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.