1. Market Size & Forecast, 2019-2029
- 5.1.1. By Value (USD Billion)
- 5.2. Market Share & Forecast
- 5.2.1. By Type
- 5.2.2. By Application
- 5.2.3. By End User
6. South India Consumer Finance Market
- 6.1. Market Size & Forecast, 2019-2029
- 6.1.1. By Value (USD Billion)
- 6.2. Market Share & Forecast
- 6.2.1. By Type
- 6.2.2. By Application
- 6.2.3. By End User
7. East India Consumer Finance Market
- 7.1. Market Size & Forecast, 2019-2029
- 7.1.1. By Value (USD Billion)
- 7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Application
- 7.2.3. By End User
8. West India Consumer Finance Market
- 8.1. Market Size & Forecast, 2019-2029
- 8.1.1. By Value (USD Billion)
- 8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Application
- 8.2.3. By End User
9. Competitive Landscape
- 9.1. List of Key Players and Their Offerings
- 9.2. India Consumer Finance Company Market Share Analysis, 2022
- 9.3. Competitive Benchmarking, By Operating Parameters
- 9.4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Consumer Finance Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- 11.1. Bajaj Capital Limited
- 11.2. Birla Global Finance Limited
- 11.3. Housing Development Finance Corporation
- 11.4. ICICI Group
- 11.5. LIC Finance Limited
- 11.6. L & T Finance Limited
- 11.7. Mahindra & Mahindra Financial Services Limited
- 11.8. Muthoot Finance Ltd
- 11.9. Cholamandalam
- 11.10. Tata Capital Financial Services Ltd
- 11.11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
- 13.1. Qualitative Research
- 13.1.1. Primary & Secondary Research
- 13.2. Quantitative Research
- 13.3. Market Breakdown & Data Triangulation
- 13.3.1. Secondary Research
- 13.3.2. Primary Research
- 13.4. Breakdown of Primary Research Respondents, By Region
- 13.5. Assumptions & Limitations
*Financial information of case of non-listed companies can be provided as per availability.
**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.
List of Figures
- Figure 1 India Consumer Finance Segmentation
- Figure 2 India Consumer Finance Market Value Chain Analysis
- Figure 3 Company Market Share Analysis, 2022
- Figure 4 India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Figure 5 India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Figure 6 India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Figure 7 India Consumer Finance Market Share, By Region, By Value, 2019-2029
- Figure 8 North India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Figure 9 North India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Figure 10 North India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Figure 11 South India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Figure 12 South India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Figure 13 South India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Figure 14 East India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Figure 15 East India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Figure 16 East India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Figure 17 West India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Figure 18 West India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Figure 19 West India Consumer Finance Market Share, By Application, By Value, 2019-2029
List of Tables
- Table 1 India Consumer Finance Segmentation
- Table 2 India Consumer Finance Market Value Chain Analysis
- Table 3 Company Market Share Analysis, 2022
- Table 4 India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Table 5 India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Table 6 India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Table 7 India Consumer Finance Market Share, By Region, By Value, 2019-2029
- Table 8 North India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Table 9 North India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Table 10 North India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Table 11 South India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Table 12 South India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Table 13 South India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Table 14 East India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Table 15 East India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Table 16 East India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Table 17 West India Consumer Finance Market Size, By Value (USD Billion), 2019-2029
- Table 18 West India Consumer Finance Market Share, By Type, By Value, 2019-2029
- Table 19 West India Consumer Finance Market Share, By Application, By Value, 2019-2029
- Table 20 Bajaj Capital Limited Company Overview
- Table 21 Bajaj Capital Limited Financial Overview
- Table 22 Birla Global Finance Limited Company Overview
- Table 23 Birla Global Finance Limited Financial Overview
- Table 24 Housing Development Finance Corporation Company Overview
- Table 25 Housing Development Finance Corporation Financial Overview
- Table 26 ICICI Group Company Overview
- Table 27 ICICI Group Financial Overview
- Table 28 LIC Finance Limited Company Overview
- Table 29 LIC Finance Limited Financial Overview
- Table 30 L & T Finance Limited Company Overview
- Table 31 L & T Finance Limited Financial Overview
- Table 32 Mahindra & Mahindra Financial Services Limited Company Overview
- Table 33 Mahindra & Mahindra Financial Services Limited Financial Overview
- Table 34 Muthoot Finance Ltd Company Overview
- Table 35 Muthoot Finance Ltd Financial Overview
- Table 36 Cholamandalam Company Overview
- Table 37 Cholamandalam Financial Overview
- Table 38 Tata Capital Financial Services Ltd Company Overview
- Table 39 Tata Capital Financial Services Ltd Financial Overview
