SIDBI provides INR 10 cr term loan to Mufin Green Finance to promote EV financing in India

Mufin Green Finance, the country’s first listed NBFC dedicated to EV financing, has received financial assistance from SIDBI (Small Industries Development Bank of India) in the form of a term loan with a maximum limit of Rs.10 crores. The partnership aims to enhance EV financing support and promote sustainable mobility in India.

SIDBI, established in 1990, serves as the Principal Financial Institution responsible for promoting, financing, and developing the MSME (Micro Small Medium Manufacturing Enterprises) sector. In a collaborative effort with SIDBI, Mufin Green Finance has been designated as an authorized partner to facilitate EV financing among key industry players such as fleet operators and aggregators. This partnership aims to foster growth within the MSME sector. To comply with SIDBI’s directives, Mufin Green Finance has set up sales outlets in multiple cities, thereby expanding its presence and making EV financing more accessible to individuals and businesses across different regions.

SIDBI places significant emphasis on the need for a strong collection process to ensure timely loan recovery, and Mufin Green Finance has showcased its role in implementing sound financial practices and effective loan recovery strategies. The company has also established a repossession system aligned with industry best practices, safeguarding investments and upholding a solid financial position to accelerate the adoption of EVs in India by offering financing solutions for not only electric vehicles but also for various components and aspects of the electric vehicle ecosystem and thus drive the transition towards a more sustainable transportation sector.

Commenting on the alliance, Dr RK Singh, CGM of SIDBI, said, “Our partnership with Mufin Green is aligned with India’s commitment to achieving zero net emissions by 2050. We value the efforts of Mufin and the impact it has created in the industry. This shall benefit the industry through a two-pronged approach – increasing EV penetration as well as promoting financial inclusion for the underserved.”

The founder of Mufin Green Finance, Kapil Garg, expressed enthusiasm for the collaboration, highlighting the significant milestone it represents for EV financing in India. Mufin Green Finance has achieved accreditation from SIDBI by meeting various eligibility standards for financing electric vehicles equipped with AIS-156-certified batteries and pre-installed telematics devices. This achievement not only helps mitigate risks for EV financiers but also has a profound impact on the entire electric vehicle industry, said an official release.

Also Read: EV financing company Revfin raises $5 million investment from the US international DFC