{
  "id": 3101863,
  "title": "Multiple vehicle loans, bigger tickets raise risk",
  "url": "https://urgent.news/2026/08/24/multiple-vehicle-loans-bigger-tickets-raise-risk",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-24T19:10:01.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/banking/finance/banking/rising-multiple-vehicle-loans-bigger-ticket-sizes-raise-lender-risk/articleshow/133477699.cms"
  },
  "original_language": "en",
  "account": "Kolkata: In the world of vehicle financing, there's a growing trend of customers taking multiple loans, with the average loan amount per borrower also on the rise. This shift could potentially amplify credit risks for lenders. The concentration of risk is particularly noticeable in the commercial vehicle finance sector, which has seen a 20% compound annual growth rate, reaching ₹7.4 lakh crore by the end of June, according to data from Crif High Mark. A significant portion of commercial vehicle loan borrowers, 19.9%, now have two or more loans compared to 15.7% a year earlier. On average, borrowers seeking passenger taxis to heavy trucks are now exposed to ₹7.8 lakh in vehicle loan debt, up from ₹6.4 lakh. Experts warn that exposure to multiple loans requires close monitoring at the individual level, as defaults can have ripple effects. With the majority of vehicle finance borrowers having credit exposures of ₹60 lakh or more, lenders need to be vigilant when extending loans, particularly for borrowers with high-ticket loans like housing finance combined with vehicle financing. Bank of Baroda's chief economist, Madan Sabnavis, emphasizes the importance of thorough credit history checks and ongoing monitoring for small-scale operators. Additionally, nearly half of vehicle finance borrowers hold credit exposures exceeding ₹60 lakh, indicating the presence of strong and established credit relationships driven by large loans. The commercial vehicle loan segment carries the highest early bucket stress, with a growing microsegment of multi-loan borrowers highlighting the need for deeper bureau checks to assess concentration risks. The trend extends beyond commercial vehicles, as auto loans for personal cars have also seen an increase in borrowers holding multiple loan accounts, rising from 5.6% to 6.8% and 4.8% to 6.7% respectively over the past year. This trend is attributed to individuals seeking higher leverage, driven by rising premiumisation in the auto sector. Auto loans, used to purchase personal vehicles, have witnessed a sharp rise in borrower-level exposure, with the average loan growing from ₹3.8 lakh to ₹5.9 lakh. This development reflects the increasing consumerism across various forms of credit, including housing, personal loans, credit cards, and vehicle financing.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}