Average car loan amount rises 49 per cent to Rs 8.2 lakh in 7 years: TransUnion CIBIL

Credit information company TransUnion CIBILs latest report on Tuesday said the average passenger vehicle loan amount increased 49 per cent in the last seven years while the average repayment tenure also became longer according to news agency PTIThe average passenger vehicle loan amount rose to Rs 82 lakh in the first half of 2026 an increase of 49 per cent from the corresponding period in 2019 The average repayment tenure also increased by five months to 62 monthsPassenger vehicle segmentCar ownership is increasingly being shaped by a combination of aspiration and affordability Consumers are choosing highervalue and featurerich vehicles while larger loan amounts and longer tenures are helping make these purchases more manageable TransUnion CIBIL MD and CEO Bhavesh Jain saidThe demand for sports utility vehicles SUV and featurerich cars was visible in semiurban and rural areas with 51 per cent of borrowers taking loans for highervalue cars in the JanuaryJune period from these areas according to the report Shifting Gears 2026 Credit Drives Todays MobilityThe active passenger vehicle borrower base expanded 17 times to reach 25 crore as of June 2026 from the 2019 levelDelinquency in passenger vehicle loans measured by balances overdue for more than 90 days declined to 05 per cent from the yearagoperiod benchmark of 145 per cent in June 2019 as per PTITwowheeler segmentBorrowers with established credit histories were increasingly participating in twowheeler financing according to the report Their share rose to 43 per cent in the first half of 2026 from 27 per cent in the corresponding period of 2019 while firsttime borrowers share fell to 39 per cent as per PTIThe active borrower base in the twowheeler segment surged to 33 crore from 17 crore in June 2019 Outstanding twowheeler loan balances increased 32 times to Rs 176 lakh crore in June 2026 while the 90dayplus delinquency rate declined to 14 per cent from 27 per centAlmost 64 per cent of twowheeler loans in the first half of 2026 was from borrowers from semiurban and rural areas The report noted that 43 per cent of borrowers were aged 30 years or younger in the twowheeler loan segmentRural originations among consumers upgrading from twowheelers to cars grew at a compound annual growth rate of 15 per cent since 2019 as against 8 per cent for overall autoloan originationsNBFC lead the financingNonbanking financial companies NBFCs accounted for the largest share of vehicle loans with 73 per cent of twowheeler loans and 37 per cent of passenger vehicle loansWith inputs from PTI