By Gunjan Jain, CFO, Mufin Green Finance
Mufin Green Finance has built an ₹850 Cr EV loan book by betting on first-time owners, with 84% of its portfolio having no formal credit history. This includes gig workers and small fleet operators.
Mufin’s scale has helped position the NBFC as one of India’s most inclusive and influential players in EV financing.
As electric vehicles gain traction in India, financing remains one of the sector’s most significant bottlenecks. While automakers and policymakers have pushed for adoption through subsidies and incentives, mainstream banks remain hesitant, especially for two- and three-wheeler buyers in rural and informal markets. This is where Mufin Green Finance has stepped in, carving out a niche as a lender for customers who are often overlooked by traditional credit systems.
The issue of affordability remains a challenge. While electric two- and three-wheelers have seen widespread adoption, passenger EVs remain an aspiration for the majority of buyers. Higher upfront costs, uncertain resale values, and concerns about battery degradation make traditional lenders wary. As a result, many banks either raise interest rates on EV loans or avoid the market entirely, making it easier to finance ICE vehicles.
Beyond Vehicle Loans: Building the EV Ecosystem
Mufin has tailored its model to fill this gap. Operating in 26 states, the Gurugram‑based NBFC has disbursed over ₹350 crore in EV loans, targeting gig workers, small fleet operators, and rural entrepreneurs who drive last‑mile mobility. But its ambitions extend beyond vehicles. Mufin is among the few private financiers lending to charging‑station developers and battery‑swapping networks, helping create the infrastructure backbone essential for India’s electric‑mobility transition.
Bridging the Subsidy and Policy Gaps
India’s EV journey has relied heavily on schemes like FAME II, but inconsistent timelines and reduced subsidies have created uncertainty for both buyers and financiers. To address this, Mufin is experimenting with models such as battery leasing, subscription‑based vehicle services, and bundled financing that includes insurance, charging, and maintenance, formats designed to reduce user risk and make EV ownership less dependent on government support.
Rethinking Risk for a New Kind of Vehicle
Traditional auto‑loan risk models fail to capture the complexities of EV ownership, where battery health, charging behaviour, and residual value significantly impact loan performance. Mufin uses data-driven frameworks, including telematics, psychometric profiling, and real-time vehicle data, to better assess risk and price loans. These tools could eventually bring down defaults and improve credit access.
Tailored for India’s Fragmented Market
Mufin is developing region-specific risk models and working with local governments to integrate EV loans into MSME and public transport programs, taking into account state-level variations in tax breaks and EV policies. The company’s focus on two- and three-wheelers, which account for the majority of EV sales in India, aligns with segments that can benefit from innovative financing.
By combining financial inclusion with ecosystem‑wide lending and data‑driven risk assessment, Mufin Green Finance is making EV ownership more accessible while helping lay the foundations for a full‑stack clean‑mobility ecosystem in India.
