Some top banks offer electric vehicle loans with special lower interest rates by which you can easily get the loan. SBI Green Loan, Axis New Car Loan, and Union EV Loan are among them.
Continue rising price of petrol and diesel, common people are showing more interest in electric vehicles. Although the electric mobility sector is just in the beginner stage. Despite it, the electric vehicle industry is witnessing tremendous growth and it will increase more in near future.
Electric Vehicles are more expensive than regular petrol and diesel-powered vehicles and it is near about 40 percent high. The government is providing some incentives that reduce the cost of EVs but still it is not affordable enough to purchase by ordinary people.
To make the buying process easier for EV purchasers, several banks and NBFCs are offering car loans at relatively lower interest rates. This loan can be taken for 2 wheeler as well as 4 wheeler with added benefits like tax exemption, which are mostly not found in other car loans.
In this article, you can find which banks or NBFCs are giving electric vehicle loans and how to apply for them.
Top Banks which are offering Electric Vehicle (EV) loan
Following are the top banks that offer electric vehicle loans with special interest and how to apply.
SBI Green Car Loan
As the name suggests, SBI Green Car Loan is offering electric vehicle loans with lower interest rates for both two-wheeler and four-wheelers. It is the first bank to offer this which is dedicated to EVs in India. As per the State Bank of India’s information, an interest rate of 7.25% to 7.60% (on and from 15-05-2022) has been fixed for taking loans for the electric vehicle under the SBI Green Car Loan scheme.
SBI Green Car Loan eligibility
To avail the electric vehicle loan one must be above 20 years of age and up to 67 years of age and have an annual income of 3 lakh (for a Person engaged in agricultural and allied activities- 4 lakh). The repayment period of the loan is from 3 years to a maximum of 8 years, whichever an applicant is comfortable with. The total amount sanctioned through this scheme will be up to 90 percent of the on-road price. This loan is not entitled to electric bikes.
Documents required for loan
The following documents will be needed (may require more documents as per bank requirements) when applying for this loan-
- At least 6 months bank account statement
- Passport size photo 2 copies
- Proof of identity (copy of any one – Passport /Driving license /Voter ID card /PAN card etc.)
- Address proof (copy of any one – Ration card /Electricity bill /Passport /LIC policy /Driving License /Voter ID card etc.)
- Income Proof
- Income Tax return or Form 16 for 2 years
How to apply for SBI Green Car Loan
Below are the steps to apply for a loan-
- Go to the official website of Green Car Loan or you can click here
- Then scroll down and find the option ‘Green Car Loan: For Electric Cars’ and click ‘Apply Now’ button
- You will be redirected to the SBI auto loan web page
- Submit the details as per the option available including whether you are an existing customer of the bank or not, your phone number, etc.
- Check the option of Agree
- Click on Submit button. Then you will receive a response from SBI and take appropriate action.
Union Green Miles – Union Bank Electric Vehicle Loan
The Union Bank of India is a government-owned bank that offers an electric vehicle loan known as Union Green Miles. Two-wheeler and four-wheelers both are included in this scheme.
Union Green Miles loan eligibility
In order to get the Green Miles loan, the applicant must be aged between 18 years to 75 years. The applicant either be an individual, a joint family member or jointly with other eligible co-applicant (maximum 3 applicants). The loan amount that can be sanctioned through this scheme is Rs 10 lakh for two-wheeler and No Limit (up to 100 percent) for four-wheelers. The rate of interest (as on and from 11-05-2022) for Green Miles varies from 7.2% to 10.2%. The loan repayment period for 2 wheeler is 36 months and for 4 wheeler is 84 months.
How to apply for Union Green Miles loan
Below are the steps to apply for a loan-
- Go to the official website of Union Bank of India and go to the vehicle loan or you can click here
- Read the information provided on the page and then click on ‘Vehicle Loan’ on the right side.
- Then click on ‘Retail Loan’ section
- Click on ‘Apply for Loan’ section
- Then select the type of loan as ‘vehicle loan’ and fill the form correctly
- Now click submit for getting a response from the bank side.
Axis Bank EV Loan
One of the top private sector banks, Axis Bank has also come up with a relief of 50 basis points against the regular car loan for an electric vehicle loan. The bank offers EV loans to its customer including all types of professional individuals. The maximum tenure for repayment is 7 years.
Eligibility for Axis Bank EV Loan
The age required for availing loan is between 18 years to 65 years depending on the type of customer (for the salaried person it is 21 to 60 years, for self-employed, it is 18 to 65 years, etc.). The annual income should be a minimum of 1.8 lakh to a maximum of 2.4 lakh for different types of customers. The maximum loan amount will be 80 to 85 percent of the on-road price of the car.
Document needed for loan
- Application form
- Office or Business proof for a self-employed person
- Income proof
- Income Tax Return or Form 16 of 2 years
- Latest 3 months bank statement
- Age proof (PAN card/ Driving License/ Passport/ Birth Certificate)
- Sign verification proof (PAN / Passport/ Bankers Verification/ Aadhaar bio-metric authentication)
How to apply for an EV loan in Axis Bank
Following are the steps to apply for the loan-
- Visit the official Axis Bank Loan portal or you can click here
- Click on ‘Apply Online’ on the New Car Loan tab
- Now you are redirected to the login page where you can log in with your pan number and mobile number or if you are a customer of the bank then log in with the debit card
- Then you will get an OTP and by using it you will be in
- Fill up the form by giving all details and submit
- After submitting you will be interacted with by the bank
Frequently Asked Questions on Electric Vehicle Loan
Can a person get a Tax Exemption on an Electric Vehicle loan?
Yes. Under Section 80EEB, you can claim a deduction up to Rs 1,50,000
Can I get any other deduction excluding tax exemption?
Yes. You may get exemption of car registration fee, road tax exemption, etc., and any other subsidies given by the state government. Also, the central government offers benefits under the FAME II scheme.
Can I get a loan for my 2-wheeler also?
Yes. Some specific bank offers loan for electric two-wheeler.
The Indian government is encouraging citizens to adopt electric vehicles as early as possible. The government aims to achieve zero-emission carbon by the year 2030 and action has been taken accordingly. Banks have also taken the initiative to motivate buying EVs by offering attractive loan schemes. Now, we have to wait for how quickly we can turn to a greener environment. You can share your views in the comment box.