HDFC Bank, India’s leading private sector bank, has launched a first of its kind Flexi Electric Car Loan, an innovative auto loan product to finance the purchase of Electric Vehicles (EV). The Flexi Electric Car Loan will offer differential loan proportions for the body and battery of the EV vehicle. The battery loan can be repaid over a longer term. This will allow the flexibility to customise the EMI outflow. This loan is now live at the Bank’s more than 9700 branches spread across the country.
The prevailing cost structure of EVs makes the acquisition cost of the vehicles higher compared to ICE (Internal Combustion Engine) vehicles as batteries are the most expensive component of an electric vehicle.
The EMI portion for the battery will be comparable with the running cost of an ICE vehicle. This approach also aligns with evolving battery subscription models which are making EV ownership more accessible and cost-effective.
The Key features of HDFC Bank’s Flexi Green Loan are:
- Curated only for EV purchase – The Flexi Electric Car Loan offering is uniquely created specifically to simplify EV purchase
- Differential Loan Tenor – Curated outflow
- Access to a wide range EV portfolio – Customers will have choice to book EVs of leading OEMs
Commenting on the launch of the new offering, Mr. Arvind Vohra, Group Head – Retail Assets & Rural Banking, HDFC Bank said, “The EV revolution in India is fast gaining momentum, supported by government incentives, push for improved technological landscape and judicious policies. HDFC Bank’s Flexi Electric Car Loan is one more step in that direction as India is set to embrace the EV revolution. Further, we believe the Flexi Electric Car Loan will play a pivotal role in making the EV ownership a cost-effective, seamless and hassle-free journey.”
According to the recent reports, India is expected to see an exponential growth in the EV adoption. The share of passenger cars in EV segment is expected to touch 15-20% per cent by 2030 from the current 7% per cent, making India one of the key markets for passenger EVs. In addition, Government’s mission for 30% electric mobility by 2030 is expected to give fillip to EV adoption in the country, coupled with improved battery technology and expansion in product portfolios by OEMs.