Auto loan short-term delinquencies up

 Auto loan short-term delinquencies up

Auto-loan delinquencies increased for all ticket sizes barring those more than Rs.20 lakh as of June, year-on-year, according to data in ‘How India Lends’ report by CRIF, a credit information company.The portfolio at risk (PAR) for more than 90 to 180 days in June  increased for three straight years in most ticket sizes. In June, loans lower than Rs.5 lakh increased to 1.83% of the total loans in the category from 1.62% in the year-earlier period and 1.36% in June 2023.Delinquencies in loans with a ticket size of between Rs.5 lakh and Rs.10 lakh, too, increased to 0.92% in the reporting  month from 0.73% in June 2023. Credit value between Rs.10 lakh and Rs.15 lakh increased to 0.70% in June 2025 as against 0.55% in June 2023. Default or delay in payments as a share of the advances increased to 0.67% even in Rs.15 to Rs.20 lakh loan size from 0.57% in June 2023. Two-thirds of the originations value as a share of the total loan value were in the Rs.5 lakh to Rs.15 lakh category, as per the CRIF data. Originations value refers to the total sanctioned amount as loans.Stress was seen in the unsecured personal loan segment too. In the 31 to 90  day delinquency bucket, loans that fall between Rs.2 lakh and Rs.10 lakh increased a tad. Delinquencies in loans with ticket size of below Rs.1 lakh reduced to 2.33% in June 2025, but remained elevated in comparison with other ticket sizes. A similar pattern was noticed in the loans with risk of default or delay for more than 91 days and less than 180 days .The data comes at the backdrop of an overall healthy asset quality numbers of about 2.3% as of the first quarter of fiscal 2026. Analyst commentaries had said banks were set to face a challenging second quarter in fiscal 2026 in a low-interest-rate regime, reduced fixed deposit mobilisation and financialisation of household assets.