Archive · 21 Dec 2025
Stress Builds in Commercial Vehicle Loans
Banks and non-bank finance companies are seeing more people struggling to pay back loans for commercial vehicles.
This is happening because things like fuel prices, maintenance costs, and how much vehicles are being used are changing a lot.
While loans for cars are doing okay, loans for two-wheelers are seeing more problems.
Experts are watching this closely to see how the situation changes, especially after the festive season.
They think that the problems might get better by the end of the year because of improvements in manufacturing activity.
Commercial vehicle loans are seeing increased delinquencies due to fluctuating freight rates and higher costs.
Auto loans remain stable with a 90+ DPD of 0.6%, while two-wheeler loans have seen a rise in delinquencies.
Banks are taking a measured approach to commercial vehicle loans, with NBFCs seeing a 30-40 basis points increase in 90+ DPD.
Credit growth for vehicle loans rose by 12.5% in October 2025, up from 7.3% the previous month.
Analysts believe the stress in the CV segment reflects broader supply chain inefficiencies and demand volatility.
- Who
- Banks and non-bank finance companies
- What
- Increasing stress in commercial vehicle loans
- When
- October 2025
- Where
- India
- Why
- Volatile utilisation levels, fluctuating freight rates, longer receivable cycles, and higher fuel and maintenance costs
- Segment
- Commercial Vehicle (CV)
- Delinquency Rate (CV)
- Increasing
- Auto Loan Delinquency (90+ DPD)
- 0.6%
- Two-Wheeler Loan Delinquency (90+ DPD)
- 2.2%
- Credit Growth (Bank Credit to Vehicles)
- 12.5% (October 2025)
- Credit Growth (October 2024)
- 12%
- Analysts' Concern
- Supply chain inefficiencies and demand volatility
- Banks' Approach
- Measured approach to CV loans