These 4 banks offer special interest rates on electric vehicle (EV) loans

SBI offers further concession of 25 BPs in applicable rate of interest for normal car loan across the category of customers. According to the SBI website, “Festive Dhamaka: Zero Processing Fee till 31st January 2024. Avail now!”

SBI Green Car Loan (For Electric Cars) provides rates ranging from 8.75% to 9.45%. The new system will provide loans at interest rates that are up to 20 basis points cheaper than the present auto lending program. According to the SBI website, the margin will range from 90% to 100% of the on-road pricing for specified models. Interest rate varies depending on credit score (9.15%- 12.25%). No prepayment penalty if the loan adjusted from its own verifiable source.

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For new automobiles, the bank gives 10% of the on-road price or 0% of the ex-showroom price, implying that the ex-showroom price is completely financed. It provides a 25% reimbursement on the on-road price for the purchase of a new electric car. There is no processing cost or paperwork.

The bank charges RLLR+BSP-0.50%, or 8.75% per year, for a floating rate auto loan, and 9.75% for a fixed ROI. Take note that RLLR (now 9.00%) + BSP (currently 0.25%).

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Bank of Maharashtra does not charge processing fee and documentation charges on electric green car loan scheme. The bank offers 0.25% concession in ROI from existing Maha Super Car loan scheme. (Subject to min floor rate RLLR-0.60%). Maha Car loan interest rates varies from 8.8% to 13% depending on the CIBIL score. They will not charge for pre-payment, pre-closure, part payment charges.

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According to the HDFC Bank, “Tax benefits are one particular advantage proving to be a great incentive to buy an EV. In 2019, the government announced tax benefits under the new Section 80EEB. The section is applicable to individual taxpayers and offers a tax deduction of up to ? 1.5 lakhs on the interest component of a car loan taken to buy an EV.”

An EV Loan can be used to acquire an electric car or bike for personal or business usage. However, the car must be registered in the name of the owner or business. You can claim a tax deduction for the whole loan term (until it is entirely repaid). Section 80EEB covers both two- and four-wheelers.

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HDFC Bank’s new EV Car Loan can be availed by the following:
1. Salaried individuals in the age group of 21 to 60 years (at the end of the tenure)
2. Self-employed individuals in the age group of 21 to 65 years (at the end of the tenure)
3. Partnership firms
4. Public and Private Ltd. companies
5. HUFs and Trusts

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The basic documentation for applying for an EV Loan includes KYC, such as identity and address proof. Other documents, such as banking and salary or income papers, are also required when getting an electric car loan, depending on the applicant’s profile.

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