List Of Banks Offering Special Interest Rates On Electric Vehicle Loans

Banks offering special interest rate loans for electric vehicles will encourage customers to purchase electric vehicles.

The introduction of the lower-interest-rate loan for electric vehicles is expected to encourage more customers to purchase electric vehicles, which will further lower vehicle emissions and cut down on emissions from gasoline and diesel vehicles, according to a statement.

Electric vehicles, including plug-in hybrid vehicles, will grow in popularity in the next decade. The market is expected to grow by 50% by the year 2025. The electric vehicle market is expected to reach 10 million units by 2025 and grow to 20 million units by 2030, according to recent market projections. 

Lenders are capitalizing on this market by offering low cost car loans to customers who purchase electric vehicles. The loans are offered at a low interest rate than traditional car loans, which is expected to encourage more customers to purchase electric vehicles. 

SBI Green Loan

  • To encourage consumers to purchase electric vehicles, the State Bank of India launched the country's first 'Green Car Loan' (Electric Vehicle). 
  • The new system will provide loans at a 20 basis point lower rate than the current vehicle lending scheme. 
  • According to the SBI website, customers can get up to 90% of the on-road price as loan amount. Selected models can even get 100% of the on-road price. 
  • Green car loan interest rates range from 7.25% - 7.60%. 
  • Learn more about SBI Car Loan Interest Rates

Union Green Miles - from Union Bank of India

  • Available for individuals in the age group of 18-75
  • Up to 100% financing for new electric cars. Up to 90% financing for new electric 2 wheelers. 
  • Repayment of up to 84 months for 4 wheelers
  • Interest rate at 7.20% - 8.30% (based on the applicant’s credit score)
  • Learn more about Union Bank Of India Car Loan Interest Rates

Axis Bank Car Loans

Axis Bank offers car loans for electric vehicles of all price ranges and categories. 

  • Applicants can avail up to 100% of car value as loan
  • Repayment terms of up to 7 years
  • 50 bps lower interest rate for electric vehicles
  • Interest rates range from 7.85%-14.50%

Purchasing An Electric Vehicle Can Get You Tax Exemption

  • Income tax exemption is available on interest payments of up to Rs. 1.50 lakh made on a loan to purchase an electric vehicle. 
  • You can take advantage of this under Income Tax Act Section 80 EEB. In addition to 80C, this exemption will be available. 
  • This tax credit applies to both four-wheeler and two-wheeler electric vehicles.
  • The loan is only available to individual taxpayers or business owners and must be approved between April 1, 2019 and March 31, 2023. 
  • In some states, electric vehicles are exempt from paying sales tax and registration fees.

Why Should You Choose Electric Vehicles For Your Next Vehicle Purchase? 

What makes Electric Vehicles (EV) so appealing? Firstly, unlike traditional oil-based vehicles (e.g., motorbikes, cars, trucks, etc.), EVs produce and burn electricity. This inherently means that EV's have much lower emissions than traditional fossil fuel vehicles.

  • Another reason for choosing Electric Vehicles is because they are safe, reliable, and have zero emissions. They are also affordable.
  • The government is increasingly turning to subsidies to encourage people to buy EVs after all incentives are phased out. Lenders are offering government-backed car-loan interest rate discounts to lure in car buyers.
  • Emission of the greenhouse gasses that cause climate change is one of the greatest challenges humanity faces today.
  • The comparison of current greenhouse gas emissions from cars including gasoline to electric vehicles (EV) has long been viewed as the '''best comparison''' for making a decision.
  • EV's are expected to reduce global greenhouse gas emissions by at least 5% by 2025. 

What Is The Process To Apply For An Electric Vehicle Car Loan? 

  • An applicant must first log in to an online banking system. At some point, the applicant must complete the Online Application and submit the application.
  • Some lenders may ask applicants to go to a branch location to complete their application, which can take time and add additional costs.
  • Overall, the process is very simple and easy to complete. It takes less than a week for the loan to be approved. Once approved, the lender will pay the car dealer directly and you can get the car delivered to your home.

Electric Vehicle RTO Regulations in India

The rules and regulations governing electric vehicles in India have always been murky. Constant change is difficult to keep track of. The Indian government has done a good job of making all of the guidelines people-friendly and promoting electric vehicles over traditional vehicles. 

Car owners can get their Electric Vehicles registered at the nearest RTO by submitting the relevant documents. Additionally, they have to submit an approval from the Automotive Research Association of India (ARAI).

Is A License Plate Required For EVs?

According to the regulations associated with the Central Motor Vehicle Rules, 1989, all registered vehicles after April 1st, 2019 must have a HSRP (High-Security Registration Plate). Only government offices are permitted to provide this registration, which allows them to maintain a comprehensive database of all vehicles and prevents theft.

  • Private EVs have a green background and white letters on their license plate
  • Commercial EVs have a green background with yellow letters on their license plate

FAQs of Banks Offering Special Interest Rate Loans For Electric Vehicles

1:Do banks offer loans to buy electric cars? 

Yes, all leading banks offer car loans to buy electric cars. 

2:Is the interest rate on car loans different for electric vehicles? 

Most banks offer the same interest loans for electric vehicles too. However, a few banks, like SBI, AXIS Bank, & Union Bank, offer some rebate in the interest rate to purchase electric vehicles. 

3:How much car loans can I get to purchase an electric vehicle? 

Similar to other car loans, electric vehicle loans also offer up to 90% of the on road price of the vehicle. 

4:Are EVs required to get a license plate?

Yes, EVs are also required to register their vehicle in the RTO and get a license plate. 

5:Can companies buy electric vehicles? 

Yes, electric vehicles can be bought by both individuals and registered firms and companies.