Electric vehicles are the new buzzword and the market in India is growing steadily. The Electric vehicle market was USD $ 5 billion in 2020 and is expected to grow to the US $ 47 billion by 2021. The state of Kerala alone plans to launch 1 million electric vehicles by 2022 and 6000 e-buses by 2025. The vehicles that are going electric are passenger cars, 2 wheelers and heavy-duty vehicles such as buses and trucks. The types of vehicles by charging type include plug-in hybrid electric vehicles, hybrid electric vehicles and battery electric vehicles.
The Indian government is pushing for green environment initiatives and has moved from Bharat Stage V (BSV) to BSVI standards is expected to boost the market for electric vehicles further. This exponential rise of electric vehicles has led to an increase in the requirement for charging stations. The business of setting up charging stations Is a lucrative new business. The business includes getting land as the charging station will need to accommodate at least a few vehicles and 2 wheelers on the basis of the type of vehicles for which the charging business is to be set.
The location of the land is important as people would prefer to be in the vicinity of a shopping mall or a shopping complex or a locality of markets and restaurants so that they can shop and eat while their vehicles are being charged. A commercial area would also be a good idea as customers can attend office while their vehicles are being charged.
The next requirement is for the type of equipment based on the type of charging to be done. There are fast chargers that charge the entire batteries of an electric vehicle within an hour and do a partial charge within a few hours. Fast chargers include CHadeMO chargers, CCS chargers, and type 2 AC chargers. The slow and moderate chargers include AC 001 and DC 001.
The cost estimation of the setup of the business has been tabulated below:
This startup cost and recurring annual income may require an entrepreneur to apply for a business loan.
There are companies within India that offer equipment and the opportunity to set up a charging station as a franchisee and also offer finance.
We are an NBFC (nonbanking finance company) providing business loans for SMEs (Small and medium enterprises sector that includes the business of charging stations for electric vehicles.
How to apply for a business loan for an EV charging station
The terms and conditions for our business loans are as follows
- The business must have been in operation for at least 6 months till the time of application for the loan
- The interest is between 1 to 2 % per month.
- The tenure of the loan is 36 months and can be extended upto 4 years.
- The loan can be prepaid anytime after paying at least one EMI and there are no preclosure charges.
- The applicant needs to check his or her eligibility for the loan amount, interest and tenure and then fill up the downloaded application.
- The applicant needs to get the required documents ready as per the checklist and visit us. We will help the applicant fill thr form and offer our best services.
- The applicant can rest assured we will examine the loan application, do a thorough scrutiny of the documents and provide the best financing with the best interest rates.