Stories
Car loan amounts surge 49% in seven years with longer repayment tenures: CIBIL report
M
Moneycontrol•13-10-2026, 14:19
Car loan amounts surge 49% in seven years with longer repayment tenures: CIBIL report
- •The average passenger vehicle loan in India rose to Rs 8.2 lakh in the first half of 2026, marking a 49 percent increase from 2019 according to TransUnion CIBIL.
- •Average car loan repayment tenures increased by five months to reach 62 months, driven by higher vehicle prices and rising demand for SUVs.
- •First-time borrowers accounted for 39 percent of two-wheeler loan originations in the first half of 2026, dropping 19 percentage points from 2019.
- •NBFCs lead the vehicle financing sector, holding 73 percent of live two-wheeler loans and 37 percent of live passenger vehicle loans as of June 2026.
- •Demand for higher-value cars expanded significantly, with 51 percent of borrowers financing such vehicles coming from semi-urban and rural areas in 2026.
Key Questions Answered
The average passenger vehicle loan amount rose to Rs 8.2 lakh in the first of half of 2026, which is an increase of 49 percent compared to the same period in 2019.
Non-banking financial companies (NBFCs) hold the largest share, accounting for 73 percent of live two-wheeler loans and 37 percent of live passenger vehicle loans as of June 2026.
First-time borrowers accounted for 39 percent of two-wheeler loan originations in the first half of 2026, marking a 19 percentage point drop from 2019. Meanwhile, 43 percent of borrowers already had over two years of credit history.
