Niti Aayog and the World Bank are working together to facilitate a program for faster and easier financing of electric vehicles (EV) after high-street banks seemed lukewarm due to a small resale market, higher default probabilities, and significant upfront costs.
NITI Aayog and World Bank are setting up a$300-million‘first loss risk sharing instrument’, with theState Bank of India (SBI)as its program manager. The current rate of interest for electric two-wheelers & electric 3 Wheelers, which is in the range of20-25 percentis expected to be reduced to 10-12 percent.
