1 week ago

Used-Car Loan Demand Outpaces New-Auto Financing Growth

More people in India are borrowing money to buy used cars.

Used-car lending grew faster than lending for auto loans over the past five years.

The amount owed on used-car loans reached Rs 1.3 lakh crore in June 2026.

However, used-car borrowers were more likely to have payments overdue for 31 to 90 days.

Longer overdue payments were also somewhat more common for used-car loans than for auto loans.

Used-car borrowers also had more personal loans, credit cards, and other unsecured debts.

Lenders continued funding used cars despite these risks.

The report said the overall quality of vehicle-related loans was becoming more stable.

Key facts

Used-car finance outstanding: Rs 1.3 lakh crore in June 2026, up from around Rs 40,000 crore in June 2021.
Used-car finance growth: 26.2% compound annual growth rate over five years.
Auto-loan growth: 17.6% compound annual growth rate, reaching Rs 9.9 lakh crore in June 2026 from Rs 4.4 lakh crore.
31-90-day overdue rate: 3.1% for used-car loans versus 2.1% for auto loans.
91-180-day overdue rate: 1% for used-car loans versus 0.6% for auto loans.
Unsecured debt exposure: 9.2% of used-car borrowers had unsecured consumption loans versus 6.4% of auto-loan borrowers.
Commercial-vehicle finance: Grew 20.1% annually to Rs 7.4 lakh crore from Rs 3 lakh crore.

NDTV · 1 week ago