Non-Banking Financial Company (NBFC), L&T Finance has announced a partnership with Ather Energy for electric vehicles (EVs). As per the agreement, L&T Finance will provide up to 100% financing of the loan-to-value (LTV) of the EVs offered by Ather Energy to its customers.
The partnership at a glance
| L&T Finance to offer loans @ 6.99% interest rate per annum |
| Customers can avail up to 100% of the Loan-to-Value (LTV) without any income proof |
| No hypothecation required |
| Less than 5 mins TAT |
| On the spot approvals |
The offers:
Other customers can avail of EV financing under various lines of products from L&T Finance. These include:
- Verified Income Proof (VIP) Loan, VIP Pro Loan, Sabse Khaas Loan (SKL), SKL Pro, Centum Loan, and Express Loan.
- Except for Express Loan, the customers can avail the other loans at an annual rate of interest of 6.99% per annum
- In the case of Express Loan, a product for all, customers are not required to submit any credit profile or income proof, but the annual rate of interest is 7.99% per annum
- TAT of under 5 minutes and a loan tenure ranging from 3 months to 48 months
Commenting on the partnership, Mr. Sanjay Garyali, Chief Executive – Urban Finance, L&T Finance, said, “This partnership is a part of our company’s shared commitment to reduce carbon footprint and promote sustainability in India, aligning with our Lakshya 2026 strategy for environmental responsibility and CSR.”
The company expects strong growth in the Indian two-wheeler segment due to improved purchasing power, millennials’ increased mobility, and preference for technology-powered vehicles. Vehicle financing penetration is expected to rise to 75% in the coming years, L&T Finance said in a press release.
Mr. Ravneet Phokela, Chief Business Officer, Ather Energy said, “Today, more than 50% of Ather’s customers opt for vehicle financing as their preferred mode of purchasing our scooters. We are delighted that this collaboration with L&T Finance will allow us to further accelerate EV adoption. Their reach, credibility, and expertise will be a huge asset as we expand our distribution footprint to more geographies.”
It must be noted that L&T Finance has a Two-Wheeler Finance business book size of Rs. 9,190 crore as of the quarter ending June 2023. Ather claims to be India’s first intelligent electric vehicle manufacturer with a presence in 100+ cities across the country.