Automobile dealers and customers may find it difficult to borrow from banks and non-banking financial institutions (NBFCs) as defaults from the sector could increase significantly after the loan moratorium granted by the Reserve Bank of India (RBI) is lifted. “Dealers and customers both are finding it difficult to borrow, especially on the two wheeler and passenger vehicle front as auto loan NPAs (non-performing assets) were already on a rise pre-covid, which is expected to be further aggravated in line with the moratorium extension," said Ashwin Patil, analyst, LKP securities in a report. “Most of the auto NBFCs which are placed in red zones like Mumbai, Pune etc are yet to function at full strength, thus restricting their day to day work