15th, March 2025
The Finance Industry Development Council (FIDC), the leading organization for non-banking financial companies (NBFCs) involved in electric mobility, has called on the government to establish a dedicated fund that would provide loans at reduced interest rates, supported by government subsidies and incentives similar to the FAME and Production-Linked Incentive (PLI) programs.
To tackle the existing challenges, the FIDC has suggested creating a specialized fund for NBFCs, potentially supported by SIDBI or NABARD, which would offer subsidized interest rates for electric vehicle (EV) loans.
This initiative aims to enhance the accessibility of affordable EV financing, thereby assisting both lenders and consumers in overcoming obstacles to EV adoption.
Currently, many financiers encounter difficulties in scaling up EV financing due to concerns about battery technology, resale values, and depreciation risks associated with the rapidly evolving EV landscape. The need for standardization and comprehensive data on battery performance under Indian conditions has been emphasized, given the swift advancements in EV battery technology.
If the FIDC’s proposals are put into action, they could provide essential clarity and security for lenders, encouraging increased investment in the expanding EV market.
