MUMBAI: Consumer durable loans, such as those for buying a mobile phone on EMI, are helping lenders build credit histories for younger borrowers, contributing to a decline in two-wheeler loan delinquencies to a seven-year low of 1.4% in June 2026 from 2.7% in June 2019, according to TransUnion Cibil.First-time borrowers accounted for 39% of two-wheeler loan originations in the first half of 2026, down 19 percentage points from pre-pandemic levels. Meanwhile, 43% of borrowers had more than two years of formal credit history, up from 27% in 2019. Another 18% had less than two years of credit history, indicating more than 60% of borrowers had an established credit record, according to TU Cibil’s latest report, Shifting Gears 2026: Credit Drives Today’s Mobility.Consumption-led borrowing has contributed to this shift. Nearly a third of two-wheeler borrowers had consumption credit products in their credit histories in the first half of 2026, up from 22% in the corresponding period of 2019. Consumer durable loans featured in the histories of 18% of borrowers and gold loans in 16%, credit cards in 12% and agriculture-related credit products in 8%.NBFCs held 73% of outstanding two-wheeler loans.
✍️ Vikrant Kharwar
Vikrant Kharwar is the Founder and Editor of News Us Media. He writes about trending news, sports, entertainment, technology, and viral stories. His goal is to make news simple, informative, and easy to understand for readers across the United States and around the world.
