Used car popularity in India aligns with vehicle loans 7.39L/cr
Business
Premium used cars are getting very popular in India, and banks are handing out more vehicle loans.
RBI numbers show loan portfolios jumped from ₹2.85 lakh crore in FY2019 to ₹7.39 lakh crore by FY2026, with growth speeding up from 8.8% in April 2025 to 18.6% this March.
NBFCs vehicle-loan assets near 11L/cr
Nonbank financial companies (NBFCs) are also fueling the trend, with NBFC vehicle-loan assets under management expected to reach nearly ₹11 lakh crore by March 31, 2027.
Used car loans grew faster than new car loans: 15% CAGR versus 11%.
As prices and quality of used cars rise (average price up 36%, fewer kilometers driven), more buyers rely on financing: the share using loans jumped from 13% in FY2021 to 32% in FY2025.