Electric Vehicles are becoming popular in India. Sustainability and eco-friendly living are the focus. Financial Institutions are also supporting this. They are offering special car loans.

According to the HDFC Bank's website," An EV car loan is an auto loan designed to finance the purchase of electric vehicles. These loans function similarly to traditional car loans, where the lender provides funds to you to purchase the vehicle, and you repay the loan in monthly installments over a predetermined period."

EV car loans offer a lower interest rate than traditional car loans, which translates to savings over the loan tenure. EV buyers may also benefit from government subsidies, reduced registration fees, and tax exemptions. These benefits are not available with regular car loans.

Competitive interest rates on vehicle loans are available. Several Indian Banks are providing this opportunity. They offer lower rates for electric vehicles. This promotes eco-friendly transportation. Indian Overseas Bank offers interest rates starting from 8.15% for electric vehicles and 8.35% for non-electric ones.

According to the NITI Aayog website, the key benefits include:

Purchase Incentives: On the cost of the electric vehicle, a direct discount is provided to the user.

Coupons: Amount reimbursement as a financial incentive

Interest Subventions: While availing a loan, the discount is offered.

Road tax exemption: Road tax at the time of purchase is waived off.

Registration fee exemption: The one-time registration fee applicable on a new vehicle purchase is waived off

Scrapping incentives: Provided upon deregistering old Petrol and Diesel Vehicles

Other incentives include interest-free loans, top-up subsidies, and special incentives on electric three-wheelers, which can be availed.

Karnataka Bank has the highest rates among the listed banks, at 9.32% for electric vehicles and 9.42% for non-electric vehicles.

State Bank of India offers 9.10% on loans for EVs and 9.20% on loans for other vehicles, while HDFC Bank offers interest rates of 9.20% on electric vehicles and 9.27% on non-electric vehicles.

Punjab and Sind Bank charges 8.40% for electric vehicles and 8.50% for non-electric vehicles, whereas Canara Bank offers 8.55% and 8.65%. Indian Bank has rates of 8.70% for EVs and 8.75% for other vehicles. Union Bank follows closely and offers rates of 8.20% on electric vehicles and 8.30% on non-electric vehicles, respectively. The rates for PNB are at 8.35% for EVs and 8.40% for others, while the Central Bank maintains a flat 8.35% for both electric and non-electric vehicle loans.