Commercial vehicle loan delinquencies hit 4.1%, CV stress flagged

Commercial vehicle loans recorded the highest early-stage delinquency among vehicle finance products, with 4.1 per cent portfolio at risk for 31-90 day defaults in June 2026, according to a CRIF High Mark report. Used car loans were the fastest-growing segment, with portfolio outstanding rising at a 26.2 per cent CAGR between June 2021 and June 2026.

The overall vehicle finance portfolio grew at 20.1 per cent CAGR, in line with the broader retail credit expansion of 19 per cent. Later-stage delinquencies (91-180 days) improved across all vehicle products, indicating a stabilising risk environment. However, the report flagged a rise in borrowers with multiple active vehicle loans, particularly among commercial vehicle borrowers, with the share of those holding two or more loans increasing to 19.9 per cent in June 2026 from 15.7 per cent in June 2021.

The report also noted premiumisation trends: loans above Rs 15 lakh now account for 29.8 per cent of auto originations, up from 27.6 per cent two years ago. In commercial vehicles, the Rs 5-10 lakh ticket-size segment increased its share to 30.5 per cent of originations in Q1FY27 from 22.4 per cent in Q1FY25, reflecting a shift toward light and medium commercial vehicle financing.