HDFC Bank rolls out split-payment EV loan scheme for battery costs

HDFC Bank has launched the Flexi Electric Car Loan, a new financing product designed to ease the purchase burden for electric vehicle buyers by allowing them to finance the vehicle body and battery separately.

The dual-component structure of the loan enables customers to tailor their equated monthly instalments (EMIs) based on individual financial circumstances. Significantly, borrowers can extend the repayment tenure for the battery component beyond the standard vehicle financing period, providing greater flexibility in managing cash flows.

The product addresses a key barrier to EV adoption in India—the higher upfront cost compared to conventional vehicles, with battery costs representing a substantial portion of the total price. By decoupling these components, the scheme allows buyers to spread battery costs over a longer repayment horizon while potentially clearing the vehicle body loan faster.

This initiative aligns with India's push to accelerate electric vehicle adoption and reduce dependence on fossil fuels. As EV penetration grows across the country, financial institutions are increasingly innovating lending products to make such vehicles more accessible to a broader consumer base.

The launch reflects growing recognition among lenders that structured financing solutions can play a pivotal role in driving EV market expansion, particularly in price-sensitive markets where affordability remains a critical decision factor.