Global Term Loan Market is valued at approximately USD 576.8 billion in 2023 and is anticipated to grow with a healthy growth rate of more than 6.2% over the forecast period 2024-2032. Term loans are structured financial instruments provided by banks and financial institutions to borrowers for specific periods, where the borrower agrees to repay the loan principal along with interest over a set duration. These loans are a fundamental tool for financing significant investments, ranging from business expansions to personal needs such as education, home renovations, and medical expenses. The fixed repayment schedule of term loans allows borrowers to manage their finances effectively, making them a preferred choice for individuals and businesses alike.
The global market for term loans is experiencing robust growth, driven by several factors. The increasing demand for financing to meet personal and business requirements, coupled with the trend towards urbanization and the associated rise in living standards, has led to a surge in term loan applications. Additionally, the integration of advanced technologies such as artificial intelligence (AI) and software solutions in the loan disbursement and management process has revolutionized the lending landscape, making it more accessible and efficient for borrowers. These technologies have enabled faster loan processing times, improved customer experience, and enhanced risk management, further propelling market growth.
However, the term loan market faces challenges that could impede its growth. Stringent scrutiny of borrowers' credit histories by lenders, along with economic uncertainties that may affect repayment capabilities, are significant hurdles. These factors could deter potential borrowers from seeking term loans or result in higher interest rates for those with less favorable credit histories. Nonetheless, the growing demand for short-term loans, which are typically easier to obtain due to the lack of collateral requirements, presents opportunities for market expansion. Furthermore, the rise of fintech companies and online loan platforms is expected to drive the term loan market in the coming years, offering more accessible and flexible loan options to a broader audience.
The key regions considered for the global Market study include Asia Pacific, North America, Europe, Latin America, and Rest of the World. North America is a dominating region in the term loan Market in terms of revenue. North America, with its well-established financial infrastructure and high demand for personal and business loans, dominates the global market. In contrast, emerging economies in Asia-Pacific and Latin America are witnessing rapid growth in the adoption of term loans, driven by increasing financial literacy, expanding middle-class populations, and the proliferation of digital lending platforms. These regions are expected to contribute significantly to the overall market growth during the forecast period.
Major market players included in this report are:
Bajaj Finserv
Tata Capital Limited
Funding Circle Limited
Social Finance, Inc.
Loans Canada
US Fund Source
Swoop Finance Ltd
Rupee Station Pvt. Ltd.
Cashpal Super Fast Same Day Loans
Compare The Market Limited
BankBazaar.com
Sunshine Loans
Choose Wisely Limited
The detailed segments and sub-segment of the market are explained below:
By Type
Short-term Loans
Intermediate-term Loans
Long-term Loans
By Interest Rate
Fixed Interest Rate
Floating Interest Rate
By Provider
Banks
Financial Institutions
Credit Unions
Others
By Region:
North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
RoLA
Middle East & Africa
Saudi Arabia
South Africa
RoMEA
Years considered for the study are as follows:
Historical year - 2022
Base year - 2023
Forecast period - 2024 to 2032
Key Takeaways:
Market Estimates & Forecast for 10 years from 2022 to 2032.
Annualized revenues and regional level analysis for each market segment.
Detailed analysis of geographical landscape with Country level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of competitive structure of the market.
Demand side and supply side analysis of the market.
