India Personal Loan Market Projected to Reach USD 556.3 Billion by 2033

The latest report by IMARC Group, "India Personal Loan Market Size, Share, Trends and Forecast by Provider, Tenure, Interest Rate, and Region, 2025-2033," offers a comprehensive analysis of the India personal loan market.

This report also includes competitor and regional analysis, along with a breakdown of segments within the industry. The India personal loan market size reached USD 135.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 556.3 Billion by 2033, exhibiting a growth rate (CAGR) of 15.70% during 2025-2033.

Attribute Key and Statistics:
Base Year: 2024
Forecast Years: 2025-2033
Historical Years: 2019-2024
Market Size in 2024: USD 135.7 Billion
Market Forecast in 2033: USD 556.3 Billion
Market Growth Rate (2025-2033): 15.70%

India Personal Loan Market Overview:

The Indian personal loan segment is exhibiting strong growth, led by the surge in digital lending platforms and the surge in demand for small-ticket and short-duration loans. The widespread use of technology-driven lending products has made the process of approving and disbursing loans faster, thereby extending credit to a larger section of the population. Also, the shift towards online platforms is most appealing to the young and new borrowers who are keen on instant, paperless dealings.

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India Personal Loan Market Trends and Drivers:

Online lending portals are a front-runner in India personal loan segment. Fintech players and non-banking financial companies (NBFCs) are making use of artificial intelligence (AI) and machine learning (ML) to gauge creditworthiness, allowing them to sanction loans and disburse them quickly. For example, in March 2025, the State Bank of India launched mutual fund loans through Internet Banking and the YONO App, providing a 100% digital, paperless, and 24x7 facility for customer convenience. The popularity of mobile banking and digital payment tools like the Unified Payments Interface (UPI) has also fueled growth in digital lending.

The growing need for short-term and small-ticket personal loans is a significant growth driver for the market. The demand is fueled by the need for immediate funds to cater to sudden expenses, such as medical emergencies, education, and vacations. The convenience of instant, paperless loan applications via online platforms has made it easy to access credit without the need for extensive documentation or collateral. Additionally, regulatory frameworks, such as the Reserve Bank of India's (RBI) digital lending guidelines, are encouraging transparency and consumer protection in the sector, further increasing consumer confidence and market growth.

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Key Drivers of the India Personal Loan Market:

• Proliferation of digital lending platforms enhancing accessibility and convenience.
• Rising demand for small-ticket and short-term loans to meet immediate financial needs.
• Advancements in AI and ML enabling faster credit assessments and loan approvals.
• Increased smartphone penetration and digital literacy among the population.
• Regulatory support from the RBI promoting transparency and consumer protection.
• Shift in consumer preference towards instant, paperless transactions over traditional banking methods.

India Personal Loan Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on provider, tenure, interest rate, and region.

Provider Insights:
• Banks
• Non-Banking Financial Companies (NBFCs)
• Others

Tenure Insights:
• Less than 1 Year
• 1-3 Years
• Over 3 Years

Interest Rate Insights:
• Fixed Rate
• Floating Rate

Regional Insights:
• North India
• West and Central India
• South India
• East and Northeast India

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Personal Loan Market News:

In February 2025, the State Bank of India (SBI) expressed optimism that tighter credit reporting rules would alleviate concerns over defaults on small-ticket personal loans. The Reserve Bank of India mandated that credit bureaus update borrowers' credit information fortnightly, enabling lenders to better assess customers' leverage and limit additional credit accordingly. SBI reported stable asset quality with bad loans at 2.07% for the October-December quarter, indicating resilience in its personal loan portfolio.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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