Auto loan borrowers should save more on their auto loans to boost their cash flows and reduce their debt.
The average loan balance for the top five borrowers has reached Rs 8,700 per month, up from Rs 4,800 in 2016.
This was up from a mere Rs 6,200 per month in 2016, and is expected to rise further as the economy slows.
Auto loans are the most popular types of loans in India, with around Rs 12,500 crore of loans outstanding in March, according to the National Consumer Disputes Redressal Board (NCDRB).
The government, which is considering the recommendations of a panel set up by the Central Bureau of Investigation (CBI), will also look at reducing the interest rates on auto loan interest, as well as providing borrowers with options to refinance at a lower rate.
The NCDRB panel recommended lowering interest rates by at least 50 basis points (bps) in 2019 and at least 30 bps in 2020 to help reduce loan-to-value ratios.
The panel also recommended reducing the amount of loans to be refinanced from a maximum of Rs 2,000 crore in 2019 to Rs 1,500-2,000 crores in 2020, as the market is likely to grow.
The government has also proposed reducing the monthly interest rate from 10 to 5% on auto interest loans, and also introduced a credit limit of Rs 500,000 per month on auto borrowers.
These measures will help boost auto loan growth.
The auto loan market is also facing an adverse impact from a slowdown in the global economy, as manufacturing activity has declined.
The slowdown in manufacturing activity will further impact the Indian economy in the near future, as it would be hard to fill the gap in manufacturing capacity.
The average number of auto loans outstanding has declined by almost half over the past decade.
While the number of loans held by borrowers in March fell by nearly 4%, the total amount outstanding had also declined by close to 2%.
The average loan interest rate on auto and other loans in the country stood at 5.5%, which was up by almost 4% from a year ago.
This has been the case for the past two years, as interest rates have dropped.
However, interest rates are expected to increase in 2019 as the government will look at lowering the interest rate cap for auto loans.
The number of outstanding auto loans will also continue to grow, as a number of lenders have been making new loans.
These new loans are coming to the market at a faster pace than in the past, as lenders are being cautious.
These loans have been seen as a safer investment, as they have a lower deposit rate and do not require a credit score.
According to data compiled by ETN Money, auto loans held at the end of March stood at Rs 13,000-14,000, an increase of about 6% from the end in March last year.
Auto loan balances of borrowers in the first quarter of 2018 stood at around Rs 1.27 lakh crore, which was about 6.7% of the total outstanding loans.
This number has remained stable at around 2.6% of all loans outstanding.
In the last two years the average loan balances in the Indian auto market have declined by nearly 50%.
The data shows that the average auto loan balance in the last quarter of 2016 stood at nearly Rs 3.5 lakh crore.
In March 2017, the average credit score of borrowers stood at a low of 790.
The latest data from the NCDRB shows that there were 531,000 loans outstanding at the start of March.