New Delhi: Electric vehicles (EVs) are becoming increasingly popular in the country due to rising petrol and diesel prices and environmental concerns. Sales of electric cars have been growing continuously for several months. While companies are launching new models, banks are offering EV loans at rates as low as 0.50%.

Many offers in addition to cheap loans

Apart from cheap loans, major banks have also offered minimal or zero processing fees for EV buyers this Diwali. According to bank officials, interest rates for the purchase of electric cars are discounted by 0.10-0.50% compared to conventional vehicles.

While SBI loans for normal cars have an interest rate of 7.80% to 8.65%, the green car loan rate for e-cars ranges from 7.95% to 8.30%. The amount of the loan and the maturity period may vary from bank to bank.

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Get the benefit of tax exemption on the loan

As per Section 80EEB, if one has purchased an electric vehicle through a loan, then a deduction of up to Rs 1.50 lakh is available on the interest paid. This discount is available on e-vehicles purchased for personal and business purposes.

The benefit of the subsidy for the purchase of an electric car
A government subsidy of up to 1.5 million is also available for the purchase of an electric vehicle. The subsidy depends on the capacity of the vehicle’s battery.

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Apart from this central government facility, customers can also avail government subsidies for electric cars.

The number of new starts increased

Sumit Bali, Managing Director and Group Head, Retail Lending and Payments, Axis Bank, says companies are launching new models of electric cars. Now these cars are more economical. Banks also offer an attractive loan against the purchase of an EV.

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