Fintech firms gets innovative to boost up EV financing

Share Us

983
Fintech firms gets innovative to boost up EV financing
22 May 2022
5 min read

News Synopsis

With the popularity of electric vehicles (EVs), specialised EV-financing fintech firms are giving clients unique solutions. The Union transport ministry is leading the charge to have the Reserve Bank of India designate this industry as a priority sector. According to sources, the business could be granted favoured financing status within the next six months.

Several fintech firms, including Rev Fin, Oto Capital, and Three Wheels United, have pioneered the financing of electric vehicles. Officials claim that since mobility restrictions were lifted, volume has increased by at least 5- 8 times.

Sameer Aggarwal, founder of RevFin Services, a digital lending platform said, "More than 85% of our customers have never taken a loan and have no credit record. It is that much more difficult to underwrite such customers. Yet, through the use of biometrics and psychometric parameters, we study each customer's personality and repayment patterns. We are seeing lower NPAs."

Fintech companies partner with banks to provide new financing options, such as the ability for clients to opt out of electric vehicles within 12-24 months of purchase and lower EMIs due to low interest rates. "As more fintech companies insure assets, we've started playing a bigger role in EV financing, especially in the retail personal sector, where defaults are lower," said OTO Capital co-founder Sumit Chhazed. In FY22, we financed 3,000 electric vehicles, up from 200 in FY21, he stated.

TWN News Network