India’s electric vehicle market has reached an inflection point in 2026, with financing companies playing the critical role in making this transformation possible. In fiscal year 2025, over two million electric vehicles were sold in India, with the vast majority purchased through vehicle loans rather than cash.
The EV financing market has evolved dramatically. Market projections indicate growth from USD 2.37 billion in 2025 to nearly USD 20 billion by 2030, representing a compound annual growth rate exceeding fifty-three percent. Early in the market’s development, financiers were hesitant about EVs due to concerns about residual values and battery degradation. Loan-to-value ratios were ten to thirty percent lower for EVs, interest rates ran one to nine percent higher, and tenures were six to eighteen months shorter compared to conventional vehicles.
By 2026, the landscape has transformed remarkably. Government initiatives like the PM E-DRIVE Scheme allocating Rs 10,900 crores and the RBI’s inclusion of EV financing under Priority Sector Lending have reduced risk premiums. Today’s EV borrowers enjoy interest rates comparable to conventional vehicles, with many banks offering rebates for EV purchases. Loan tenures have extended to eight years, making monthly payments more affordable.
1. State Bank of India (SBI)
State Bank of India, the nation’s largest public sector bank, has emerged as a crucial player through its specialized Green Car Loan product. SBI provides zero processing fees for EV purchases and offers interest rates from 9.10 to 10.15 percent per annum. The bank provides up to one hundred percent financing of the vehicle’s on-road price, with flexible tenures extending to eight years.
SBI’s extensive branch network ensures access even in tier-two, tier-three, and rural markets. Streamlined documentation and approval processes deliver decisions within twenty-four to forty-eight hours for pre-qualified customers. In 2025, SBI signed a memorandum with VinFast to extend retail credit through dealer networks, demonstrating commitment to point-of-sale financing models.
2. HDFC Bank
HDFC Bank has positioned itself as the technology-forward leader in EV financing. Offering interest rates from 9.20 percent per annum with up to one hundred percent financing on select models, HDFC provides tenure flexibility from twelve to ninety-six months. Digital processing completes loan approvals in thirty minutes, with ten-second approvals for pre-approved customers enabling same-day delivery.
The bank’s Easy Top-Up Loans allow existing customers to obtain additional EV funding without documentation. Various EMI structuring options include step-up, bullet, and balloon schemes. With loan amounts up to Rs 10 crore, HDFC serves both retail and commercial segments. In July 2025, Kotak Mahindra Prime became Tesla’s first preferred Indian financier, integrating approvals into Tesla’s app.
3. ICICI Bank
ICICI Bank combines technological sophistication with competitive rates starting from 9.10 percent per annum. Providing up to one hundred percent on-road funding for certain models, the bank’s digital infrastructure enables disbursement within twenty-four to forty-eight hours for top-tier profiles. ICICI has been particularly proactive in electric two-wheeler and three-wheeler segments, making it a preferred choice for urban EV buyers through its comprehensive mobile banking platform.
4. Bajaj Finance
Bajaj Finance, with assets under management exceeding Rs 3.3 lakh crores and over eighty-three million customers, brings formidable distribution and product innovation. The company’s strength lies in extensive dealer partnerships enabling point-of-sale financing and same-day vehicle delivery. Flexi loan products accommodate variable income patterns, valuable for self-employed individuals.
The International Finance Corporation extended USD 400 million to Bajaj specifically for EV portfolios. The company uses alternative credit assessment including mobile wallet flows and utility payment regularity, expanding access beyond formal-salary segments that traditional banks serve.
5. Mahindra & Mahindra Financial Services
Mahindra Finance focuses on rural and semi-urban markets with over thirteen hundred branches and three decades of experience. The company’s expertise in agricultural equipment and commercial vehicle financing translates directly to electric three-wheelers and light commercial vehicles. Offering doorstep service with minimal documentation and two-day approvals, Mahindra Finance introduces flexible EMI structures aligned with agricultural income patterns and harvest seasons.
6. Tata Capital
Tata Capital, with market capitalization of Rs 1.52 trillion, benefits from association with Tata Motors. Beyond vehicle loans, the company structures comprehensive packages encompassing vehicles, charging equipment, and working capital for fleet operators. This holistic approach and early access to new Tata vehicle launches position Tata Capital as a preferred partner for the Tata EV ecosystem.
7. Shriram Finance
Shriram Finance specializes in commercial vehicle financing with particular strength in trucks and buses. In March 2025, the Asian Development Bank and Shriram closed USD 150 million targeting MSME and EV credit expansion. The company has partnered with manufacturers like Montra Electric for customized consumer products. Shriram’s specialized underwriting models account for lower EV operating costs and government incentives, serving entrepreneurs and small operators.
8. Revfin
Revfin represents fintech-enabled democratization of EV access, focusing on independent drivers for last-mile connectivity. Serving customers purchasing entry-level vehicles for livelihood, Revfin employs alternative credit assessment analyzing mobile usage patterns and digital payment behaviors. Digital-first processes complete loans within hours rather than days, achieving scale through volume and efficiency in delivery and ride-hailing segments.
9. Ecofy (Greaves Finance)
Ecofy distinguishes itself as India’s first exclusively green-focused retail NBFC. Specializing in electric two-wheelers, three-wheelers, and rooftop solar, the company offers full life-cycle financing including battery replacement. Paperless digital processes deliver approvals within two days. Customer testimonials highlight low interest rates, flexible EMIs, and minimal documentation. Ecofy’s exclusive green focus ensures every loan contributes to emissions reduction.
10. Three Wheels United / evfin
Three Wheels United, through lending partner Shabri Investments and consumer brand evfin, specializes in light electric vehicle financing starting with auto rickshaws. Targeting low-income clients purchasing vehicles for livelihood generation, the company offers minimal down payments. Drivers report doubled income through fuel cost reductions. The evfin brand extends to electric two-wheelers with seamless experiences, quick approvals, and comprehensive digital management combining financing, insurance, warranty, and charging support.
The Evolving Landscape of EV Financing in India
The transformation of India’s EV financing landscape from 2024 to 2026 reflects the maturation of both the vehicle market and the financial sector’s understanding of electric mobility. Several key trends characterize this evolution and will shape the market’s future trajectory.
The fundamental shift in EV risk assessment stands as the most significant development. Early concerns about residual values and battery degradation are being addressed through sophisticated data collection and analysis. Lenders now pilot algorithms that parse battery State of Health metrics, charging cycles, and telematics-verified mileage, enabling tighter loan-to-value bands and more competitive interest rates. Improved diagnostic tools at dealer yards speed vehicle valuation processes, making auction-based price discovery viable even in semi-urban regions where such infrastructure was previously absent.
The used EV market represents an emerging frontier. Certified pre-owned programs with warranty extensions are demystifying battery health concerns and drawing first-time buyers priced out of new models. While used vehicles accounted for smaller market share in 2024, they are forecast to register compound annual growth rates exceeding fifty-five percent through 2030. This creates significant opportunity for lenders developing expertise in this segment, with better diagnostic capabilities enabling more accurate residual value predictions and risk pricing.
Fintech disruption has accelerated dramatically. Companies like Revfin and Ecofy are capturing digitally native borrowers through biometric KYC processes, electronic signatures, and sub-twenty-four-hour fund disbursal. As fintech portfolios achieve scale, securitization of loan books lowers cost of funds, enabling sharper pricing that challenges traditional institutions. Banks retain advantages in low-cost deposit bases and regulatory frameworks, but fintech challengers force the industry toward faster innovation and better customer experiences.
OEM-captive finance arms and strategic partnerships between manufacturers and financial institutions have become increasingly sophisticated. These arrangements integrate financing seamlessly at the point of sale, blend attractive rates with comprehensive service packages, and lock in aftermarket revenue. The frictionless experiences they create set new customer expectations that independent lenders must meet to remain competitive. Examples include Kotak Mahindra Prime’s integration with Tesla’s app and SBI’s partnership with VinFast, demonstrating how financing is becoming an embedded part of the vehicle purchase journey rather than a separate transaction.
The product innovation landscape continues expanding. Beyond standard vehicle loans, lenders are developing battery-as-a-service financing models that separate vehicle and battery ownership, reducing upfront costs. Fleet financing products combine vehicle acquisition, charging infrastructure, and working capital into comprehensive packages. Some lenders are experimenting with usage-based financing where repayments align with kilometers driven or revenue generated, particularly appealing for commercial operators whose income directly correlates with vehicle utilization.
Government policy continues providing critical tailwinds. The PM E-DRIVE Scheme’s Rs 10,900 crore allocation demonstrates sustained commitment to electric mobility. The Reserve Bank of India’s Priority Sector Lending classification for EV loans has encouraged banks to allocate capital preferentially to this segment, often at subsidized rates. State-level incentives including road tax waivers and registration fee exemptions directly reduce on-road prices, improving loan-to-value ratios and making financing more accessible.
Institutional capital inflows through green bonds and blended-finance vehicles are fundamentally changing the cost of capital for EV lending. International development institutions including the Asian Development Bank, International Finance Corporation, and Green Climate Fund are extending concessional credit lines to Indian lenders specifically for EV portfolios. This capital carries lower interest rates and longer tenures than commercial sources, enabling lenders to pass benefits to borrowers through better terms. The validation that these institutions provide also reduces perceived risk, encouraging domestic capital to flow into the sector.
Looking toward the remainder of 2026 and beyond, several developments will shape the market. The entry of Tesla and other global manufacturers will likely spur additional financing innovation and competition. The growth of electric commercial vehicles including buses, trucks, and light commercial vehicles will create demand for larger ticket financing products with different risk profiles than two-wheelers. The maturation of charging infrastructure and battery swapping networks will improve asset utilization and reduce operational risks, potentially leading to better financing terms.
The convergence of mobility and energy sectors creates additional opportunities. Some lenders are exploring integrated financing that combines vehicle purchase with home charging installation and rooftop solar, recognizing that many EV owners also invest in renewable energy generation. Vehicle-to-grid technologies may eventually enable EVs to serve as distributed energy storage, creating additional revenue streams that improve borrower repayment capacity and justify more favorable lending terms.
For consumers considering electric vehicle purchases in 2026, the financing landscape offers unprecedented choice, competitive terms, and accessible solutions across every vehicle segment and price point. Whether purchasing a luxury electric sedan, family-friendly SUV, practical commuter scooter, or commercial three-wheeler for livelihood generation, Indian buyers can access multiple financing options from established banks, nimble NBFCs, innovative fintechs, and specialized green lenders.
The companies profiled in this guide represent the industry leaders making electric mobility financially viable for millions of Indians across urban and rural markets, salaried and self-employed segments, and personal and commercial use cases. Their continued innovation and competition will be essential to achieving India’s ambitious electric vehicle adoption targets and creating a cleaner, more sustainable transportation future. As the market evolves, we can expect these institutions to introduce new products, forge strategic partnerships, and leverage technology to make EV financing faster, cheaper, and more accessible than ever before. The electric vehicle revolution in India is not just a story of technological innovation but equally a story of financial innovation enabling mass adoption.
