Mobile EMIs Help Build Credit, Lowering Two-Wheeler Loan Defaults

Times of India - Business · business

Consumer durable loans, like buying smartphones on EMI, are instrumental in building credit histories for younger borrowers, leading to a significant drop in two-wheeler loan delinquencies. These defaults fell to a seven-year low of 1.4% in June 2026 from 2.7% in June 2019. First-time borrowers now represent a smaller portion of two-wheeler loans, with a larger percentage of applicants possessing established credit records. This trend indicates that consumption-led borrowing is increasingly shaping a more robust credit profile for consumers seeking vehicle finance.