If you’ve been keeping an eye on the electric vehicle (EV) industry, you’ve probably noticed how quickly it’s picking up pace. With increasing support from the government and financial institutions, the EV market is expanding rapidly, especially for commercial vehicles. If you’re considering making the switch, some exciting changes are coming to EV loans that will make it more affordable and accessible for you. Here’s what to watch out for soon:
- Lower GST on Electric Vehicles
So, do you remember when in 2024 the GST on electric vehicles was reduced from 5% to 3%? Well, this reduction brought the upfront cost of buying an EV down quite a lot.
If you’re considering an electric commercial vehicle, these savings are huge! Let’s say a vehicle is priced at INR 50 lakh. With the current 3% GST, you’d save INR 1.5 lakh upfront. As GST rates continue to reduce, buyers could potentially save more.
What it means for you: As the government moves toward more aggressive EV adoption, expect lower GST rates, which will reduce the overall cost of purchasing an electric vehicle. This will make EVs much more affordable.
- Enhanced Loan Products for Businesses
If you’re a fleet operator or running a business, the next few years will bring some exciting changes for financing EVs. The financial institutions are gearing up to offer more tailored loan products that specifically cater to businesses transitioning to electric vehicles. These products will likely include:
- Lower interest rates: To make electric vehicle loans more affordable for businesses
. - Flexible repayment terms: Options that accommodate the cash flows of business
clients, thereby having a more relaxed control over monthly payment obligations. - Extended tenors: Businesses will enjoy spreading their re-payments more spread out on the books without piling burdens on the books.
This will be especially helpful for companies looking to electrify their fleets without having to bear the full cost upfront. With these flexible loan products, you’ll be able to transition to electric commercial vehicles more smoothly.
What it means for businesses: As loan products evolve, businesses can access more affordable and customized financing options, making it easier to transition to electric vehicles without sacrificing growth or profitability.
- Carbon Credits Integration- A Revenue Stream
Here’s another game-changer coming down the pipeline: carbon credits integration with EV loans. The government is considering policies where businesses and fleet operators transitioning to EVs would be able to receive carbon credits that can either be used to offset part of the loan cost or be traded to create extra revenue streams.
This will encourage companies to use cleaner technologies while offering an opportunity to lower financing costs. In the case of electric vehicles, fleet owners can reduce emissions while potentially making money off the carbon credits they receive.
What this means to businesses: Carbon credits could be an added advantage to the perks of joining the electric vehicle bandwagon. These credits could help slash the effective cost of loans while contributing another source of revenue for businesses embracing sustainability.
- Incentives at the State Level – Boost for the Adoption of EVs in Rural Areas
In addition to national incentives, individual states are implementing their own set of policies to promote the adoption of EVs, especially in rural and semi-urban areas. For example, some states, such as Maharashtra and Delhi, are providing additional subsidies and exemptions on road tax and registration fees for electric commercial vehicles. State-specific financial support complements national schemes, further making EVs more affordable for businesses and individual buyers in non-metro regions.
This is especially beneficial for smaller-scale operations or those in rural areas, where upfront costs can be a barrier to adopting electric vehicles.
What it means for you: If you live in a smaller city or rural area, you’re likely to benefit from both state and central government incentives, reducing the financial burden of transitioning to electric vehicles.
How These Changes Are Impacting the EV Loan Landscape
These key changes are expected to drive a significant surge in the adoption of electric vehicles, especially in the commercial sector. According to the Society of Indian Automobile Manufacturers (SIAM), electric vehicle sales have already been on the rise due to favorable policies, and with these changes, that upward trend is only going to accelerate.
The International Energy Agency (IEA) further predicts that commercial EVs in India will grow at a CAGR of 45% from 2024 to 2030, showing how huge the changes are. Many more businesses are going to jump onto the EV bandwagon as such financial products become easily accessible and affordable.
Revfin’s Ambitious Future Goals:
Revfin’s vision is even more inspiring as it looks to the future. The company has set audacious targets that will help accelerate the shift to electric vehicles and ensure that more people—especially those in underserved regions—can access financing for Commercial EVs.
Revfin aims to finance a massive 20 lakh vehicles over the next five years. This translates to Rs 20,000 crore in loan disbursements, a goal that would revolutionise the electric vehicle market in India. By the end of March 2026, Revfin plans to disburse Rs 5,000 crore to individuals and businesses looking to make the switch to electric.
Revfin has already achieved remarkable milestones in India’s electric vehicle (EV) sector, and its journey so far reflects not just growth but a commitment to driving change in the way India views sustainable transport.
- Financed Over 80,000 EVs:
Revfin has already financed 80,000 electric vehicles, demonstrating a clear demand for electric vehicles across various sectors. This milestone reflects the company’s deep understanding of the market and its ability to meet the growing demand for sustainable transport options. - Rs 1,000 Crore Loan Disbursement:
With a total of Rs 1,000 crore already disbursed in loans, Revfin has provided critical financial support to individuals and businesses transitioning to electric vehicles. Rs 400 crore of this amount has been disbursed this year alone, showcasing the momentum Revfin is gaining in the EV financing space. - Economic and Gender Inclusion:
Revfin’s financial products have been empowering underserved communities. 76% of its loans have been provided to financially excluded customers, who would typically face difficulties accessing credit. Furthermore, 26% of loan disbursements have gone to women, ensuring that economic opportunities are accessible to all, irrespective of gender.
Why This is Great News for You:
Revfin’s aggressive expansion and future goals are great news for anyone looking to embrace electric vehicles. With affordable loans, flexible repayment options, and a digital-first approach, Revfin is making Commercial EV financing accessible to a broader audience.
For individuals looking to invest in electric three-wheelers (e-rickshaws) or businesses transitioning to electric vehicles for commercial use, Revfin’s tailored loan products are designed to meet specific needs, offering affordable terms and lower interest rates.
What’s even more exciting is that Revfin’s focus on financial inclusion means that people who have traditionally been left out of the formal credit system now have an opportunity to join India’s green revolution. With Rs 5,000 crore in loans set to be disbursed by 2026 and a target of 20 lakh Electric vehicles financed, the company’s future is promising, and it brings new opportunities for everyone.
Looking Ahead: Challenges and Opportunities
Despite these promising changes, there are still challenges, especially around charging infrastructure. One of the key advantages of EVs is that they can be conveniently charged at home, making daily commutes hassle-free. However, for longer trips and intercity or long-haul operations, the availability of a robust public charging network is crucial. Governments and businesses will need to continue investing in fast-charging stations along highways and key transport routes to ensure a seamless EV transition and eliminate range anxiety.
Additionally, there needs to be policy consistency to ensure that the incentives stay relevant and effective in the long term.
With these key changes on the horizon, there’s never been a better time to consider making the switch to electric vehicles. From lower GST rates to enhanced loan products, carbon credits, and state-level incentives, the financing landscape for EVs is becoming more favourable and accessible than ever before.
If you’ve been waiting for the right moment to go electric, now is that time. Whether you’re an individual looking for an affordable EV loan or a business ready to electrify its fleet, the future looks greener and more affordable than ever before.
Ready to make the switch? With the right financial products and the support of companies like Revfin, transitioning to electric vehicles is not just a dream—it’s a reality you can start today.
Author: Revfin Services
RevFin is a financial technology (FinTech) company. Our advanced digital lending platform makes getting a loan convenient and accessible for our customers. We have our own lending company (NBFC), through which we issue loans to our customers.
