- Financial Express
SIDBI to give loans to MSMEs for buying electric vehicles; lend to NBFCs for EV financing
Credit and finance for MSMEs: MSMEs finding it difficult to access loans to purchase electric vehicles (EVs) for their day-to-day operations and commercial use will now be able to access credit directly from SIDBI, the principal financial institution for MSMEs in India. As per a pilot scheme Mission 50,000-EV4ECO announced under guidance from NITI Aayog, SIDBI has said that it will directly give loans to eligible MSMEs (including EV fleet operators, EV leasing companies and aggregators) to buy EVs including two-wheelers, three-wheelers and four-wheelers and also to develop charging infrastructure including battery swapping.
According to SIDBI, a detailed discussion with stakeholders revealed that access to adequate finance including a competitive rate of interest is a challenge faced by MSMEs in buying EVs and also by NBFCs catering to the EV ecosystem.