In line with the global shift towards sustainable transportation, India is pushing for the widespread adoption of electric vehicles (EVs).
To facilitate this transition, the Indian government has implemented various incentives, including tax benefits, to encourage consumers to purchase EVs.
The government of India in this regard has set an ambitious target of achieving 30% electric vehicle penetration by 2030.
However, the high upfront costs of electric vehicles remain a significant challenge.
To address this obstacle, EV financing has emerged as a crucial catalyst for driving EV adoption in India.
Several banks are now offering specialized car loans tailored for electric vehicle purchases, here is a look at some banks that are offering EV loans.
State Bank of India (SBI) Green Loan
The State Bank of India offers a 'Green Car Loan' specifically designed to incentivize customers to buy electric vehicles. The loan features a concession of 25 basis points (BPs) in the applicable interest rate for normal car loans across all customer categories.
The loan margin can range from up to 90% to 100% on select models, based on the on-road price.
Interest rates for the green car loan vary from 8.60% to 9.30%.
The minimum repayment period is three years, and the maximum is eight years.
HDFC EV Car Loan:
HDFC Bank provides the Zip-Drive Instant New Electric Car Loan, offering up to 100% financing on select EV models.
This loan is available to both salaried and self-employed individuals.
Customers with an existing car loan from HDFC Bank can also avail top-up green car loans for electric vehicle purchases with zero documentation requirements.
The repayment tenure for the loan ranges from 12 months to 96 months, offering flexibility to borrowers.
Additionally, the HDFC Bank EV loan is eligible for income tax benefits under Section 80EEB of the Income Tax Act.
Axis Bank EV Loans:
Axis Bank offers car loans for new electric cars of all variants. Salaried individuals can obtain up to 85% of the on-road price, while self-employed individuals can secure up to 80%.
The loan tenure extends up to 84 months or seven years.
The on-road price includes the ex-showroom price, road tax, and insurance.
Union Bank Green Miles:
Union Bank of India offers the Green Miles car loan scheme to facilitate the purchase of electric vehicles.
The loan is available for both new electric four-wheelers and two-wheelers. Resident Indian citizens, NRIs, and companies/firms can avail this loan.
The loan tenure for electric four-wheelers is 84 months, while for electric two-wheelers, it is 36 months (or 60 months under a tie-up arrangement).
The borrower must contribute a margin of 10%, which will be adjusted against any upfront subsidy received from the government.
These specialized EV financing options have made electric vehicles more affordable and accessible to a wider range of customers in India. As a result, the availability of EV financing has accelerated the adoption of electric vehicles across the country, driving India towards a greener and more sustainable transportation future.
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