Auto NBFC Growth Driven by Diversification, Non-Vehicle Lending

Imagine companies that lend money to people to buy cars.

These companies, called Auto NBFCs, had a better time in the last few months compared to the beginning of the year.

Some are doing really well because they are also lending money for other things, not just cars, like loans for small businesses or for people's homes.

Others that only lend for vehicles are not growing as fast.

For these companies to keep growing, it will be important if more people start buying trucks and if farmers and people in rural areas start doing better financially.

One company, Sundaram Finance, grew the most by lending to both car buyers and small businesses.

Another company, Chola, has the most money out on loans because its different types of loans are growing strong.

So, companies that offer more types of loans are better off right now.