CIBIL reports larger car loans and longer repayment terms
Average passenger vehicle loan amounts reached INR 8.2 lakh in H1 2026, up 49% from H1 2019, according to TransUnion CIBIL. Average tenure increased by five months to 62 months.
India's passenger vehicle borrowers are taking larger loans over longer periods, according to TransUnion CIBIL's Shifting Gears 2026 report, pointing to the growing role of finance in managing vehicle affordability.
The report puts the average passenger vehicle loan sanction amount at INR 8.2 lakh in the first half of 2026, up 49% from the same period in 2019. Average repayment tenure increased by five months to 62 months.
CIBIL attributes the shift to rising vehicle prices and preference for higher-value, feature-rich vehicles. Its data measures lending, however, and should not be read as a count of new vehicles sold or a direct measure of household income.
The report also finds that 51% of borrowers in its higher-value car-loan category came from semi-urban and rural areas, up six percentage points from 2019. That category concerns borrowers taking another passenger vehicle loan with a sanction amount at least 10% above their previous loan. It does not mean 51% of all premium-car buyers live outside urban markets.
Two-wheeler lending shows a different change. Borrowers with more than two years of credit history accounted for 43% of originations in H1 2026, up from 27% in H1 2019. First-time credit borrowers accounted for 39%, down 19 percentage points over the same period.
Among consumers who originated a two-wheeler loan in the second half of 2022, 68% took another credit product within three years. The finding suggests that a vehicle loan can form part of a broader borrowing relationship, although it does not establish that subsequent borrowing went to the same lender.
The report's portfolio snapshot shows NBFCs accounting for 73% of live two-wheeler loans and 37% of live passenger vehicle loans as of June 2026. Those are shares of live loans, rather than new vehicle sales or the value of outstanding credit.
Its reported balance-level delinquency rates were 1.4% for two-wheelers and 0.5% for passenger vehicles. The measure covers balances overdue by 90–179 days and excludes accounts overdue by 180 days or more, so it should not be presented as the entire default burden.
The report draws on CIBIL credit data. Its passenger vehicle category includes both new and used-car loans, with some smaller auto loans used as a proxy for used-car lending.
