Commercial-vehicle loans grow 20.1% annually as used-car finance and premiumisation accelerate
CRIF High Mark reports strong diversification in India’s vehicle-credit market, with used-car lending growing faster than new-auto finance and larger-ticket loans gaining share. Rising multi-loan exposure among commercial-vehicle borrowers also flags a need for closer credit-risk monitoring.
What happened
Crif High Mark · CRIF High Mark says India’s vehicle lending is diversifying, led by commercial-vehicle loans and rapidly formalising used-car finance. Rising
Key facts
- Commercial vehicle loan CAGR: 20.1% (June 2021-June 2026)
- Used-car loan CAGR: 26.2%
- Used-car borrowers: 2.4x increase
- Two-wheeler active borrowers: 2.3 crore to 3.6 crore
- Auto-loan exposure per borrower CAGR: 9.2%
- Auto loans above Rs 15 lakh: 27.6% in Q1 FY25 to 29.8% in Q1 FY27
- Vehicle loan originations: up 17.1% YoY in Q1 FY27
- Average auto-loan ticket size: Rs 8.6 lakh
- Commercial-vehicle borrowers with 2+ active loans: 15.7% to 19.9%
Why this matters
Partnerships or acquisitions in used-car marketplaces, credit-scoring technology, and commercial-vehicle risk analytics could capture premiumisation-led loan growth while improving portfolio controls.
What to watch
- Commercial-vehicle delinquency, 30-plus-days-past-due and restructuring trends, especially among borrowers with multiple active loans.
- Used-car versus new-vehicle loan approval rates, average ticket sizes and loan-to-value ratios.
- RBI policy-rate changes and auto-loan lending-rate pass-through.
- Diesel prices, freight rates, e-way bill volumes and fleet utilisation indicators.
- Growth in certified-preowned dealer inventory, used-vehicle auction prices and residual-value trends.
- Insurance attachment rates and warranty/service-package penetration on financed vehicles.
- Expand used-vehicle sourcing, refurbishment and certified-preowned inventory where financing approval rates are improving.
- Bundle financing with insurance, warranties, servicing and accessories to capture premium-ticket economics rather than relying only on vehicle margins.
- Segment commercial-vehicle customers by existing loan exposure, repayment history, fleet utilisation and freight-linked cash-flow risk before extending retail credit or B2B payment terms.
- Prepare value-oriented offers for borrowers facing higher EMIs, including maintenance subscriptions, trade-in programs and lower-cost replacement parts.
- Monitor lender partnerships for changes in approval rates, loan-to-value ratios, bureau-score cutoffs and dealer subvention requirements.