The IND Green Charge Scheme is a dedicated EV charging infrastructure loan offered by Indian Bank to help entrepreneurs, MSMEs, and eligible businesses establish, expand, or modernize electric vehicle charging stations in India. The scheme provides loans above ₹10 lakh and up to ₹10 crore, with interest rates ranging from 9.00% to 9.25% per annum and a repayment tenure of up to eight years.
As India’s electric vehicle market grows, the need for reliable charging infrastructure is creating new business opportunities. However, purchasing charging equipment, arranging electricity connections, and developing suitable sites require substantial investment.
IND Green Charge aims to address this financing challenge by supporting public charging stations, captive charging facilities, and fleet charging infrastructure, including standalone and franchise-based business models.
For entrepreneurs planning to enter the EV charging business, understanding the scheme’s eligibility, project costs, repayment conditions, and financial risks is essential before applying.
What Is the IND Green Charge Scheme?
IND Green Charge is a specialized green financing initiative introduced by Indian Bank to support the development of electric vehicle charging infrastructure across India.
Unlike conventional vehicle loans, this scheme focuses on the infrastructure required to charge electric vehicles rather than financing the purchase of an EV.
It is designed primarily for existing and prospective MSME businesses and other eligible borrowers interested in developing charging facilities.
The scheme supports three major categories:
- Public Charging Stations (PCS): Commercial charging facilities accessible to EV drivers.
- Captive Charging Stations (CCS): Charging facilities developed primarily for the operator’s own vehicles or designated users.
- Fleet Charging Stations: Dedicated infrastructure for electric taxis, delivery vehicles, buses, and commercial fleets.
Both standalone charging businesses and franchise-based operations can be considered.
The scheme also supports the expansion and modernization of existing EV charging infrastructure, making it relevant to established charging point operators.
IND Green Charge Scheme: Key Features and Benefits
The scheme combines long-term infrastructure financing with relatively flexible repayment arrangements.
| Particulars | Scheme details |
|---|---|
| Financing institution | Indian Bank |
| Loan type | Term loan |
| Purpose | EV charging infrastructure development |
| Minimum loan amount | Above ₹10 lakh |
| Maximum loan amount | ₹10 crore |
| Interest rate | 9.00%–9.25% per annum |
| Promoter contribution | 25% of total project cost |
| Maximum repayment tenure | 96 months, including moratorium |
| Moratorium | Up to 6 months |
| Repayment options | EMI, equal-principal or ballooning repayment |
| Processing charges | Nil |
| Charging models | Public, captive and fleet charging |
| Business formats | Standalone and franchise |
| Security | Asset hypothecation plus applicable security and guarantees |
The most important IND Green Charge Scheme benefits include access to dedicated financing, support for different charging business models, the possibility of integrating renewable energy, and flexibility in structuring repayments.
However, loan approval depends on the borrower’s eligibility, credit assessment, project feasibility, security arrangements, and the bank’s sanction conditions.
Entrepreneurs should also explore the available government subsidies for EV charging stations in India, as eligible infrastructure incentives may help reduce project costs. However, subsidy eligibility and bank financing are governed by separate conditions.
Why Is EV Charging Infrastructure Financing Important in India?
India’s transition to electric mobility is increasing demand for charging facilities in cities, industrial areas, transport corridors, and commercial destinations.
During FY2025–26, India recorded approximately 26.59 lakh electric vehicle sales, representing nearly 29.7% year-on-year growth.
Two-wheelers and three-wheelers continued to account for most electric vehicle sales, while electric passenger cars and commercial fleets created additional demand for organized charging networks.
Charging infrastructure has also expanded.
According to government-reported figures, India had 67,657 installed EV chargers as of August 7, 2026, including 1,139 chargers at battery-swapping stations.
These figures use a broader charger count and should not be directly compared with earlier public charging station counts.
Despite infrastructure growth, charging accessibility remains uneven.
A driver travelling between major cities may find several charging options near urban centres but fewer reliable alternatives along less-developed highway stretches.
Similarly, delivery companies and taxi operators increasingly need dependable charging facilities to keep their vehicles operating throughout the day.
This creates business opportunities for charging operators capable of selecting suitable locations, maintaining reliable equipment, and achieving consistent station utilization.
These are lending targets, not confirmed disbursements.
Who Is Eligible for the IND Green Charge Scheme?
The IND Green Charge Scheme eligibility criteria cover individuals and several types of business entities proposing qualifying EV charging infrastructure projects.
Eligible applicants include:
- Individuals planning eligible charging infrastructure businesses.
- Proprietorship firms.
- Partnership firms.
- Existing and prospective MSME entities.
- Corporate entities.
- Other eligible legal entities, excluding Hindu Undivided Families (HUFs).
Importantly, the scheme is not restricted to businesses already operating charging stations.
New entrepreneurs can also seek financing for eligible projects.
However, applicants should demonstrate that the proposed charging business is financially and operationally viable.
What Does the Bank Consider Before Approving a Loan?
A credible project proposal should explain:
- Whether sufficient EV charging demand exists.
- How the proposed location will attract customers.
- Whether suitable electricity infrastructure is available.
- How much the project will cost.
- How the borrower will contribute the required margin.
- Whether projected revenues can support loan repayment.
- What security and guarantees can be provided.
The bank may also assess the applicant’s credit history, financial position, relevant business experience, and supporting documents.
Meeting the broad eligibility criteria does not automatically guarantee approval.
Which EV Charging Projects Are Eligible for Financing?
The scheme supports charging infrastructure in multiple locations, provided the proposed project meets the bank’s requirements.
Eligible locations can include highways, urban centres, commercial complexes, industrial areas, parking facilities, hotels, restaurants, fuel stations, fleet hubs, transport terminals, and residential societies.
Choosing the right charging equipment is essential for controlling infrastructure costs. Understanding the difference between AC and DC chargers for EVs can help operators select suitable charging technology based on vehicle demand, charging speed, and available investment.
1. Public EV Charging Stations
Public charging stations serve electric vehicle users who need charging facilities outside their homes or workplaces.
Suitable locations may include shopping complexes, commercial parking areas, highway restaurants, and fuel stations.
These businesses depend heavily on public accessibility, charging demand, competitive pricing, and equipment availability.
2. Captive EV Charging Stations
Captive charging infrastructure is generally developed for a defined user group.
Examples include businesses operating electric vehicles, institutional campuses, and residential developments.
Such projects may offer more predictable charging demand than completely public charging stations.
3. Fleet EV Charging Stations
Fleet charging facilities are particularly relevant to electric taxi operators, logistics companies, delivery fleets, and commercial transport businesses.
Unlike public charging stations, their utilization can often be estimated using vehicle numbers, daily mileage, battery consumption, and operating schedules.
This makes fleet charging an interesting financing opportunity where charging demand is supported by actual fleet operations.
What Project Costs Are Covered Under IND Green Charge?
The IND Green Charge Scheme project costs can include several components required to develop or upgrade a charging facility.
Eligible project components include charging equipment and associated hardware and software.
Projects incorporating solar power or other renewable energy systems for charging operations may also have eligible renewable energy components considered.
Customer amenities can receive financing consideration, subject to applicable conditions.
| Project component | Financing consideration |
|---|---|
| AC and DC charging equipment | Eligible charging equipment |
| Associated hardware | Eligible |
| Charging software | Eligible |
| Solar or renewable energy integration | May be considered |
| Restrooms and waiting areas | Subject to conditions |
| Cafeteria and customer facilities | Subject to conditions |
| Parking and associated amenities | Subject to conditions |
The cost of associated customer amenities is subject to a ceiling of 25% of the overall project cost, wherever applicable.
This does not mean the bank automatically finances every expense involved in purchasing land, securing an electricity connection, or developing the property.
Applicants should obtain confirmation regarding individual cost components before finalizing their project budget.
IND Green Charge Scheme Loan Amount and Project Cost Calculation
The scheme offers term loans above ₹10 lakh and up to ₹10 crore.
Borrowers must contribute a margin equal to 25% of the total project cost.
For straightforward planning, the remaining 75% can be considered the potential bank-financed portion, subject to eligible costs, the maximum loan limit, and sanction conditions.
Charging station developers in Uttar Pradesh can also examine the EV charging station subsidy in Uttar Pradesh, which provides capital assistance for qualifying projects, subject to the state’s eligibility and approval conditions.
Illustrative project financing:
| Total project cost | 25% promoter contribution | Illustrative loan |
|---|---|---|
| ₹20 lakh | ₹5 lakh | ₹15 lakh |
| ₹40 lakh | ₹10 lakh | ₹30 lakh |
| ₹1 crore | ₹25 lakh | ₹75 lakh |
| ₹5 crore | ₹1.25 crore | ₹3.75 crore |
| ₹10 crore | ₹2.50 crore | ₹7.50 crore |
These examples assume the full project cost qualifies for financing.
The figures are illustrative and do not represent guaranteed loan approvals.
For projects involving more than ₹10 crore in total investment, the scheme’s maximum loan limit remains ₹10 crore.
Practical Example: Setting Up a ₹40 Lakh EV Charging Station
Consider an entrepreneur planning to establish a charging station near a busy commercial and transport corridor.
The estimated eligible project investment is ₹40 lakh.
Under the scheme’s 25% margin requirement, the entrepreneur would need approximately ₹10 lakh of their own contribution.
The remaining ₹30 lakh could potentially be financed through the term loan.
However, the investment decision should not depend only on the availability of financing.
The entrepreneur must also calculate electricity expenses, charger maintenance, software costs, site expenses, payment processing charges, and expected customer demand.
A charging station that cannot generate enough operating cash flow may struggle to service its debt even when financing terms appear attractive.
What Is the IND Green Charge Scheme Rate of Interest?
The published IND Green Charge Scheme rate of interest ranges from 9.00% to 9.25% per annum.
The actual applicable rate should be confirmed with the bank during the application process.
The scheme also specifies nil processing charges.
Nevertheless, borrowers should examine other possible expenses, including documentation, insurance, security-related costs, and credit guarantee premiums where applicable.
Illustrative Monthly EMI Calculation
The following calculations assume a 9% annual interest rate, standard monthly reducing-balance EMIs, and 96 equal monthly payments without a moratorium.
| Loan amount | Approximate monthly EMI |
|---|---|
| ₹15 lakh | ₹21,975 |
| ₹30 lakh | ₹43,951 |
| ₹75 lakh | ₹1,09,877 |
Actual repayments will depend on the sanctioned rate, repayment structure, disbursement schedule, and moratorium conditions.
These illustrations are not official repayment quotations.
IND Green Charge Scheme Repayment Methods
Borrowers can potentially use one of three repayment structures, depending on the bank’s assessment and approved terms.
1. Equated Monthly Instalments (EMIs)
An EMI generally combines principal and interest into a regular monthly payment.
This approach provides a relatively predictable repayment schedule and may suit businesses with stable monthly revenue.
2. Equal-Principal Repayment
Under an equal-principal structure, the borrower repays a broadly equal principal amount during each repayment period.
Interest is calculated on the outstanding balance, so the overall instalment generally decreases as the loan is repaid.
3. Ballooning Repayment
A ballooning structure provides for comparatively larger repayments at specified later stages.
The precise repayment schedule depends on the sanctioned arrangement.
This option requires careful cash-flow forecasting because a large future payment can create financial pressure.
Is There a Moratorium Period?
Yes. The scheme provides for a moratorium of up to six months.
However, interest must be serviced during the moratorium.
The maximum 96-month tenure includes the moratorium period. It should not be interpreted as eight years of repayment plus an additional six months.
What Security Is Required for an IND Green Charge Loan?
The IND Green Charge Scheme security requirements include primary security over assets created using the loan.
The charging equipment and other financed movable assets are subject to hypothecation.
Hypothecation means the bank holds a security interest in the financed assets while the borrower generally retains possession and uses them for business operations.
Additional security requirements depend on the loan amount.
| Loan category | Published security provision |
|---|---|
| Up to ₹20 lakh | CGTMSE coverage |
| Above ₹20 lakh | Collateral, CGTMSE, or hybrid arrangement |
CGTMSE refers to the Credit Guarantee Fund Trust for Micro and Small Enterprises.
Where guarantee coverage applies, the premium must be borne by the customer.
The scheme also specifies personal guarantees from promoters, partners, and property owners.
Applicants should understand that CGTMSE coverage does not automatically make a loan collateral-free or remove personal guarantee obligations.
The bank will determine the applicable security structure during appraisal.
How to Apply for the IND Green Charge Scheme
Applicants interested in the IND Green Charge Scheme application process should begin by contacting an Indian Bank branch and discussing their proposed EV charging infrastructure project.
The published scheme information establishes the financing conditions but does not provide a separate, fully documented online application procedure specifically for this product.
The following steps represent a practical preparation and application approach.
Step 1: Prepare a Detailed Project Report
A Detailed Project Report (DPR) should explain the proposed charging business, location, infrastructure requirements, capital investment, operating expenses, and expected revenue.
Include the charger types, charging capacity, intended customer segments, and realistic utilization estimates.
Step 2: Arrange Supporting Documents
Depending on the applicant and the bank’s requirements, useful documents may include:
- PAN and applicable identity documents.
- Business registration or incorporation records.
- Udyam registration, where applicable.
- Financial statements and bank statements.
- Property ownership or lease documents.
- Charging equipment quotations.
- Electricity connection feasibility details.
- Projected revenue and cash-flow statements.
This is a preparation checklist, not an officially published exhaustive document list for the scheme.
Step 3: Contact the Bank
Discuss the proposed loan amount, financing eligibility, security requirements, and application procedure with the relevant branch.
Applicants can also use the bank’s general enquiry facilities to seek guidance.
Step 4: Complete Project and Credit Appraisal
The bank evaluates the proposal, financial capacity, eligible investment, repayment feasibility, and security arrangements.
Additional documents or project clarifications may be requested.
Step 5: Review the Sanction Terms
Before accepting the loan, examine the sanctioned interest rate, repayment method, security conditions, moratorium, guarantee premiums, and other contractual obligations.
Only proceed when the project economics support the repayment commitment.
Major Challenges in Starting an EV Charging Station Business
Access to financing solves only one part of the infrastructure development challenge.
- Low charger utilization: An expensive charging station can remain unprofitable if too few vehicles use it.
- Electricity connection costs: Grid capacity, upstream infrastructure, and connection timelines can influence project viability.
- Equipment reliability: Charger downtime reduces revenue and damages customer trust.
- Location selection: Visibility alone is insufficient. Drivers need convenient access, suitable charging power, and dependable facilities.
- Operating costs: Electricity expenses, demand-related charges, maintenance, rent, network fees, and customer support can significantly affect margins.
India’s 2024 EV charging infrastructure guidelines establish a framework for installing and operating charging facilities.
Setting up an EV charging station is a de-licensed activity, but operators must still comply with applicable technical, safety, electrical, and local requirements.
Before establishing a commercial charging facility, entrepreneurs should understand India’s charging regulations, electricity connection requirements, and safety standards. Our detailed EV Charging FAQs explain these important technical and regulatory considerations.
Expert Insight from Electric Vehicle Talks
The biggest opportunity under IND Green Charge is not simply to install more chargers. It is to develop charging facilities that remain financially sustainable over their operating life.
For new entrepreneurs, we recommend prioritizing five factors.
First, validate demand before purchasing equipment. Count likely EV users, study vehicle movement, assess competing stations, and identify potential fleet customers.
Second, select charging capacity according to actual requirements. A high-power DC charger is not always financially superior to a lower-capacity installation. Equipment selection must match vehicle compatibility, dwell time, and anticipated energy sales.
Third, evaluate grid infrastructure early. An attractive site may become uneconomical if major electrical upgrades are required.
Fourth, calculate revenue conservatively. Estimate profitability using realistic charger availability and energy utilization rather than assuming continuous demand.
Finally, choose a repayment structure that matches cash flow. Charging businesses may experience gradual demand growth, making repayment planning particularly important.
Locations with dependable fleet demand or strong commercial activity may provide a more predictable starting point than sites selected purely on anticipated future EV adoption.
People Also Ask
1. What is the maximum loan available under IND Green Charge?
The maximum sanctioned loan amount under the scheme is ₹10 crore. The minimum eligible loan amount is above ₹10 lakh, subject to bank approval.
2. Can individuals apply for the IND Green Charge Scheme?
Yes. Individuals are included among the eligible applicant categories. However, the proposed infrastructure project must meet financing and eligibility requirements.
3. Is IND Green Charge available for EV charging franchises?
Yes. Both standalone and franchise-based charging station business models are covered.
4. Can the loan finance solar-powered EV charging stations?
The scheme permits consideration of eligible renewable energy integration, including solar components associated with charging operations.
5. Is there any processing fee?
The published processing charge is nil. Borrowers should still confirm other applicable expenses and guarantee-related premiums.
6. Does IND Green Charge provide a government subsidy?
No automatic government subsidy is specified under the scheme. It is a bank financing product, not a direct subsidy programme.
7. Can existing charging stations obtain financing for expansion?
Yes. The scheme supports establishing, expanding, upgrading, and modernizing qualifying charging infrastructure.
FAQs About IND Green Charge
1. What is the minimum investment required for IND Green Charge?
The scheme specifies loans above ₹10 lakh rather than a universal minimum total project investment. With a 25% margin, project investment and bank finance must be evaluated together.
2. What is the maximum repayment tenure?
The maximum loan tenure is 96 months, equivalent to eight years, including any sanctioned moratorium.
3. Is the loan interest-free during the moratorium?
No. Interest must be serviced during the moratorium period, which can extend up to six months.
4. Can a charging station be established in a residential society?
Residential societies are included among the eligible location categories. However, the project must satisfy applicable permissions, electrical requirements, and financing conditions.
5. Does the scheme cover EV charging station software?
Yes. Eligible charging infrastructure hardware and software costs are included in the scheme’s project-cost provisions.
6. Can first-time entrepreneurs apply?
Prospective MSME businesses and other eligible applicants can seek financing. Approval will depend on the project and borrower assessment.
7. Is an EV charging station profitable in India?
Profitability depends on capital investment, charging utilization, electricity costs, pricing, maintenance, financing expenses, and location. A feasible project requires sufficient recurring cash flow to cover operating costs and debt repayments.
Conclusion: IND Green Charge Scheme
The IND Green Charge Scheme introduces a dedicated financing option for entrepreneurs and businesses seeking to participate in India’s expanding EV charging ecosystem.
With loans of up to ₹10 crore, interest rates of 9.00%–9.25%, and a maximum repayment tenure of eight years, it offers a structured route to funding qualifying charging infrastructure projects.
Its support for public, captive, fleet, and franchise-based charging facilities also makes it relevant to different business models.
However, financing should always follow a realistic assessment of location, electricity infrastructure, charging demand, operating expenses, and repayment capacity.
As electric mobility expands beyond major metropolitan markets, well-planned charging facilities can improve convenience for EV drivers while creating long-term business opportunities.
For more practical guidance on electric vehicle technology, charging infrastructure, EV ownership, and sustainable mobility developments, explore the latest insights and resources at Electric Vehicle Talks.
Related Articles:
