If you’re eyeing a new SUV this year, the numbers you’ll see on your loan offer are going to be higher than they were half a decade ago. The average loan amount has grown to ₹8.2 lakh, and you’re looking at a repayment schedule that stretches to 62 months.
That’s a 49% jump from the ₹5.5 lakh average in H1 2019, and the loan term has lengthened by five months. The lift is largely driven by the surge in SUV and feature‑rich models, which carry premium price tags and demand larger financing.
NBFCs now hold 37% of all passenger vehicle loans, up four percentage points from 2019, while private banks sit at 26%. The shift means more borrowers are turning to non‑bank lenders, often to tap faster approvals or more flexible terms. At the same time, the credit profile of buyers is improving: a larger share of borrowers now have two years or more of credit history, which can help secure better rates.
Policy changes are also feeding the price rise. EV mandates and higher import duties on key components have pushed the sticker price up, and the government’s upcoming 2026 budget is expected to tweak subsidies and tax incentives. For buyers, this means keeping an eye on how new incentives might offset the higher loan amounts, especially in the EV segment.
In short, the loan landscape is evolving: larger sums, longer terms, and a move toward financing through NBFCs. Savvy buyers should compare loan offers from multiple lenders, look for lower interest rates, and factor in the growing cost of newer, tech‑laden models when planning their purchase.