L&T Finance Partners With Ather Energy To Offer 100% of Loan-to-Value On EVs; Stock Jump 5%

Leading NBFC, L&T Finance Holdings on Friday partnered with Ather Energy India's first intelligent electric vehicle manufacturer with a presence in over 100 cities across the country. As part of the deal, the Larsen & Toubro-backed financial services company will provide up to 100% financing of the Loan-to-Value of the Electric Vehicles (EV) offered by Ather Energy to its customers.

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, L&T said in a press release.

L&T Finance is amongst one of the leading financiers in the new Two-Wheeler segment. The company's two-wheeler finance business had a book size of Rs 9,190 crore by the end of the June 2023 quarter.

Sanjay Garyali, Chief Executive - Urban Finance, L&T Finance, said, "We are excited to partner with Ather Energy and this partnership is a part of our Company's shared commitment to providing mobility which helps in contributing towards the reduction of carbon footprint and making India a cleaner & greener country. Further, 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."

Further, under the partnership, 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.

Customers can avail of the loans at an annual rate of interest of 6.99% per annum on all these products except for Expres Loans.

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, it added.

Garyali added, "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. 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."

Meanwhile, Ravneet Phokela, Chief Business Officer, of 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."

Phokela added, "We are delighted that this collaboration with L&T Finance will allow us to further accelerate EV adoption by offering users multiple finance products to choose from, based on personal preferences. Their reach, credibility and expertise will be a huge asset as we expand our distribution footprint to more geographies."

On BSE, L&T Finance's share price ended at Rs 133.05 apiece, up by nearly 5% on Friday. The company has a market cap of over Rs 33,037 crore.