WHY BaaS

A Better EV Financing Architecture

In EV financing, acquisition cost is high because the battery is expensive upfront. Affordable financing requires lower down payment and smaller EMIs, usually through higher LTV and longer tenure.

This creates a structural trade-off for lenders:

• Make EVs affordable and accept higher credit loss risk.
• Control credit risk and keep EV ownership unaffordable.

This trade-off exists because resale value is hard to predict and depends on battery degradation and usage behavior.

Why This Happens in the Market

Lenders that try to offer affordability without solving asset-risk dynamics often absorb elevated credit costs. Lenders that stay conservative remain less affordable and limit market participation.

How Vidyut BaaS Solves the Trade-Off

Vidyut’s proprietary Battery-as-a-Service solution restructures financing around usage-linked risk.

• Customer affordability improves with lower down payment and lower EMI.
• Credit losses decrease through lower LGD.
• Unit economics improve with higher ROA.
• Risk becomes more predictable through usage-linked structures.
• Advantages compound with a data and recovery feedback loop.

Unlike a financing feature, BaaS is a comprehensive risk architecture aligning customer usage, asset value, and lender exposure.

Why Customers Choose BaaS

Traditional lenders often restrict LTV and tenure to manage EAD. That raises down payment and EMI, reducing affordability. BaaS separates battery degradation risk from vehicle ownership risk by linking repayment to usage.

• Lowest upfront down payment
• Lower fixed EMIs
• Repayment aligned to earning potential

Monthly Outflow Comparison

Note: Indicative for a 3W EV.

Key Difference

• Traditional loans are typically more expensive for customers, and lowering EMI often increases lender risk.
• BaaS lowers EMI without increasing risk.

If you are more keen to know how it works, talk to us.