India’s Vehicle Finance Growth Led by Used Cars, Commercial Vehicles

India’s vehicle-loan market is growing in several different ways.

Loans for used cars grew the fastest.

Loans for commercial vehicles were another major source of growth.

Two-wheeler loans still had the largest number of borrowers.

Many two-wheeler and used-car borrowers were using this type of credit for the first time.

People were also taking larger loans for more expensive vehicles.

More loans were being issued in smaller cities and towns.

The report said later-stage repayment problems were improving.

However, commercial vehicle loans still had more early repayment problems than other vehicle-loan segments.