NBFCs eye 18-19% growth in two-wheeler loans
Lenders expect two-wheeler financing to expand by 18 to 19 percent through March 2026, as buyers borrow more to purchase costlier motorcycles and scooters. Average loans jumped from 86,111 rupees in fiscal 2021 to 114,929 rupees in the last fiscal year because manufacturers raised prices after raw material costs rose and new pollution standards increased production costs.
Non-bank financial companies control 68.5 percent of the two-wheeler loan market, worth 164,000 crore rupees as of March 2025. These firms grew their portfolios 22 percent annually between fiscal 2021 and 2025 by targeting customers in areas where traditional banks operate less frequently, said Sanjay Agarwal from CareEdge Ratings.
Motorcycle and scooter sales will likely rise 6 to 7 percent this fiscal year after climbing 8 percent last year. Lenders plan to maintain careful approval processes as bad loan rates stay between 3.9 and 4.1 percent, focusing on borrowers with stronger repayment histories.
