5 FinTechs fueling Electric Vehicle Loans in India

By Gloria Mathias

As the world grapples with climate change and seeks cleaner energy alternatives, EVs emerge as a pivotal solution to reduce greenhouse gas emissions and combat air pollution.

Despite the continued prevalence of traditional petrol and diesel vehicles in our daily commute choices, there has been a noticeable surge in the proportion of individuals expressing a preference for electric vehicles.

This shift in consumer choice has emerged as a key driver prompting an uptick in Non-Banking Financial Companies (NBFCs) and FinTech firms venturing into the realm of electric vehicle loan financing. Indian NBFCs and FinTech startups have commenced offering EV financing with attractive low-down payment choices, reflecting a responsive shift to meet the rising demand for sustainable transportation solutions.

Listed below are 5 FinTechs disbursing EV loans in India:

• Embifi

Embifi is an embedded finance platform facilitating financing solutions for the Electric vehicle ecosystem in India. It upholds the responsibility of providing a suite of lending solutions to consumers planning to invest in an electric vehicle, aiming for a sustainable and greener environment. Embifi manages loan processes from loan underwriting, loan application, KYC verification, collections, and more.

• LoanTap Financial Technologies 

LoanTap is an online platform committed to delivering customized loan products to millennials. It innovates in a dull loan segment, to deliver instant, flexible loans on consumer-friendly terms to salaried professionals and businessmen. It utilises the latest technology to design flexible loan products. LoanTap’s electric two-wheeler loan helps fund e-bikes in the range of INR 20,000 to INR 2,00,000.

• Mufin Green Finance

Mufin Green Finance is an NBFC with a focus on EV financing. The NBFC has financed EV assets worth more than 300Cr over the last couple of years. The company aims to revolutionise the EV industry in India by offering customised financing solutions to meet the needs of the EV segment. It has disbursed more than INR 300 crores towards electric vehicles, adding more financing products like 2-wheelers, 3-wheel autos, 4-wheelers, electric trucks, and charging infrastructure to our portfolio over the next 12 months.

• Revfin

Revfin is a lending NBFC. The company provides loans to underserved communities living in Tier 2 or 3 towns with no credit history and no banking transactions. It provides loans through its own NBFC as well as through multiple lending partners. Revfin offers loans to independent drivers who buy and operate passenger or cargo electric vehicles for last-mile connectivity.

• VidyutTech

Vidyuttech is a Bengaluru-based digital lending startup that provides EV financing and ownership plans for commercial vehicle fleet owners. The company was founded in 2021 by IIT graduates Gaurav Srivastava and Xitij Kothi. Vidyuttech allows commercial vehicle owners to buy vehicles without owning the battery. It also claims to offer effective interest rates as low as 7% for owning an electric vehicle.

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