JAMMU, Oct 26: HDFC Bank has launched a new Flexi Electric Car Loan, designed specifically to finance the purchase of electric vehicles (EVs) and make ownership more affordable through flexible repayment options.
The bank said the new loan product would offer separate financing arrangements for the vehicle body and its battery, allowing customers to repay the battery loan over a longer tenure. This structure is intended to provide greater flexibility in managing monthly equated monthly instalments (EMIs) and reduce the financial burden associated with purchasing an electric car.
The product is now available across more than 9,700 HDFC Bank branches throughout the country.
Electric vehicles generally have a higher upfront purchase cost than conventional internal combustion engine (ICE) vehicles, largely because batteries account for a significant portion of their overall cost. HDFC Bank’s new financing model aims to address this challenge by allowing customers to structure repayments according to their financial needs.
Under the proposed arrangement, the EMI component associated with the battery is intended to be comparable to the running costs of a conventional petrol or diesel vehicle, potentially making the transition to electric mobility more financially manageable.
The Flexi Electric Car Loan has been developed exclusively for electric vehicle purchases. Its key features include separate financing proportions for the vehicle body and battery, flexible loan tenures to customise repayment obligations, and access to a wide range of electric cars manufactured by leading original equipment manufacturers (OEMs).
The bank said the product was designed to simplify the EV purchasing process and offer customers greater choice in financing their vehicles. The flexible repayment structure also aligns with emerging battery subscription models, which aim to reduce the initial cost of electric vehicle ownership.
Commenting on the launch, Arvind Vohra, Group Head – Retail Assets and Rural Banking at HDFC Bank, said India’s electric vehicle revolution was gaining momentum, supported by government incentives, technological improvements and evolving policy measures.
He said the Flexi Electric Car Loan represented another step towards facilitating the country’s transition to electric mobility. According to Vohra, the product is expected to play an important role in making EV ownership more cost-effective, seamless and convenient for customers.
India’s electric vehicle market is expected to witness significant growth in the coming years as consumers increasingly consider alternatives to conventional vehicles. According to the market projections cited by the bank, electric passenger cars could account for 15–20 per cent of the segment by 2030, compared with approximately 7 per cent at present.
The government’s broader ambition of achieving 30 per cent electric mobility by 2030, along with improvements in battery technology and the expansion of electric vehicle portfolios by manufacturers, is expected to support wider adoption.
With its new Flexi Electric Car Loan, HDFC Bank aims to address one of the major barriers to EV adoption — the high initial purchase cost — while providing customers with greater flexibility in managing repayments. The initiative reflects the growing role of financial institutions in supporting India’s transition towards cleaner and more sustainable transportation.