Indian banks and NBFCs (non-banking financial companies) have until now refrained from exposing themselves to loan tenures longer than 36 months and 48 months under special circumstances.
06 Jun 2023 | 14644 Views | By Autocar Professional Bureau
Electric scooter manufacturer Ather Energy, today announced a new 60-month vehicle loan product that will make EV scooters more affordable. This is also the first time that a finance product with a tenure of 5 years has been rolled out in the EV industry.
Despite a long and successful ...
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Electric scooter manufacturer Ather Energy, today announced a new 60-month vehicle loan product that will make EV scooters more affordable. This is also the first time that a finance product with a tenure of 5 years has been rolled out in the EV industry.
Despite a long and successful track record of vehicle financing, Indian banks and NBFCs (non-banking financial companies) have until now refrained from exposing themselves to loan tenures longer than 36 months and 48 months under special circumstances. Monthly repayment of the loan or EMI (equated monthly installments) under the new 5-year vehicle loan offered by Ather can be as low as Rs 2,999.
Ravneet S. Phokela, Chief Business Officer Ather Energy, said, that affordable vehicle loan products have been a critical last-mile enabler for the growth of the Indian two-wheeler market, adding that the growing popularity of EV scooters in the country has necessitated the need for vehicle loan products with a longer tenure.
Ather has partnered with IDFC First, Bajaj Finance, and Hero FinCorp to offer India’s first 60-month EV two-wheeler loan and expects more retail financiers and banks for this goal.
Three out of every four vehicles sold in India are two-wheelers, and again three of every four of these are bought with loans. Given the relatively premium price of the current generation of EV scooters in the country and its increasing popularity, the time was just ripe for Ather to step in to create a pioneering financial product for its perfectly engineered fourth-generation performance scooters.
“Since November 2022, we have seen the number of customers who opt for loans increase from 20% to 50% now. With the segment poised to grow in the coming years, attractive EV financing schemes are even more relevant and they will be crucial to fuel the industry’s growth in the coming years. I am very happy that Ather is the first to offer a 60-month loan in the Indian EV two-wheeler industry,” Phokela added.