Microfinancing allows borrowers who may have difficulty qualifying for a traditional loan the opportunity to access smaller financing options, usually up to $50,000. These loans are typically designed to help underserved communities or businesses with limited resources be able to financially support their business.
While the loans used in microfinance may be smaller than those in conventional lending, microfinancing as a whole plays a large role in stimulating the worldwide economy. If you’re considering this type of loan for yourself or are interested in getting an idea of its impact, here are some trends in microfinance to be aware of.
General Microfinance Statistics
1. As of 2023, the microfinance market was valued at over $195 billion
Individual loans made in microfinancing may be small, but they play a large role in the global economy. In total, data collected from 2023 revealed that the total market size of microfinancing was valued at $195.3 billion in 2023.
However, growth decelerated in 2023, with a median growth of 10.1%, down from 13.7% in the prior year. The market value also represents around 142 million borrowers who took advantage of microfinancing, a year-over-year increase of 8.4%
(Convergences Impact Finance Barometer 2024)
2. Microfinancing is projected to reach over $377 billion by 2030
Microfinancing has historically consisted of many loans issued to borrowers worldwide, and that trend is expected to continue growing. The global microfinancing market is projected to reach a size of close to $377.1 billion by 2030. This represents an expected average annual growth rate of approximately 10.65% and indicates that individual investors and lending institutions recognize the benefits of continuing to offer this type of product.
(Research & Markets Microfinance Market by Services, Providers | Global Forecast 2025-2030)
3. More than $87 million in SBA microloans were issued in 2023
The Small Business Administration (SBA) offers a microloan program for businesses needing up to $50,000 in funding. These loans can be used for various business purposes, including working capital, inventory, equipment, and other business expenses. The average SBA microloan is about $13,000, and the SBA issued $87 million for its 2023 fiscal year. More than 5,500 loans were issued, with 35% going toward black-owned businesses and 15% going to Latino-owned businesses.
(U.S. Small Business Administration Press Release 23-90)
4. Most microfinancing providers offer additional services
60 Decibels surveyed over 126 institutions globally, and found that 30% of clients who sought microfinancing from financial service providers received at least one additional service in addition to their loans, which had numerous benefits. Some examples of these additional services are non-financial and include education, health services, and training to help borrowers better manage their business finances. Other financial services provided included insurance, savings, and other deposit or banking services.
(60 Decibels Microfinance Index 2024)
Microfinance Demographics Statistics
5. Women make up the majority of microfinance loans
Microloans are typically designed to reach underserved communities, minorities, and those who are unable to get conventional means of funding. As one example, women-owned businesses often fall into one of these categories, as a recent post by the U.S. Census revealed that only around 22% of businesses were owned by women.
Microfinance data reveals that it has succeeded in this regard, as a survey from 60 Decibels revealed that two-thirds of microloans were issued to women in 2024, similar to 2023 numbers.
(U.S. Small Business Administration Press Release 23-90; 60 Decibels Microfinance Index 2024)
6. Asia represents the most popular location for microfinancing
Geographically, South and Southeast Asia have the highest concentration of microfinance borrowers. Compared to the global market, it has 71.8% of borrowers based on 2023 year-end data. Other regions with many microfinance borrowers include Latin America, the Caribbean, Sub-Saharan Africa, Europe and Central Asia, and the Middle East and North Africa.
(Convergences Impact Finance Barometer 2024)
7. Average loan balances for microloans have a global median of around 45% of a country’s Gross National Income
Microloans represent a median of 44.6% of Gross National Income when all countries are considered. This figure is the smallest in the South and Southeast Asia region at 32.1%, which shows that most microloans made in this region are much smaller on average when compared to the rest of the world.
(Convergences Impact Finance Barometer 2024)
Microfinance Customer Statistics
8. Microfinance payments are generally affordable for clients
Being that microfinancing generally focuses on underserved communities, some may believe that the possibility increases for predatory lending practices to occur, such as charging prohibitively expensive rates or hidden fees. In general, however, this does not appear to be the case. Survey responses showed that only 26% of global borrowers reported loan payments as a burden, and 95% had never experienced an unexpected fee (without alternatives).
(60 Decibels Microfinance Index 2024)
If you’re worried about your approval odds or are unsure of how to determine your eligibility and affordability, check out our guide on how to get a small business loan.
9. Microloans have a high repayment rate
Some banks and lending institutions may consider microloans as having a greater risk of default, which may partially be due to these typically targeting underserved communities and those unqualified for conventional loans. However, information gathered showed that the amount of write-offs of microloans has historically been low.
The median rate of write-offs was 1.3% in 2023, with 5.8% of loans considered at risk of loss due to no payments being made in the past 30 days. Compared to 2022, the median rate of write-offs was 0.6%, with 4.5% of loans considered at risk of loss.
(Convergences Impact Finance Barometer 2024)
10. Nearly half of microloan customers are relatively new
60 Decibels completed a survey of over 36,000 microfinance borrowers worldwide and found that, on average, 49% of them had been with their lender for less than two years. This demonstrates the rapid growth of the microfinance industry, and how demographics that would have difficulty accessing financing in the past are able to seek microfinance as an alternative route.
(60 Decibels Microfinance Index 2024)
11. 44% of microloan customers borrowed funds as a group
Microloans can be made to individuals or to a group, with each member of that group assuming responsibility for repayments. Group loans are often made in the event of larger loan amounts or when financing costs are high. This can also occur if there are no other microfinance lenders available in the area.
Approximately 44% of microloans were issued to group borrowers, an indication that in most areas, competition amongst lenders is high or the costs to get funding are reasonable. This may also not come as too much of a surprise, considering the fact that microloans are typically smaller in size and should not often require borrowing as a group as a way to strengthen the loan application.
(60 Decibels Microfinance Index 2024)
Statistics on the Impact of Microfinancing
12. Most borrowers report an improvement in quality of life
Borrowers who have received assistance from a microloan generally report an increase in the quality of their lives. This is based on survey responses from over 36,000 participants, with other life impacts including things like health, access to education, home improvements, and confidence in managing finances.
In fact, three-quarters of clients feel better prepared to handle emergency expenses, compared to 68% of those relying on just a loan. Additionally, 91% of clients using these services report greater confidence in managing their finances than 82% without such support.
(60 Decibels Microfinance Index 2024)
13. The expanded access to microloans has improved the financial status of most borrowers
Microfinance provides loans to individuals and businesses that otherwise might be unable to get funding. This assistance can help the business grow and generate additional sales. The additional revenue that’s generated plays a large role in strengthening the financial position of the business and the business owner, all of which is supported by data from 60 Decibel’s microfinance survey, where as much as 77% reported an increase in the balance of their savings.
(60 Decibels Microfinance Index 2024)
14. Microfinance helps promote economic growth through the creation of jobs
Surveys found that over 1.4 million jobs were created in 2023 due to microfinance based on data from 21 lenders in 13 countries.
It should come as no surprise that microfinance, one of several options available when funding a startup, helps support economies by the creation of jobs as the funding itself can help businesses continually grow, something that often leads to the need for additional resources and employees to scale.
(BNP Paribas 2024 Microfinance Social Performance Report)
Frequently Asked Questions (FAQs)
This depends on the borrower and their intended use of funds. Microfinance can be effective mainly for borrowers with limited resources who need small amounts of funding for businesses that otherwise may be ineligible for other types of traditional business loans. That said, it can vastly improve the well-being of a business, and provide opportunities that otherwise may be difficult to qualify for.
The microfinance industry is worth billions—and it is projected to continue growing with each passing year. In fact, in 2023, the estimated market size was over $194 billion and is expected to reach over $377 billion by the year 2030.
The growth rate of microfinancing has steadily increased, and, as of 2023, had a growth rate of approximately 10%. It’s estimated that it will continue to grow year-over-year, and make up a large portion in the future of financial services.
Bottom Line
Microfinancing plays a large role in the global economy and is especially beneficial for borrowers who may have difficulty accessing traditional business loans to source funding for their businesses. These loans often go to underserved communities, which are often overlooked and miss out on financing opportunities.
If you’re considering this route for your business, the microfinance data we’ve collected can give you an idea of what you can expect as a borrower. Check out our microloan guide for more details on what they are and where you can get funding.
References:
Convergences Impact Finance Barometer 2024, Research & Markets Microfinance Market by Services, Providers | Global Forecast 2025-2030, U.S. Small Business Administration Press Release 23-90, 60 Decibels Microfinance Index 2024, BNP Paribas 2024 Microfinance Social Performance Report
