As Gas, Petrol and Diesel costs rise virtually daily, more Indians are opting for electric vehicles. In India, there are over 10 lakh Electric Vehicles (EVs), including two-wheelers and four-wheelers, and the government is granting incentives to encourage people to adopt electric.
Buyers can also take advantage of special interest rates offered by select Indian banks on the purchase of electric automobiles.
State Bank Of India (SBI) Green Loan
The State Bank of India (SBI), the country's largest lender, was the first to provide a special vehicle loan to encourage clients to purchase EVs. The Green Loan scheme provides vehicle loans at a 20 basis points (bps) cheaper interest rate than the bank's conventional auto loans.
The loan margin is 90% of the vehicle's on-road price, however it might go up to 100% for some models. The payback time ranges from 3 to 8 years, with the maximum loan amount determined by the type of services a client provides and their total annual revenue.
Union Green Miles
Union Bank has also introduced its own Electric Vehicle (EV) loan, the Union Green Miles. It is offered in India for both two-wheelers and four-wheelers, with a loan margin of 90% of the vehicle's on-road price, minus any subsidies.
When compared to conventional vehicles, customers receive a 20 basis point discount when purchasing EVs. While there is no loan ceiling for four-wheelers, there is a Rs 10 lakh credit ceiling for two-wheelers. Loan terms for four-wheelers are seven years, three years for two-wheelers, and five years for specific two-wheeler tie-ups.
Axis New Car
Axis Bank's New Car Loan is not expressly designed for EVs, although it does provide up to an 85% margin and a 50 basis point discount on the purchase of any EV.
The plan is offered in Delhi National Capital Region (NCR), Mumbai, Bengaluru, Hyderabad, Pune, Jaipur, Ludhiana, Kochi, Ahmedabad, Chennai, Vishakhapatnam, Trivandrum, Surat, Kolkata, and Chandigarh, with a maximum duration of seven years.