CESL Invites EOI for Empanelment of Financial Institutions for Financing EV

CESL E-bus bidding findings

State-controlled Convergence Energy Services Ltd. (CESL) invites EoI (Expression of Interest) for the financing of electric vehicles across India.

The last date for submitting the online bid is October 19, 2022, up to 02:30 pm. Bids will be opened on the same day at 03:00 pm.

This Expression of Interest (EOI) document is for the empanelment of Financial Institutions (FI), such as NBFCs and Scheduled Banks, to finance electric vehicles facilitated by Convergence Energy Services Ltd. (CESL) in partnership with various state governments across India. This request for expression of interest (EoI) is to invite applications, from interested Financial Institutions, who have experience in automobile financing, specifically financing electric vehicles. The eligible and qualified financial institutions (FI) shall be empanelled with CESL to provide the applicant/user(s) with a financing solution for his or her chosen electric vehicle.

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CESL is looking to bring a seamless financing/buying experience and robust monitoring of electric vehicles, offered on lease/EMI. This includes but is not limited to creating a device-agnostic front-end of the platform/solution and should be able to provide the complete functionality of the solution on any mode/device.

Mandatory terms to be offered by Financial Institution

The financial institution(s) shall mandate disbursement/sanction of a minimum of 80% (LTV of 80%) of the invoiced vehicle value (net of FAME-II subsidy) as the loan amount. The financing tenor to be provided by the financial institution(s) will be a minimum of 24 months and a maximum of 60 months. The borrower may choose to avail of financing for 24 months or above, however, the financial institution(s) shall not restrict the loan tenor in any way, provided the loan tenor should remain in the prescribed range. 

The maximum cost of debt should be not greater than 20% for any borrower for any tenor. The processing fee charged by the financial institution(s) shall be less than 4% of the sanctioned loan amount or Rs. 4000/-, whichever is lower. 

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Bidders can view/download these Convergence Energy Services Ltd (CESL) EOI for the Empanelment of Financial Institutions for financing EV tender documents and technical specifications here.

Recently, Convergence Energy Services Ltd. (CESL) invited a request for proposal (RFP) for the operation & maintenance of 5,690 E-buses.

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