In its Shifting Gears 2026 report, TransUnion CIBIL noted that 39% of two‑wheeler loan originations in the first half of 2026 were for first‑time borrowers, down 19 percentage points from pre‑pandemic levels.
More than 60% of borrowers now have at least two years of formal credit history, up from 27% in 2019, while 18% still have less than two years, underscoring a broader credit base.
Consumption‑led borrowing has been the engine of this shift, with nearly one‑third of borrowers carrying mobile‑phone EMIs and consumer durable loans in their credit files—versus 22% in 2019. Gold and agriculture credit products also rose to 16% and 8% respectively.
"Two‑wheeler finance is increasingly becoming part of a longer customer journey, with relevance extending well beyond the initial mobility need," said TransUnion CIBIL managing director and CEO Bhavesh Jain.
Two‑wheeler loans outstanding rose 3.2 times to Rs 1.76 lakh crore, while delinquencies fell 128 basis points to 1.4%. NBFCs now hold 73% of these loans, up 10 percentage points since 2019, and rural markets accounted for 64% of originations.
The trend is prompting lenders to widen credit offerings, with 68% of borrowers taking a second product within three years, and regulators expecting to review risk parameters ahead of the fiscal budget.