EV Loan & EMI Options from Indian Banks

Electric cars (EVs) are becoming a popular choice in India so everyone will eventually look for Electric car loan. With rising fuel prices and increasing awareness about the environment, more and more people are thinking of switching to electric vehicles. But EVs can be expensive to buy upfront. That’s where car loans and EMI options come in.

If you’re planning to buy an electric car in India, this article will help you understand:

 How electric car loans work

 Which banks offer EV loans

 Interest rates, EMI options, and benefits

 And how to choose the best option for your needs

We’ll keep it simple, detailed, and easy to understand.

What is an Electric Car Loan?

An Electric Car Loan is just like a regular car loan. Banks and financial institutions give you money to buy an electric car, and you repay that money in EMIs (Equated Monthly Instalments) over a fixed pe

 The cost of the car

 Insurance

 Registration charges (in some cases)

You repay the amount with interest, usually over a period of 1 to 7
years.

Top Banks Offering Electric Car loan in India

Here are some of the leading Indian banks and their loan features for electric vehicles:

1. State Bank of India (SBI) – Green Car Loan

 

 Interest Rate: Starts from 8.75% p.a.

 Loan Tenure: Up to 7 years

 Loan Amount: Up to 90% of on-road price

 Special Feature: Lower interest than normal car loans (discount of 0.20%)

2. HDFC Bank – Car Loan for EVs

 Interest Rate: From 9.00% to 10.50%

 Loan Tenure: 1 to 7 years

 Loan Amount: Up to 100% of the ex-showroom price

 Processing Fee: 0.5% to 1%

3. ICICI Bank – Electric Car Finance

 Interest Rate: Starts at 8.90%

 Loan Tenure: Up to 7 years

 Loan Amount: Up to 100% of on-road price

 Special Offers: Flexible repayment and instant approval

4.Axis Bank – Auto Loan for EVs

 Interest Rate: 8.95% to 10.75%

 Tenure: Up to 7 years

 Loan Amount: 85% to 100% of on-road price

5. Punjab National Bank (PNB) – Green Vehicle Loan

 Interest Rate: From 8.75% p.a.

 Loan Tenure: Up to 7 years

 Loan Amount: Up to 90% of car value

 Processing Fee: Nil for EVs

   Government Support for EV loan

The Indian government is also supporting EV adoption:

 FAME-II subsidy (for some models)

 No registration charges in some states (like Delhi, Gujarat)

 Lower road tax for electric cars

 Some banks offer 0.20% lower interest on green loans

Documents Required for EV loan

 PAN card and Aadhaar card
 Address proof (electricity bill, rent agreement, etc.)
 Salary slips or income proof
 Bank statements (last 6 months)
 Proforma invoice from car dealer

Once documents are approved, the loan is usually disbursed within 2 to 5 days.

Conclusion: Is an EV Loan Worth It?

Yes, absolutely. If you’re planning to buy an electric car, taking a loan makes it much easier. With rising fuel prices and better financing options, EVs are not just affordable—but also smart long-term
investments.

Indian banks are now offering special EV loan products, with lower interest and longer tenure. Combined with government subsidies and low running costs, buying an EV through a bank loans is a great idea in
2025.

If you invest in it now you will have long term insurance cause its not just user friendly but environment friendly. So go ahead and buy your first electric car.