How buying mobile phones on EMI is leading to reduced defaults on two-wheeler loans

Consumer durable loans have aided lenders in establishing credit histories for younger borrowers over recent years. Two-wheeler loan delinquencies have significantly declined to 1.4% in June 2026 from 2.7% in June 2019. A notable share of borrowers has established credit profiles, leading to increased vehicle lending and reduced delinquencies. The share of borrowers with prime credit scores rose markedly during this period.