How FI-MEN, a technology, helps mobilize financing for electric vehicles in India

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India is poised to achieve the goal of becoming an all-electric (EV) nation by 2030 with optimistic sales figures and the unveiling of a slew of new models by automakers.

According to a recent report by research firm JMK Research and Analytics, consolidated electric vehicle sales in the country reached 50,000 units in December last year, registering a 240% year-on-year growth. (YoY) compared to December 2020.

With Omicron’s waning lead wave coupled with falling technology costs, India’s electric vehicle shipment figures are expected to continue to reach new highs in the coming months. The growth of the segment will also be fueled by the emergence of new disruptive business models aimed at the common goal of driving the adoption of electric vehicles in the country.

While initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) Phase II program, with a budget of 10,000 crore to offer subsidies to EV buyers in different segments are in place, the need of the hour is to offer personalized and hassle-free financing options to consumers.

According to a recent report by the country’s top public policy think tank, NITI Ayog, financial institutions are expected to lend around 40,000 crore by 2025 and 3.7 lakh crores by 2030 to drive the adoption of electric vehicles by the masses.

Banks and NBFCs are also reluctant to finance EVs due to business models and asset risks and the birth of the EV industry. Additionally, in some cases, when financing is available, a significant share of EV buyers do not match the terms of the loan (high interest rates, lower tenures) compared to ICE vehicles. .

How startups like FINAYO are transforming the lending space

In such a scenario, game-changing startups like FINAYO, which rely on cutting-edge technologies including AI and machine learning, are leading the way in alleviating financial bottlenecks in the electric vehicle segment. from the country.

According to Mr. Brajendra Singh Tomar, Founder and CEO of FINAYO, different NBFCs prefer to finance different models of EVs ranging from two-wheelers to SUVs to utility vehicles and FINAYO aims to bring all of these under one umbrella to meet a greater number of electric vehicle buyers. in the countryside.

Mr. Tomar is also of the opinion that the impressive Fi-Men solution which offers a range of loan offers to consumers from different financial institutions with just the scan of the QR code is a win-win proposition for OEMs, lenders and customers.

Leveraging state-of-the-art technologies, the FINAYO team has ensured that the platform offers personalized financing options based on both EVs and the credit history of EV buyers. The platform uses the state-of-the-art Asset Business Rules Engine and Lender Business Rules Engine in this regard. With this, banks and NBFCs get a bird’s-eye view of consumers’ consumption behavior to provide them with compelling loan offers in minutes.

Prest Loans aims to collaborate with FINAYO to offload the tedious and complex process of risk and asset assessment from customers for a quick and convenient buying experience for potential EV buyers. As part of our strategic collaboration, we would also like FINAYO to cover untapped EV markets in the country so that we can jointly achieve India’s 2030 EV target.

About Ashok Mittal

Founder and CEO of Prest Loans, an RBI registered NBFC, Ashok Mittal is an industry veteran with over three decades of banking and financial services experience. He has also been a prominent speaker at seminars of prestigious organizations such as FICCI, Assocham, PHD Chamber of Commerce, Elets, etc. representing the industry. His views are widely covered in print and electronic media.

https://www.linkedin.com/company/finayotech

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Disclaimer: This is a company press release. No HT journalists are involved in the creation of this content.

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