HDFC Bank Launches Flexi Electric Car Loan to Make EV Ownership More Affordable

Srinagar, Oct 26, KNT: HDFC Bank has launched a Flexi Electric Car Loan designed to make electric vehicle (EV) ownership more affordable by offering separate repayment structures for the vehicle body and its battery, allowing customers greater flexibility in managing their monthly instalments.

The new loan product is available across the bank’s more than 9,700 branches nationwide, according to the bank’s announcement.

Under the facility, the vehicle body and battery can be financed through different loan tenures, with the battery component eligible for a longer repayment period. The structure is intended to provide flexibility in monthly equated instalments (EMIs), addressing one of the major cost barriers to electric car ownership.

Electric vehicles generally have higher upfront costs than conventional internal combustion engine (ICE) vehicles, with the battery accounting for a significant share of the purchase price. HDFC Bank’s financing model seeks to spread the battery cost over a longer period, with the bank stating that the battery-related EMI could be comparable to the running cost of a conventional petrol or diesel vehicle.

The bank said the product has been developed specifically for electric car purchases and will provide customers access to EV models offered by leading automobile manufacturers. The announcement also noted that the financing structure aligns with emerging battery subscription models aimed at making electric mobility more accessible.

Commenting on the launch, Arvind Vohra, Group Head – Retail Assets and Rural Banking at HDFC Bank, said India’s electric mobility transition was gaining momentum with government incentives, technological improvements and supportive policies. He said the new loan product was intended to make EV ownership more cost-effective and convenient.

The bank cited projections indicating that electric vehicles could account for 15–20 per cent of passenger car sales in India by 2030, compared with a current share of around 7 per cent, as adoption expands alongside improvements in battery technology and a wider range of models from automobile manufacturers. [KNT]

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