Banks and financial institutions have long been reluctant to finance electric vehicles (EV). Manufacturers of EV have struggled with this and it has impacted their growth as well as adoption.
Banks and financial institutions have long been reluctant to finance electric vehicles (EV). Manufacturers of EV have struggled with this and it has impacted their growth as well as adoption. Sensing a gap and need in the market, Ujjivan Small Finance Bank has entered the space.
“We recognise that very few financial institutions are offering such financing options in the electric vehicle segment, which is a potential income earning opportunity, especially beyond tier-II cities of the country, Samit Ghosh, MD, Ujjivan SFB, said. Ujjivan will offer its unbanked and under-banked customers access to easy financing options for electric three-wheelers, Ghosh said.
The SFB will be targeting its existing customer base of 46.1 million for vehicle finance. “Earlier, our relationship was with the women and now can have a dialogue with their spouses as they have been demanding two- and three-wheeler financing,” Ghosh said.
The bank will be tie up with EV manufacturers across the country and signed its first MoU with Kinetic Green Energy & Power Solutions for financing. Ujjivan will finance Kinetic’s three-wheeler vehicles. The first pilot for this begins in Bihar.
Kinetic group chairman Arun Firodia said, owning and operating our lithium ion-based electric three-wheelers for passenger and cargo delivery is a self-employment opportunity for the youth. They can be gainfully employed and earn as much as `30,000 a month using these three-wheelers as there is no fuel cost and very low operating costs, which improve take home earning. Electric vehicles will be of great utility for last-mile delivery of e-commerce companies, providing utility services and distribution, Firodia said.
According to Firodia, Kinetic Green has sold 15,000 electric medium speed three-wheelers, mostly in north India. The company will soon launch high-speed three-wheelers in south India. The company has set up a network of 150 dealers specialised in electric vehicles.