
By Ashok Mittal, CEO, Prest Loans, Brajendra, CEO, Finayo, Bakesh, COO, Yogesh CAO, Kamal CTO, Sanjay Mentor.
New Delhi (India), March 29: India is inching toward becoming a fully Electric Vehicle (EV) nation by 2030 with optimistic sales figures and the unveiling of a host of new models by automobile manufacturers.
According to a recent report by research firm JMK Research and Analytics, the consolidated sales of EVs in the country clocked 50,000 units in December last year, registering a 240 per cent Year Over Year (YoY) growth compared to December 2020.
With the Omicron lead wave subsiding coupled with declining technology costs, EV shipment figures in India are expected to continue to reach new heights in the coming months. The segment’s growth will also be fueled by the emergence of new disruptive business models aimed toward the common objective of driving EV adoption in the country.
While initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) Phase II scheme, which boasts a budget of Rs 10,000 crore to offer subsidies to EV buyers across different segments, are in place, the need of the hour is to provide hasslefree, customised financing options to consumers.
According to a recent report by the country’s apex public policy think tank, NITI Ayog, financial institutions would have to lend an estimated Rs 40,000 crores by 2025 and Rs 3.7 lakh crores by 2030 to drive the adoption of EVs among the masses.
Banks and NBFCs are also reluctant to finance EVs owing to associated business models and asset risks and the nascency of the EV sector. Also, in some cases, where financing is available, a significant chunk of EV buyers do not align with the loan terms (high-interest rates, lower tenures) compared to ICE vehicles.
How startups like FINAYO are transforming the lending space
In such a scenario, revolutionary startups like FINAYO, which leverage cutting-edge technologies including AI and Machine Learning, are paving the way to mitigate the financial bottlenecks in the country’s EV segment.
According to Mr Brajendra Singh Tomar, founder and CEO of FINAYO, different NBFCs prefer to finance other EV models ranging from two-wheelers to SUVs to commercial vehicles, and FINAYO aims to bring all under one umbrella to cater to a larger pool of EV buyers in the country.
Mr Tomar also opines that the impressive Fi-Men solution, which offers a range of loan offers to consumers from different financial institutions with just the QR code scan, is a win-win proposition for the OEMs, lenders and customers.
Leveraging trendsetting technologies, FINAYO’S team has ensured that the platform offers customised financing options based on both the EVs and the credit history of EV buyers. The platform utilises the state of the art Asset Business Rule Engine and Lender Business Rule Engine in that regard. With this, Banks and NBFCs garner a bird’s eye view on the spending behaviour of consumers to furnish them with convincing loan offers in a matter of minutes.
Prest Loans aims to collaborate with FINAYO to offload the tedious and complex customer risk and asset assessment process for a swift and convenient buying experience for potential EV buyers. In our strategic collaboration, we would also like FINAYO to cover the untapped EV markets in the country to accomplish India’s 2030 EV objective jointly.
Founder & CEO of Prest Loans, an RBI registered NBFC, Ashok Mittal, is an industry veteran with over three decades of experience in Banking and Financial Services. He has also been a prominent speaker during the seminars of prestigious organisations like FICCI, Assocham, PHD Chamber of commerce, Elets etc., representing the industry. His views are widely covered in print and electronic media.
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