Car loan business of banks is in top gear, sees annual 18-20% rise

India is now the world's fifth biggest market for passenger vehicles with annual domestic sale of about 3.2 million units

The car loan business of banks is in top gear, thanks to an increase in volume of car sales and a rising preference for financed cars. These, with an increase in cost of vehicles, are helping banks see annual 18-20 per cent rise in the car loan business, double compared to the growth in car sales. 

HDFC Bank, the country’s biggest car loan provider, doubled its business in this segment to Rs 620 billion between FY13 and FY17. That’s compounded annual growth (CAGR) of about 23 per cent. ICICI Bank more than doubled the amount to Rs 250 billion in