Tamil Nadu with a gross loan portfolio of ₹29,000 crore, accounts for 7.5% of the car finance market share in India, according to data from the credit bureau CRIF High Mark Credit Information Services.
As of June 2018, the State’s portfolio grew 16% compared to last year. Sixty-two per cent of the loan portfolio was concentrated in the districts of Chennai, Kancheepuram, Coimbatore, Tiruvallur, Salem and Madurai.
According to the data, ₹14,000 crore worth of car loans were disbursed in the last one year in Tamil Nadu, financing nearly 2.4 lakh vehicles. “The average ticket size of car loans has moved up over the years. Now, ₹5-10 lakh is the most popular bracket, compared to ₹3-5 lakh a few years ago. The average loan amount for cars in Chennai is about ₹7.7 lakh,” Parijat Garg, vice-president, CRIF High Mark Credit Information Services, said.
Top districts
Across India, Bengaluru, Pune, Hyderabad, Ahmedabad, Mumbai/Thane, Jaipur, Chennai and Surat contributed 20.51% of the overall gross loan portfolio of ₹3.86 lakh crore.
Tamil Nadu and Chennai also did well in terms of non-performing asset, measured in terms of portfolio at risk (PAR). It is a metric that represents the proportion of total gross outstanding loan portfolio which is at risk of default. For Tamil Nadu, it was 0.91% for 91-180 days and for Chennai, 0.78% as on March 2018. At the national level, it was 0.90% in March 2018. According to data from the Tamil Nadu State Transport department, 1.99 lakh cars were registered in 2017-18, against 1.83 lakh in the same period last year. There are a total of 23.61 lakh cars in the State.