United Kingdom Loan Market to be Dominated by Personal Loan Segment in the Forecast Period
Rising consolidated debts
and increasing purchase of home improvement loans is projected to fuel the
growth of the United Kingdom loan market through 2028
According to
TechSci Research report, “United Kingdom Loan Market – By
Competition Forecast and Opportunities, 2018-2028F” The United Kingdom loan
market is anticipated to project robust growth in the forecast period due to
booming online loans, rising demand for car loans, growing internet
penetration, and increasing loan process automation.
In its most basic form, consumer lending involves
loaning of money for personal, family, or household spending. Unlike bigger
loans secured against assets or property, most consumer loans (excluding
automobile loans) are unsecured, posing a risk to both the financial
institution that provided the payment and the customer who must repay the debt.
Generally, consumer loans are used to pay bills, purchase commodities, purchase
cars and furnishings, or make home upgrades.
Taking out a loan to finance an
automobile has grown significantly, with some even leasing cars for a specific
period. Instead of buying a car with their own money, car financing has become
a more appealing option. Leasing, hire purchase, personal contract purchase, or
the utilization of a personal loan to purchase an automobile are all options
for car financing.
Browse over XX market data Figures spread through XX Pages and an in-depth TOC on the " United Kingdom Loan Market ".
Thousands of people across the United
Kingdom are looking for various types of loans to help them finance their
lifestyles. Whether it's guarantor loans or mortgages, the number of people
asking for a loan has increased dramatically over the years. Borrowing money
has become the new standard as more people look for a loan. The Finance &
Leasing Association (FLA) has released new car-finance data highlighting
further trends and performance in the United Kingdom. According to the data, new
business volumes in this market increased 33% over the preceding year in
November 2021.
The government has been working on various
initiatives to ease customer loan limits. For instance, The No Interest Loan
Scheme (NILs) was launched in September to assist United Kingdom households
with rising food and living costs. The system was initially tested with 5,000
participants in Manchester to assist parents in covering the cost of food bills
during school vacations. As a result of the research, 71% of participants
reported they were less likely to fall behind on bills, council tax, and rent.
The
United Kingdom Loan Market is segmented based on type, provider type, interest
rate, tenure period, region, and competitional landscape.
Based
on type, the United Kingdom Loan Market is divided into secured or unsecured
loans. Secured loans are those in which the borrower commits an asset or property
as collateral for loan repayment. If the borrower fails to return the loan
within the time frame specified, the lender benefits from the collateral.
Unsecured loans are more in demand in the United Kingdom. An unsecured loan is
one in which the lender cannot demand repayment if the borrower defaults.
Based on provider type, the market is divided into bank, non-banking financial
companies, and others (fintech companies). A bank is a financial institution
that lends money while accepting public deposits and creating demand deposits.
Non-Banking Financial Companies (NBFCs) are financial firms that offer various
banking services but do not have a banking license. A fintech company, on the
other hand, is any company that connects to or uses financial assistance
through the internet, cloud services, mobile devices, or software technology.
The
United Kingdom loan market is fixed and floating, based on interest rates.
Based on the tenure period, the market is divided into less than 5 years, 5-10
years, 11-20 years, and more than 20 years. Based on region, the market is
divided into England, Scotland, Wales, and Northern Ireland.
Key market players in the United
Kingdom Loan Market include:
- HSBC Holdings
plc
- Lloyds Banking
Group
- The Royal Bank
of Scotland plc
- Barclays PLC
- Standard
Chartered PLC
- Nationwide
Building Society
- Santander UK
plc
- Close Brothers
Group Plc
- Tesco Bank
- TSB Bank plc
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"Increasing online loan
channels and using chatbots with AI features is a significant trend expected to
impact growth over the forecasted period. Rising consolidated debts, growing
purchases for home improvement loans, and rising demand for car loans are the
leading factors that will positively impact the United Kingdom Loan Market. Due
to the wide range of loans available online to meet the specific needs of
customers and the growing popularity of the internet channel, the market is
growing.” said Mr. Karan Chechi, Research Director with TechSci Research, a
research based global management consulting firm.
United
Kingdom Loan Market, By Type (Secured Loan and Unsecured Loan), By
Provider Type (Bank, Non-Banking Financial Companies and Others (Fintech
Companies)), By Interest Rate (Fixed and Floating), By Tenure Period (Less than
5 Years, 5-10 Years, 11-20 Years, More than 20 Years), By Region, Competition, Forecast &
Opportunities, 2028F, has evaluated the future growth potential of loan
products and provides statistics and information on
market structure, size, share, and future growth. The report is intended to
provide cutting-edge market intelligence and help decision-makers take sound
investment decisions. Besides, the report also identifies and analyzes the
emerging trends along with essential drivers, challenges and opportunities
present in loan products in the United Kingdom.
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