AMU’s approach to electric vehicle financing solutions

Gurugram-based Accelerated Money For U (AMU Leasing Pvt. Ltd.) is a Non-Banking Financial Company that offers comprehensive EV financing solutions to consumers. An excerpt of EVreporter’s interaction with Nehal Gupta, Founder & MD at AMU.

What are the different financial products offered by AMU?

We offer a wide range of financial products for electric 2/3/4 commercial and passenger vehicles, battery financing and leasing, electric heavy commercial vehicles, e-buses, and drones. Additional services include supporting the retrofitment of ICE 3Ws, repossession and market sales support, along with special partnership projects such as 2W financing exclusively for women borrowers through SEWA Sisters to empower women entrepreneurs in green mobility.

What is your current AUM and its break-up between different products?

As of the latest data, we manage an Asset Under Management (AUM) of $18 million.

• More than 60% of our portfolio consists of 3Ws – both cargo and passenger

• Remaining 40% constitutes of batteries, 2Ws, 4Ws, drones, and HCVs

AMU has expanded its presence across 15 states, supporting over 250 MSMEs and more than 10,000 individuals, with over 15,000 vehicles financed and over 5 million kilometres driven. The company aims to finance over one million electric vehicles (EVs) by 2030.

Please guide us through your underwriting and risk evaluation process for EV loans.

Our underwriting for Green Finance combines asset, borrower, and distributor assessment. With over 150+ parameters, we evaluate:

• Vehicle powertrain viability, including a deep analysis of the battery, motor, and controller;

• Borrower and asset revenue generation capabilities; and

• Distributor’s sales and risk vintage.

Our risk process includes real-time data checks, on-field verification, and predictive asset analytics to minimise defaults. We tailor repayment plans to client capacity, promoting sustainable financing. This approach helps us to support green mobility while managing risks effectively and empowering more customers to adopt electric vehicles confidently.

What interest rates and LTV ratios are being seen in the EV financing space?

In India’s electric vehicle financing sector, interest rates and Loan-to-Value (LTV) ratios are a function of the dynamic customer risk profiling. For electric passenger vehicles (e-PVs), interest rates are competitive with those of internal combustion engine (ICE) vehicles, typically ranging from 12% to 15%.

• Electric two-wheelers and e-rickshaws often attract higher rates, between 18% and 22%, due to perceived higher risks due to low asset quality and a less developed resale market.

• LTV ratios for EV loans generally range from 75% to 90% of the vehicle’s cost, depending on the lender’s policies and the borrower’s credit profile. For instance, the State Bank of India’s Green Car Loan offers up to 90% LTV for specific electric car models.

AMU aligns its interest rates and LTV offerings with these industry standards, tailoring them to meet customer needs while managing associated risks and offering more flexibility compared to banks.

How does the industry manage EV loan defaults? What is AMU’s take on it?

Managing defaults in EV financing presents unique challenges due to the evolving nature of the EV market and the nascent state of the second-hand EV market, which complicates asset recovery. Industry strategies to mitigate these risks include conducting thorough credit assessments, requiring substantial down payments, setting prudent loan-to-value (LTV) ratios, and offering flexible repayment options to accommodate borrowers’ financial situations. Additionally, leveraging telematics data to monitor vehicle usage, battery health, and first-hand OEM/Distributor support aids in proactive risk management.

We rely on a three-pronged strategy: proactive asset checks, phygital collections (via banking channels and Fleet-on-Street), and a centralised call centre along with a repossession management team. We utilise real-time data monitoring and predictive analytics to proactively identify potential default risks, enabling timely interventions. Repossession and resale are managed by the FOS team in tandem with partner support.

How does AMU evaluate the value of the battery or remaining battery life of a used EV to help determine resale or refinancing options?

We use a data-driven and field-based approach to evaluate battery value and remaining life in the used EVs. We assess the battery’s State of Health (SoH), charge cycles, manufacturer specs, and real-time performance data using telematics or diagnostic tools. Physical inspections and OEM-certified reports provide further confirmation of battery conditions. This helps estimate an accurate residual value for resale or refinancing decisions. We partner with service networks and battery tech experts to standardise assessments, ensuring fair pricing and risk-adjusted financing.

In which areas do you see the best business potential for a financier going forward?

The highest business potential lies in financing last-mile delivery vehicles, e-rickshaws, and electric two-wheelers due to their growing adoption in urban and semi-urban areas. These segments benefit from strong demand, faster turnover, and government incentives. Additionally, battery leasing and top-up loans are appearing as profitable services by addressing battery replacement costs. Financing commercial EV fleets for logistics and delivery also shows promise with the rising e-commerce growth.

This interview was first published in the EVreporter June 2025 magazine.

Also read: Chargeup partners with NBFCs to enable INR 50 crore EV financing for last-mile drivers