HDFC Bank EV loan with seperate terms for battery financing

MUMBAI: HDFC Bank has launched an electric car loan that separately finances the vehicle body and battery, allowing borrowers to repay the battery component over a longer tenure and customise their EMIs. The product is available at more than 9,700 branches nationwide.The loan aims to address the higher upfront cost of EVs, with batteries accounting for a large share of vehicle costs. The battery EMI is designed to be comparable with the running cost of an internal combustion engine (ICE) vehicle. The structure also aligns with emerging battery subscription models. The loan covers EVs from leading manufacturers.According to Arvind Vohra, group head, retail assets and rural banking at HDFC Bank, the product is intended to make EV ownership more affordable. “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,” he said.India's passenger EV share is projected to rise to 15-20% by 2030 from the current 7%, according to reports cited in the bank's release. The Govt's target of 30% electric mobility by 2030, improvements in battery technology and a wider range of models from manufacturers are expected to support adoption.You use AI every day. Now get your AI Quotient. Take the AIQ test.