The average passenger-vehicle loan amount in India reached ₹8.2 lakh in the first half of 2026, 49% higher than in the first half of 2019, while the average repayment tenure grew to 62 months. Those are market averages reported by TransUnion CIBIL—not a forecast of any individual borrower’s loan amount, approval chances or affordability.
What changed in passenger-vehicle lending?
TransUnion CIBIL’s Shifting Gears 2026 analysis compares personal vehicle financing from H1 2019 to H1 2026. Its reported averages show that both the typical loan amount and repayment period increased:
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| Measure | H1 2019 comparison | H1 2026 | Reported change |
|---|---|---|---|
| Average passenger-vehicle loan amount | About ₹5.5 lakh, implied by the reported 49% increase to ₹8.2 lakh | ₹8.2 lakh | 49% higher |
| Average repayment tenure | 57 months, based on the reported five-month increase | 62 months | Five months longer |
The earlier-period amounts and tenure shown above are arithmetic implications of CIBIL’s reported changes, not separately quoted figures. The release does not establish how much an individual borrower’s loan or term changed. TransUnion CIBIL’s 2026 release attributes the higher passenger-vehicle loan amounts to rising vehicle prices and demand for SUVs and feature-rich cars; it does not show that either factor alone caused the increase.
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CIBIL’s explanation points to the changing mix and price of vehicles: buyers are choosing higher-value cars, including SUVs and feature-rich models, as vehicle prices rise. A higher purchase price can mean a larger amount financed, but the release does not break down how much of the market-average increase came from prices, vehicle preferences or other factors.
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The longer average term means repayment is spread across more months. It does not, on its own, show that a car is more affordable or cheaper overall. The release does not compare interest rates or total interest paid, so neither can be inferred from the loan amount and tenure figures.
Is the trend limited to big cities?
CIBIL says 51% of higher-value car borrowers in H1 2026 were from semi-urban and rural areas, six percentage points more than in 2019. The release uses the label “higher-value” but does not define a rupee threshold for it, so the figure should not be read as applying to every car borrower in those areas.
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How does this compare with two-wheeler lending?
The release reports different patterns for two-wheelers, including borrower experience and lender mix. These figures describe two-wheeler lending, not passenger-vehicle loans:
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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minute| Two-wheeler lending measure | H1 2019 | H1 2026 |
|---|---|---|
| First-time borrowers’ share of originations | 58% | 39% |
| Borrowers with more than two years of credit history | 27% | 43% |
| NBFC share of loans | 73% |
The first-time borrower share fell 19 percentage points over the period. Separately, non-banking financial companies (NBFCs) accounted for 37% of passenger-vehicle loans and 73% of two-wheeler loans, according to CIBIL. A lender’s share of lending does not establish that it offers better pricing or service.
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What do the figures say about the borrower base and repayment?
CIBIL reported that the active passenger-vehicle borrower base had reached 2.5 crore by June 2026—1.7 times its June 2019 level. It also reported 90-plus-day balance-level delinquency of 0.5%. That is a market-level measure and does not describe the payment record or risk of any particular borrower.
What should an individual compare before taking a car loan?
The market averages are context, not a way to calculate an offer. For an actual loan decision, compare the terms in the lender’s offer rather than assuming that a typical amount or tenure will apply to you:
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- Interest rate and whether it is fixed or variable, where applicable.
- Fees and other charges included in the offer.
- Repayment term and resulting monthly instalment.
- Total amount repayable over the full term.
A longer term may reduce the instalment by spreading payments over more months, but the figures in CIBIL’s release do not establish the total cost of a specific loan. Compare the full repayment amount as well as the monthly payment.
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A CIBIL Credit Information Report includes credit facilities such as auto loans and their payment history. Its account section can show the lender and account details, ownership, loan amount, current balance and last-payment date, as well as up to three years of month-by-month payment records. CIBIL says consumers can dispute inaccuracies in their report. See CIBIL’s consumer guidance and its information about credit reports.
Checking a report is not the same as applying for or receiving credit. The lender makes the lending decision; a CIBIL report provides credit-history information and does not itself approve a car loan.
What CIBIL’s figures do—and do not—show
TransUnion CIBIL Managing Director and CEO Bhavesh Jain said in the company’s 13 October 2026 release: “Car ownership is increasingly being shaped by a combination of aspiration and affordability. Consumers are choosing higher-value and feature-rich vehicles, while larger loan amounts and longer tenures are helping make these purchases more manageable.” This is Jain’s characterization of the market. The reported averages do not establish an individual borrower’s affordability, interest rate, total interest cost or likelihood of approval.
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