Microfinance, Microlending and Microcredit Statistics – Updated 2020

While it’s a relatively new financial concept, the concept of microfinance is an incredibly powerful one. Microloans and other forms of microfinance may have the power to reduce global poverty while providing much-needed financial services to a sector of people that are most commonly underserved by traditional financial products. Not to be confused with predatory payday loans, microfinance products can also be useful for small businesses that have difficulty securing traditional financing. 

Microfinance products have slowly been growing since they first arrived in the late 1990s. But, are they having a positive impact they should be having in underrepresented populations? Today, we’ll take a closer look at some interesting microfinance statistics to learn more about the state of the microfinance industry and where it’s headed in 2020. 

Microfinance Statistics

The microfinance industry serviced 139.9 million borrowers in 2018. [1]

Four out of five microfinance borrowers in 2018 were women. [1]

65% of microfinance borrowers live in rural areas where traditional banking and lending is difficult or impossible. [1]

In 2017, 664,000 microloans were distributed to borrowers. [1]

The microfinance industry has been growing at an annual rate of 11.5% over the past five years. [1]

The South Asian region of the world is the largest microfinancing market, with 85.6 million borrowers in 2018. [1]

In 2019, the Small Business Administration provided 5,533 microloans to small businesses. [2]

The amount of microloans provided by the SBA has increased by 32.6% since 2010. [2]

The Small Business Administration issued $81.5 million in microloans in 2019. [2]

As recently as 2011, only 51% of adults in the world had some form of a bank account. [3]

As of 2017, 69% of adults in the world have some form of bank account, leaving 31% of adults in the world with no form of banking. [3]

72% of men have a bank account, while only 65% of women do. The popularity of microfinance among women is helping to reduce this gender gap. [3]

1.7 billion adults do not have a traditional or mobile banking option as of 2017. [3]

Less than 20% of borrowers in developing countries obtained their loan from a traditional financial institution. [3]

Financial inclusion practices such as microlending can help enable 7 of the 17 Sustainable Development Goals laid out by the United Nations. [4]

As of December 31st, 2010, 205,314,502 people were being serviced by the microfinance industry. Of those, 137,547,441 were living in extreme poverty at the time of their loan. [5]

India leads the world in terms of microfinance borrowers, with 50.9 million borrowers as of 2017. A 5.8% increase over 2016. [6]

The annual growth rate of the microfinance industry from 2008-2017 was 30%. [6]

The global microfinance industry was projected to reach 129.4 billion dollars in 2019. [7]

According to the National Small Business Institute, 27% of small businesses were unable to secure traditional financing when they needed it in 2017. [8] 

Sources

[1] http://www.convergences.org/wp-content/uploads/2019/09/Microfinance-Barometer-2019

[2] https://fas.org/sgp/crs/misc/R41057.pdf

[3] https://globalfindex.worldbank.org/

[4] https://www.worldbank.org/en/topic/financialinclusion/overview

[5] https://www.mycreditsummit.com/wp-content/uploads/2019/11/web_socr-2012_english

[6] http://www.convergences.org/wp-content/uploads/2018/09/BMF_2018_EN_VFINALE.pdf

[7] https://gomedici.com/understanding-microlending-landscape-slow-steady-growth

[8] https://nsba.biz/wp-content/uploads/2018/02/Year-End-Economic-Report-2017.pdf