Auto NBFC Disbursements Rise 20.7% as Lending Diversifies

Auto finance companies lend money to people and businesses to buy vehicles and other assets.

In the first quarter of FY27, they lent 20.7% more money than in the same quarter last year.

However, lending was 4.6% lower than in the previous quarter.

This happened partly because many buyers purchased commercial vehicles early in the previous quarter.

Demand for passenger vehicles and tractors remained strong.

The companies also began lending more for products such as gold loans, home loans and small-business loans.

This helped reduce their dependence on commercial vehicle financing.

Their profits and overall managed assets both grew strongly during the quarter.