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Personal Mobility Loans Show Stable Asset Quality Despite Economic Pressures
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News18•13-10-2026, 15:15
Personal Mobility Loans Show Stable Asset Quality Despite Economic Pressures
- •Asset quality in personal mobility loans remains stable despite challenges such as higher fuel prices and job losses, according to TransUnion CIBIL.
- •Non-Bank Finance Companies have gained market share compared to banks since the pre-Covid period, particularly in the two-wheeler loan category.
- •Data showed sharp improvements in 90-plus days overdue loans, with two-wheeler defaults dropping to 1.4 per cent and passenger vehicle defaults falling to 0.5 per cent by June 2026.
- •Outstanding balances on two-wheeler loans increased 3.2 times to Rs 1.76 lakh crore, while passenger vehicle loans rose 2.6 times to Rs 11 lakh crore over seven years.
- •Consumer durables lending has overtaken personal mobility loans as the top driver for new-to-credit borrowers, largely due to mobile phone financing.
Key Questions Answered
Asset quality in personal mobility loans remains stable despite challenges like higher fuel prices, with no increase in stress seen in the 30-plus and 60-plus days past-due buckets.
NBFCs have gained market share relative to banks since the pre-Covid period, with their share in two-wheeler loan outstanding increasing to 73 per cent in June 2026 and passenger vehicle share growing to 37 per cent.
Loans overdue by over 90 days showed sharp improvements, dropping to 1.4 per cent for two-wheelers and 0.5 per cent for passenger vehicles by June 2026 when compared with June 2019.
