CRIF: Vehicle finance hits ₹20.5 lakh crore; used cars lead growth

By Geetanjali · 18 Oct, 2026

CRIF’s June 2026 data puts India’s vehicle-finance portfolio at ₹20.5 lakh crore, with used-car loans growing fastest and commercial vehicles adding strong fleet demand.

CRIF: Vehicle finance hits ₹20.5 lakh crore; used cars lead growth

CRIF High Mark’s Wheels & Ambition report puts India’s combined vehicle-finance portfolio at ₹20.5 lakh crore as of June 2026, with used-car loans showing the fastest five-year growth. A fresh Autocar Professional analysis published on 18 Oct 2026 has brought the data back into focus; for buyers and fleet operators, the useful point is that the market is expanding unevenly, so an EMI alone does not show the full borrowing risk or cost.

Key takeaways

What the total covers: The ₹20.5 lakh crore figure combines auto, two-wheeler, used-car and commercial-vehicle loan portfolios outstanding as of June 2026.
Fastest growth: Used-car finance grew at a 26.2% five-year compound annual growth rate to ₹1.3 lakh crore by June 2026.
Fleet relevance: Commercial-vehicle loans grew at a 20.1% five-year rate to ₹7.4 lakh crore.
Risk is not uniform: Commercial-vehicle loans recorded 4.1% portfolio-at-risk for payments 31–90 days overdue in June 2026, the highest early-stage figure among the vehicle categories in CRIF’s comparison.
What buyers should remember: Portfolio growth does not set an individual borrower’s interest rate, approval, EMI or total repayment.

What the ₹20.5 lakh crore figure means

The total is a measure of portfolio outstanding, not money disbursed in one quarter and not a single loan product. CRIF’s August 2026 report, based on data as of June 2026, combines auto, two-wheeler, used-car and commercial-vehicle loan portfolios. Added together, those four categories make up the wider “wheels finance” figure also highlighted by Autocar Professional on 18 Oct 2026.

That definition matters because a car buyer may read “vehicle finance” as only new-car credit. The CRIF figure also includes lending for motorcycles, pre-owned cars and working vehicles used by transporters or small businesses. The report says vehicle finance represented 11.4% of the retail credit portfolio in June 2026, the same share it recorded in June 2021.

Used cars are the fastest-growing segment

Used-car finance expanded at a 26.2% compound annual rate between June 2021 and June 2026, the fastest pace among the four categories. Its portfolio reached ₹1.3 lakh crore in June 2026, according to CRIF; Business Standard and Financial Express reported the same findings from the bureau’s report.

CRIF also says the used-car borrower base grew 2.4 times over the five-year period. That points to more formal financing of pre-owned vehicles, but it does not mean every used car has the same loan terms or risk. Vehicle age, valuation, ownership records, insurance, maintenance history and the lender’s repayment conditions can all affect the transaction.

For a buyer comparing a new vehicle with a pre-owned one, the new-versus-used car-loan cost guide is a useful way to keep purchase price, financed amount and total repayment separate.

Commercial-vehicle credit is growing with a risk warning

Commercial-vehicle loans grew at a 20.1% five-year compound annual rate to ₹7.4 lakh crore in June 2026, compared with ₹3 lakh crore in June 2021. CRIF describes the segment as a macro-linked growth engine, reflecting demand for vehicles used in freight, construction and last-mile movement.

The growth is not a blanket signal that fleet credit has become easier or cheaper. CRIF’s June 2026 comparison shows commercial-vehicle loans had 4.1% portfolio-at-risk in the 31–90-day overdue bucket, higher than the other vehicle categories. The report also says the share of commercial-vehicle borrowers with two or more active loans rose to 19.9% in June 2026 from 15.7% in June 2021. These are portfolio measures, not a prediction about an individual operator.

For a small fleet or owner-driver business, the practical check is whether instalments remain workable when freight volumes, fuel costs, repairs or payment cycles change. The FuelPrice fuel-cost calculator can help separate a vehicle’s running-cost estimate from its financing cost.

New-car and two-wheeler lending is still expanding

Auto loans grew at a 17.6% five-year compound annual rate between June 2021 and June 2026. Two-wheeler loans grew at 19.7% over the same period. Two-wheeler lending remains the largest segment by borrower count, with CRIF reporting an increase from about 2.3 crore borrowers in June 2021 to 3.6 crore in June 2026.

CRIF’s Q1 FY27 data also shows the average auto-loan ticket at ₹8.6 lakh. That figure is a market average for originations in April–June 2026, not a quote for a particular car or borrower. The car-loan EMI and prepayment guide explains why a lower monthly instalment can still result in a higher total repayment when the tenure is extended.

What borrowers and fleet operators should check

Define the number being compared: Confirm whether a lender or article is referring to the loan amount, portfolio outstanding, the amount disbursed or the vehicle’s on-road price.
Ask for the full repayment: Keep the principal, interest rate, tenure, processing charges, documentation fees and any optional add-ons visible alongside the EMI.
Check the asset: For a used car, verify the vehicle’s age, valuation, ownership papers, insurance and service record before comparing finance offers.
Stress-test cash flow: Fleet operators should consider fuel, maintenance, downtime and delayed customer payments alongside scheduled instalments. A growing market does not remove those operating risks.
Budget the whole ownership cost: Fuel and maintenance continue after the loan starts. The monthly vehicle-ownership cost guide can help organise those recurring costs.

What to watch next

The CRIF report is a June 2026 snapshot, and its August publication is not a new government rule or a uniform change in lender pricing. The next useful signals will be whether portfolio growth continues outside major cities, whether used-car and commercial-vehicle delinquencies remain controlled, and how lenders price longer or larger loans as vehicle prices and operating costs change.

For readers, the central takeaway is narrow: India’s vehicle-finance market is larger and more segmented than a new-car headline suggests. Used-car credit is growing fastest, commercial vehicles are adding scale with higher early repayment stress, and the right comparison is the complete cost and cash-flow burden rather than the EMI shown first.

FAQ

Is ₹20.5 lakh crore the amount of new car loans issued in June 2026?

No. It is the combined portfolio outstanding across auto, two-wheeler, used-car and commercial-vehicle finance as of June 2026. It includes loans originated earlier and still outstanding.

Which vehicle-finance segment grew fastest?

Used-car finance recorded the fastest five-year growth in CRIF’s comparison, at 26.2% a year between June 2021 and June 2026. It was not the largest segment by outstanding value or borrower count.

Does the market data predict my loan rate or EMI?

No. An individual offer depends on the lender, borrower profile, vehicle, financed amount, benchmark or rate structure, tenure and charges. Actual terms vary and must be checked in the lender’s documents.