L&T Finance partners with Ather Energy to offer up to 100% of Loan-to-Value (LTV) on EVs
Mumbai: L&T Finance, a Non-Banking Financial Company (NBFC), on Friday announced a partnership with EV manufacturer Ather Energy.
L&T Finance has a two-wheeler finance business book size of Rs 9,190 crore as of the quarter ending June 2023, while Ather Energy has a presence in 100+ cities across the country.
Under the partnership, L&T Finance will provide up to 100% financing of the Loan-to-Value of the Electric Vehicles (EV) offered by Ather Energy to its customers.
According to a statement, the amount of loan being financed will be on an On-road price basis i.e., inclusive ex-showroom, Regional Transport Office (RTO), and insurance on the vehicle, and will be determined based on the credit profile of the customer.
Customers of Ather Energy can avail of EV financing under various lines of products from L&T Finance like 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, the customers can avail the 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 slightly higher at 7.99% per annum.
All these offerings from L&T Finance have a TAT of under 5 minutes and are with a loan tenure ranging from 3 months to 48 months and the rate of interest is exclusively offered to the customers of Ather Energy.
Commenting on the partnership, Sanjay Garyali, Chief Executive - Urban Finance, L&T Finance, said, “The partnership reinforces our focus on the fourth pillar within L&T Finance’s Lakshya 2026 strategy where under ESG and CSR whatever the Company does has to be environmentally responsible and sustainable.”
“For the Indian Two-wheeler segment, we expect strong growth across the industry. This growth is expected to be fuelled by improved purchasing power, increased dependence on personal mobility for millennials, and shifting preference towards vehicles powered by technology and artificial intelligence," Garyali said.
Considering these aspects, it won’t be surprising to see the penetration of vehicle financing in India, which currently stands at around 60% and grow to 75% in the next few years, Garyali added.
Ravneet Phokela, Chief Business Officer, Ather Energy said, “Ather has since inception, focused on building strong partnerships with banks, NBFCs etc to introduce lucrative EV financing for our users. In fact today, more than 50% of Ather’s customers opt for vehicle financing as their preferred mode of purchasing our scooters."