Auto loans play a vital role in the Indian retail lending market, with the Auto segment being a significant contributor. We have compiled a list of the top 5 NBFC in EV Financing in India in this article post. But, let’s check some of the interesting facts about the role of NBFCs in EV financing.
Commercial vehicles, three-wheelers, and two-wheelers, particularly in the Electric Vehicles category, are among the top entities in credit borrowing. A notable observation is that banks and non-banking financial corporations (NBFCs) finance around 77% of all vehicles in India. According to a report by CEEW, approximately 45% of all three-wheelers sold in India, primarily consisting of battery rickshaws, are electric. Additionally, electric two-wheelers accounted for nearly 54% of all Electric Vehicles (EVs) sold in FY 2021-22.
Top 5 Emerging NBFC Disrupting the EV Financing Industry:
#1 Mufin Green Finance – Founded in 2016, Mufin Green Finance initially began financing E-rickshaws and has since expanded to financing the wider electric vehicle ecosystem. It has emerged as a leading player in EV financing, commanding a market share of 5% in E-rickshaw financing. Its innovative phygital approach has enabled it to maintain a low NPA (Non-Performing Assets) ratio of 1.92%. Mufin Green Finance concentrates on financing three green platforms – Electric Vehicles, Charging Infrastructure, and Swappable Batteries – as part of its EV financing strategy.
#2 Revfin – The goal of Revfin is to create the biggest lending company in India, which it achieves through its award-winning and innovative digital platform. It offers loans to individuals at the bottom of the economic pyramid, typically residing in Tier 2 or 3 towns, with no credit history, limited education, and no banking activity. Revolutionary techniques such as psychometrics, biometrics, and gamification are employed by Revfin to underwrite loans. The entire loan application process is conducted digitally through an app.
#3 Greaves Finance – The company is dedicated to its vision of ensuring that financing does not pose a barrier for anyone who wishes to own an affordable two-wheeler. Furthermore, it is committed to expediting the country’s transition into the Electric Mobility segment.
#4 Manappuram – Manappuram Finance Ltd. is a top Non-Banking Financial Company (NBFC) in India that specializes in gold loans and also provides vehicle loans to simplify life for its customers. Presently, it operates through 5073 branches (including those of its subsidiary companies) located in 28 states and union territories, managing assets worth Rs. 302.6 billion and a workforce exceeding 41,000 employees.
#5 Vedika credit capital – Vedika Credit Capital Ltd is one of the most trusted Non-Banking Financial Company – Microfinance Institution (NBFC-MFI) in India that does not accept deposits. In 2015, it was granted recognition and re-registration by the Reserve Bank of India to operate as an NBFC-MFI. The company is actively involved in lending for electric mobility and has formed numerous co-lending partnerships for the three-wheeler and electric three-wheeler segments.
Conclusion
With the government’s focus on electric mobility and the increasing demand for EVs, NBFCs have stepped up their game to cater to this market’s needs. These top 5 NBFCs in EV financing in India have been disrupting the industry with their innovative and unique approaches. These NBFCs have demonstrated their ability to cater to a wide range of customers, including those from Tier 2 and 3 towns, with no credit history or banking transactions. Overall, the future of EV financing in India looks bright, and NBFCs will continue to play a crucial role in this exciting and rapidly growing industry.
