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Business News›Prime›Markets›Indians are borrowing for SUVs instead of homes. Lure of bigger cars, lower EMIs fuelling it.
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Markets

Indians are borrowing for SUVs instead of homes. Lure of bigger cars, lower EMIs fuelling it.

Indians are borrowing for SUVs instead of homes. Lure of bigger cars, lower EMIs fuelling it.
Indians are borrowing for SUVs instead of homes. Lure of bigger cars, lower EMIs fuelling it.
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Maruti Suzuki Jimny SUV showcasing at Auto Expo 2023, India Expo Mart.

Synopsis

As per the RBI data, more people are borrowing money to buy SUVs than houses. Vehicle loans have increased by 137% in three years as against a 47% rise in home loans, which have seen a decline in share from 52% pre-pandemic. Analysts believe the trend may continue due to the ticket size and aspirations of Indians.

Sunita Singh is a 30-year-old working professional who wanted to buy a house in Mumbai. But looking at the overall prices of a one-BHK flat in the city’s suburbs, she figured out she would require borrowing at least INR90 lakh and pay a hefty EMI every month for the next 15 years. She changed her mind and decided to go for a Hyundai Venue – a mini SUV. She now pays an EMI of INR37,000, which will go on for the next 5 years but doesn’t mind doing
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