HDFC Bank, India’s largest private sector lender, on Sunday said it had launched the “Flexi Electric Car Loan”, which finances the body and battery of an electric vehicle (EV) in different proportions and allows the battery portion to be repaid over a longer term.
The bank described the product as the first of its kind and said the structure allows customers to customise their equated monthly instalment (EMI) outflow.
Batteries are the costliest component of an EV, making these vehicles more expensive to acquire than internal combustion engine (ICE) vehicles, the bank said.
The EMI on the battery portion will be comparable to the running cost of an ICE vehicle, it said, adding that the approach aligns with evolving battery subscription models.
The loan is meant only for EV purchases and covers vehicles from leading original equipment manufacturers (OEMs). It is available at the bank’s more than 9,700 branches.
“The EV revolution in India is fast gaining momentum, supported by government incentives, a push for an 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 EV ownership a cost-effective, seamless and hassle-free journey,” said Arvind Vohra, group head, retail assets and rural banking, HDFC Bank.
