Indians are increasingly choosing electric vehicles as petrol and diesel prices go up almost daily. There are nearly 10 lakh EVs, including two-wheelers and four-wheelers, in India and the government is offering subsidies to encourage people to go electric. Buyers can also avail of special interest rates that some Indian banks are offering on the purchase of electric vehicles.
SBI Green Loan
The country’s largest lender, the State Bank of India (SBI), was the first banking entity to offer a special auto loan to encourage customers to choose EVs. The Green Loan system offers auto loans at an interest rate that is 20 basis points (bps) lower than the standard auto loans being offered by the bank.
The loan margin is 90 percent of the on-road price of the vehicle, though it can extend up to 100 percent for certain models. The repayment period extends from 3-8 years, with the maximum loan value depending on the category of services a customer is involved in and their total yearly income.
Union Green Miles
Union Bank has also launched its own EV-specific car loan, the Union Green Miles. It is available for both two-wheelers and four-wheelers across India, with a loan margin of 90 percent of the on-road price of the vehicle, excluding any subsidies.
Customers enjoy a 20 bps concession when purchasing EVs when compared to other vehicles. While there is no loan ceiling for four-wheelers, there is a maximum loan ceiling of Rs 10 lakh for two-wheelers. The loan tenure is of seven years for four-wheelers and three years for two-wheelers, with five-year loan tenures for certain two-wheeler tie-ups.
Axis New Car
Axis Bank’s New Car Loan is not specifically targeted towards EVs, but it gives up to 85 percent margin and a 50 bps concession on the purchase of any EV. With a maximum tenure of seven years, the scheme is available in Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune, Jaipur, Ludhiana, Kochi, Ahmedabad, Chennai, Vishakhapatnam, Trivandrum, Surat, Kolkata, and Chandigarh.
