Is It So Difficult to Get an Electric Vehicle Loan for Fleet Operators in India?

We’ll give you the short answer first - it’s both Yes and a No.  Not to get confused. India still lags behind with just 60% loans for Evs vs 75% for petrol vehicles. But this will soon change as the Indian EV sector is experiencing rapid growth.

From last-mile delivery fleets to corporate logistics, every sector is transitioning to electric.  Yet, for many fleet operators, accessing an electric vehicle loan in India remains one of the biggest challenges. While manufacturers are ready and government incentives are growing, financing remains slow, conservative, and fragmented.

For fleet owners managing two-, three-, or four-wheeler EVs, traditional lenders often say “no” before hearing the business case. The result? Stunted growth in one of the most promising clean-mobility sectors.

Traditional Lenders Still Don’t Understand EV Economics

The first hurdle is risk perception. Banks and NBFCs often struggle to evaluate EVs as assets sometimes. You can go around asking, but they all have the same story to tell.

Unlike petrol or diesel vehicles, EVs have limited resale history, unpredictable depreciation, and an ever-changing technology curve.

When lenders assess fleet loans, they look for collateral value and recovery feasibility, both of which are unclear in the EV space. The lack of historical performance data makes institutions hesitant to approve electric vehicle loans in India for fleet-based businesses.

Let’s see how Revfin looked at this differently

Revfin found a way - it's not an impossible problem, it’s just a data problem. With the right relevant technology like psychometric analysis, telematics and IoT, they can assess driver reliability and income stability far better than through outdated credit scoring.

Informal Fleet Structures Block Formal Credit

Many fleet operators in India function through informal arrangements, leased vehicles, partner-driver models, or aggregator tie-ups. These setups often lack formal documentation, business credit history, or GST records.

For a traditional lender, that’s an immediate red flag. Without balance sheets or CIBIL scores, a business might appear “high risk” even when its operations are steady.

Let’s see how Revfin looked at this differently

Revfin’s alternative credit approach changes this narrative. By using psychometric analysis and digital KYC, Revfin enables small fleet operators to access an electric vehicle loan in India, even without a traditional credit footprint.

The Collateral Conundrum

Most lenders still expect collateral to secure vehicle loans. However, since EV batteries can represent up to 40% of the vehicle’s cost and are often leased separately, the vehicle itself cannot be fully hypothecated.

This split ownership complicates loan underwriting. Additionally, recovery risk is perceived as higher since the repossession and resale market for EVs is still immature.

Let’s see how Revfin looked at this differently

Revfin is solving this by leveraging vehicle IoT data and usage analytics as soft collateral. Real-time data on fleet utilization, route patterns, and repayment history creates a transparent lending ecosystem, redefining how an electric vehicle loan in India can be evaluated.

High Upfront Costs, Slow Payback

For fleet businesses, especially those operating in logistics or ride-hailing, the economics of EV adoption hinge on total cost of ownership (TCO). While running costs are lower, the upfront price of EVs remains high.

Banks often limit loan-to-value (LTV) ratios to 70–75%, forcing operators to bring in large down payments. That’s unrealistic for small fleet owners scaling quickly.

Let’s see how Revfin looked at this differently

Revfin’s flexible EMI structures and usage-based financing models are designed specifically for the EV ecosystem. They bridge the cashflow gap that makes a conventional electric vehicle loan in India so prohibitive.

Limited Lender Awareness of EV Business Models

The lending landscape hasn’t yet evolved to match new mobility models, subscription fleets, pay-per-use, battery-as-a-service (BaaS), and ride-share ecosystems.

For traditional financiers, these are “unbankable” because cash inflows are unpredictable. Yet these models are the future of sustainable transport.

Let’s see how Revfin looked at this differently

Revfin’s partnerships with OEMs, fleet aggregators, and charging providers create a credit comfort network, where lenders gain visibility into usage and payment cycles. This reduces default risk and opens up the electric vehicle loan market  in India to innovative business models.

The Data Gap Between Drivers and Lenders

Driver-level insights, such as trip data, repayment behaviour, and earning consistency, are critical to building trust with lenders. Unfortunately, most institutions lack access to this granular information.

Let’s see how Revfin looked at this differently

Revfin solves this by allowing risk-based pricing that rewards good performance. This inclusive approach is transforming the narrative around electric vehicle loans in India, making financing accessible for low-income or first-time borrowers.

Let’s summarize what Revfin offers

The future of India’s EV growth depends on making financing as innovative as the vehicles themselves. Fleet electrification cannot scale if credit remains locked behind outdated systems.

Revfin is showing the way forward with:

Digital-first lending journeys that approve loans in hours, not weeks.

Psychometric and a behavioural credit scoring that enables inclusion.

Telematics-based performance tracking for transparency and accountability.

Partnership models with OEMs, aggregators, and leasing companies.

This integrated ecosystem transforms how electric vehicle loans in India are assessed, approved, and monitored, paving the road for faster, fairer EV adoption.

Financing the Future Fleet

As India moves toward its 2035 electrification goals, fleet operators are the backbone of this transition. But they can’t drive the change if financing remains a barrier.

The challenge isn’t just about money, it’s also about trust, visibility, and understanding. By reimagining how creditworthiness is defined, Revfin is helping fleet operators access affordable and sustainable EV financing, building the fleets of the future.

In other words, batteries won’t just power the next phase of India’s EV revolution, it’ll be powered by smarter, more inclusive lending.