EV Loans: Leading banks are offering electric vehicle loans at lower interest rates; Here’s how to apply

Despite being in its nascent stage, the electric mobility sector in India is witnessing phenomenal growth due to the factors like lower costs and obviously rising fuel price hike in the country. The government is also offering subsidies on both electric two-wheelers and electric four-wheelers in order to cut the purchase cost and promote faster EV adoption in the country. Yet buyers find them hesitant to opt for an EV due to their comparatively high cost than the ICE vehicles. 

To their rescue, leading banks like SBI, Axis Bank, and Union Bank are offering auto loans specifically for electric vehicles at relatively lower interest rates. And yes, these EV loans are available for both two-wheeler and four-wheeler electric vehicles. So, if you are planning to buy an electric vehicle as your next mobility solution, it’s the right time to consider one. 

We have here created a complete guide to share major details, requirements, and methods to apply for an EV auto loan from major financial institutions including SBI Bank, Union Bank of India, and Axis Bank. Let’s explore.

SBI Bank EV Loan details

The EV loan offered by SBI is called as SBI Green Car Loan which comes into existence as the first EV-specific loan program in India. Under the SBI Green scheme, the state-owned bank provides car loans lower than 20 basis points (0.2%) than the regular plan. As per SBI information, users can get SBI Green Loan at an interest rate from 7.15% to 7.50% with no processing fee. 

General eligibility criteria for SBI Green Car Loan include the applicant’s age between 21 to 67 years a yearly income of a minimum of 3 lakhs, and a repayment period between 3 – 8 years. Below are the steps to apply for SBI Green Car Loan:

1. Go to the official website of SBI Green Loan or Click Here. 
2. Find the option – ‘Green Car Loan: For Electric Cars’ at the bottom of the page. 
3. Click on Apply button to be redirected to the application page. 
4. Fill the form with the right and required information including details like existing SBI Bank account, car model, income, and contact. 
5. Click on the button ‘Get Loan Quote’ to receive further response or intimidation.

Union Bank EV Loan details

The Union Bank of India offers a well-curated loan scheme for electric vehicles called Union Green Miles. The bank offers the EV loan to both four-wheelers at an interest rate of 7.40% and two-wheelers at a 9.90% annual rate. It includes relief of 20 basis points than the existing car loans. The repayment period for four-wheelers is 7 years and for two-wheeler is 3 years.

UBI offers the Union Miles loan to both Indian citizens and NRIs of age 18 to 75 years. The applicant can either be an individual, a joint family member, or a registered company. The subsidy amount offered on the selected electric car or bike will be deducted from the loan amount from the bank side. 

Here are the steps to apply for Union Bank EV Loan:

1. Head to the Union Bank portal for car loan services or Click Here.
2. Thoroughly read the eligibility criteria and click on the apply link mentioned at the end.
3. Click on ‘Vehicle Loan’, then the ‘Retail Loan’ option.
4. A form portal will appear. Again, select the required type of loan as a Vehicle Loan.
5. Fill out the form, save it, and submit it to get the proposal.

Axis Bank EV Loan details

Among the private banks, Axis Bank has made special arrangements for EV customers offering relief of 50 basis points against the regular car loans. The bank offers EV car loans to customers including salaried individuals, self-employed, Hindu Undivided families, partnership firms or LLP owners, and agriculturists. 

The interest rate for EV cars under the Axis Bank scheme is 7.35% per annum with a repayment period of up to 7 years. Unlike SBI, Axis Bank charges a processing fee of around Rs 3,500 to Rs 5,500 post the approval of an EV car loan.

Here are the steps to apply for an Axis Bank EV loan:

1. Visit the official Axis Bank loan portal or Click Here. 
2. Click on the ‘Apply Now’ button.
3. Enter your PAN details or existing Axis Bank debit card number to apply for the loan. 
4. Fill in the car details, loan amount, and related information when asked. 
5. Select your nearest dealer and submit the form.
6. Bank will contact you soon upon verifying the details and requirements.