L&T Finance to provide up to 100% loan on Ather EV's on-road price

The amount of loan being financed will be determined based on the credit profile of the customer of Ather Energy

L&T Finance announced on Friday its collaboration with electric vehicle (EV) manufacturer Ather Energy to offer up to 100 per cent financing based on the loan-to-value (LTV) of the vehicles provided by Ather. The loan amount to be financed will be calculated on an on-road price basis and will vary according to the customer's credit profile.

Customers can opt for EV financing through various product lines from L&T Finance such as Verified Income Proof (VIP) loan, VIP Pro Loan, Sabse Khaas Loan (SKL), SKL Pro, Centum Loan, and Express Loan.

For all these products, except for Express Loan, customers can avail themselves of loans at an interest rate of 6.99 per cent per annum. For the Express Loan, the interest rate is higher, at 7.99 per cent per annum.

Also Read: Ather Energy to make net profit in 24 months, plans to raise more funds

 

According to the company, loan tenures range from three months to 48 months. As of the quarter ending on 30 June, the book size of L&T Finance's two-wheeler finance business stood at Rs 9,190 crore.

Sanjay Garyali, Chief Executive of Urban Finance at L&T Finance, remarked, "We are excited to partner with Ather Energy. This partnership aligns with our company's shared commitment to providing mobility solutions that contribute to reducing the carbon footprint, thereby making India a cleaner and greener country."

"We anticipate robust growth across the two-wheeler industry in India. This growth is likely to be driven by improved purchasing power, a greater reliance on personal mobility among millennials, and a shift towards technologically advanced vehicles. Given these factors, it would not be surprising to see the penetration of vehicle financing in India, currently at around 60 per cent, increase to 75 per cent in the coming years," he added.

Ravneet Phokela, Chief Business Officer of Ather Energy, stated, "Today, more than 50 per cent of Ather's customers choose vehicle financing as their preferred mode of purchasing our scooters. We are pleased that this association with L&T Finance will enable us to accelerate EV adoption by offering users a variety of financial products to choose from based on personal preferences."