Banks offer special interest rates for 2-wheelers and electric cars
Indians are increasingly choosing electric vehicles as gasoline and diesel prices are rising almost daily. There are nearly 10 lakh of electric vehicles including two-wheelers and four-wheelers in India and the government is offering subsidies to encourage people to go electric. Buyers can also take advantage of special interest rates that some Indian banks offer on the purchase of electric vehicles.
The country’s largest lender, the State Bank of India (SBI), was the first banking entity to offer a special car loan to encourage customers to choose electric vehicles. The Green Loan System offers car loans at an interest rate 20 basis points (bps) lower than standard car loans offered by the bank.
The lending margin is 90% of the vehicle’s on-road price, although it can go up to 100% for some models. The repayment period ranges from 3 to 8 years, with the maximum loan value depending on the category of services a client is involved in and their total annual income.
Union Bank has also launched its own car loan specific to electric vehicles, the Union Green Miles. It is available for two-wheelers and four-wheelers across India with a loan margin of 90% of the vehicle’s on-road price excluding any subsidy.
Customers get a 20 basis point concession when buying electric vehicles over other vehicles. Although there is no loan cap for four-wheelers, there is a maximum loan cap of Rs 10 lakh for two-wheelers. Loan terms are seven years for four-wheelers and three years for two-wheelers, with five-year loan terms for some two-wheeler linkages.
Axis Bank’s new car loan is not specifically aimed at electric vehicles, but it offers up to 85% margin and a 50 basis point concession on the purchase of any electric vehicle. With a maximum duration of seven years, the program is available in Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune, Jaipur, Ludhiana, Kochi, Ahmedabad, Chennai, Vishakhapatnam, Trivandrum, Surat, Kolkata and Chandigarh.
(Edited by : Shoma Bhattacharjee)