According to the report, delinquency levels in the micro-LAP segment rose by 45 basis points (bps) year-on-year to 3.3% as of September 2025. Early delinquencies-measured as loans 90 days or more past due within 12 months on book-increased by 29 bps YoY to 2.2% for originations in the quarter ended September 2024. This is significantly higher than overall LAP early delinquencies of 1.6%.
In the small-ticket housing loan segment, early delinquencies increased by 19 bps YoY to 0.8% for loans originated in the quarter ended September 2024, compared with 0.5% for overall housing loan early delinquencies.
“Proactive monitoring in the micro-LAP and micro-home loan segments will be critical from the lenders’ perspective,” said Bhavesh Jain, managing director, TransUnion CIBIL.
The bureau also flagged emerging stress in the commercial vehicle (CV) and two-wheeler loan segments.
“We are seeing two different scenarios play out. On one side, smaller-ticket loans in these segments have witnessed a rise in delinquencies in the recent quarter,” Jain said. “Lenders need to assess repayment capacity and leverage, as these borrowers typically have multiple credit exposures.”