EVS come with a higher price tag compared to internal combustion engine (ICE) vehicles, which forces buyers to seek financing from banks and non-banking financial companies (NBFC).
However, interest rates charged by lenders are significantly higher.
Interest on auto loans charged by banks on electric two-wheelers ranges from 12.2 to 21%, while for ICE two-wheelers the rates range between 8.85 to 17.8%.
A report by NITI Aayog and BCG showed that typically, the interest levied on EV two-wheelers is 1-4% higher than ICE vehicles.
While the loan-to-value ratio for an EV two-wheeler ranges from 6580%, lenders are willing to offer up to 95% for an ICE vehicle.
One of the main reasons for higher interest is shorter loan tenor which pushes interest rates higher.
Bu hikaye Financial Express Mumbai dergisinin October 05, 2023 sayısından alınmıştır.
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Bu hikaye Financial Express Mumbai dergisinin October 05, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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