HDFC Bank Launches Flexi Electric Car Loan With Separate Battery Repayment Terms

HDFC Bank has launched a flexi (green) electric car loan that offers differential loan proportions for the body and battery of an electric vehicle, allowing the battery portion to be repaid over a longer term. The bank announced the product on October 25, 2026, according to BusinessLine.

How the Flexi Electric Car Loan Works

The bank said the battery loan can be repaid over a longer term, giving borrowers the flexibility to customise their EMI outflow through a differential loan tenor. HDFC Bank noted that the prevailing cost structure of EVs makes their acquisition cost higher than that of internal combustion engine vehicles, because batteries are the most expensive component of an electric vehicle.

The bank said the EMI portion for the battery will be comparable with the running cost of an ICE vehicle, and that the approach aligns with evolving battery subscription models that are making EV ownership more accessible and cost-effective.

Arvind Vohra, Group Head of Retail Assets & Rural Banking at HDFC Bank, said, "The EV revolution in India is fast gaining momentum, supported by government incentives, push for improved technological landscape and judicious policies." He added, "Our flexi electric car loan is one more step in that direction as India is set to embrace the EV revolution. Further, we believe this loan will play a pivotal role in making the EV ownership a cost-effective, seamless and hassle-free journey."

HDFC Bank said India's share of passenger cars in the EV segment is expected to touch 15-20 per cent by 2030 from the current 7 per cent, making India one of the key markets for passenger EVs. The bank also cited the government's mission for 30 per cent electric mobility by 2030, improved battery technology and expansion in product portfolios by OEMs.

HDFC Bank's Recent Funding and Partnership Record

HDFC Bank raised $750 million in June 2026 through a five-year senior unsecured USD bond at a 5.067% coupon, priced at 90 basis points over US Treasuries, according to akta.pro company records. The same records show the bank was appointed as one of 20 Book Running Lead Managers for NSE's proposed Rs 30,000 crore IPO, the largest Indian public issue to date, structured entirely as an Offer for Sale involving up to 111.42 million equity shares by existing shareholders including SBI and Canada Pension Plan Investment Board.

Earlier HDFC Bank Announcements This Month

On October 23, 2026, Zee Business reported that car loan interest rates in October 2026 start at 7.70% per annum, with Bank of Maharashtra and Canara Bank offering the lowest, and that monthly EMIs on a Rs 5 lakh loan over five years range from Rs 10,067 to Rs 11,262. On October 22, 2026, Business & Financial reported that HDFC Bank conducted over 8,800 workshops under its Cyber Suraksha campaign between July and October 2026, reaching more than 1.8 lakh citizens. On October 20, 2026, Business Standard reported that incoming MD & CEO Anup Bagchi may expand HDFC Bank's overseas branch network, as its limited international presence constrained FCNR(B) deposit mobilisation.