HDFC Bank has launched a new electric car loan that separates battery and vehicle financing, allowing longer repayment on the costliest component. The lender says the structure is designed to reduce monthly outgo and make EV ownership more affordable as India’s electric mobility market expands.

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HDFC Bank has stepped into the electric vehicle financing race with a product that tries to solve one of the biggest barriers to adoption: the upfront cost of the battery. On Sunday, the lender said it had introduced a new structure that lets buyers finance the vehicle body and battery separately, with the battery component repaid over a longer period.

According to Business Standard , the product has been positioned as a first-of-its-kind offering in the Indian market. The bank says the design gives customers more control over their monthly instalments while aligning with the way battery subscription models are beginning to evolve in the auto industry.

For many prospective EV buyers, the battery remains the single most expensive part of the vehicle. That keeps electric cars pricier at the point of purchase than comparable internal combustion engine models, even when lower running costs are factored in. HDFC Bank 's new loan structure attempts to address that gap by separating the high-value battery from the rest of the vehicle and spreading repayment over a longer tenure.

The bank said the monthly outgo on the battery portion would be comparable to what a customer might otherwise spend on fuel for a conventional car.

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