India is making EV loans easier to access
India is stepping up efforts to make electric vehicle (EV) loans more accessible, especially for commercial transport.
The government wants to tackle air pollution from heavy vehicles—which are just 2% of all vehicles but a big source of harmful emissions—by making it easier for businesses to get EVs on the road.
New risk-sharing mechanisms between banks and development finance groups aim to give lenders more confidence and help more people access EV loans.
How will this help?
Right now, getting an EV loan is tough: interest rates are higher and repayment periods are shorter than regular car loans, so most big banks stay away.
By easing these hurdles, the government hopes to speed up clean transport adoption, boost local battery production, which is expected to double by the end of the scheme, and create jobs.
Thanks to these moves—including major schemes like FAME and PLI—commercial EV use has already jumped over 120% in the past year, marking real progress toward cleaner cities and greener industry.