Commercial vehicle loans show rising early payment delinquencies

Commercial vehicle loans have recorded a portfolio at risk (PAR) of 4.1 per cent in the 31-90 days delinquency bracket as of June 2026, signalling growing stress among borrowers in this critical transport sector segment.

The elevated delinquency rate underscores mounting pressures faced by commercial vehicle operators, including rising input costs, fuel price volatility, and slower freight demand recovery. Early-stage arrears often serve as a leading indicator of potential loan defaults, raising concerns about overall credit quality in the segment.

In contrast, the broader auto loans category continues to demonstrate resilience, maintaining its position as the best-performing vehicle finance asset class. The divergence between commercial and personal vehicle loans reflects the differential impact of economic headwinds on businesses versus individual borrowers.

The data comes as the vehicle finance sector navigates post-pandemic normalisation, with lenders increasingly focusing on portfolio quality and risk management. Industry observers expect continued scrutiny of commercial vehicle portfolios through the second half of the fiscal year, particularly as seasonal demand patterns unfold and interest rate dynamics evolve.