Vehicle Loans · Cluster · Reviewed 2026-04-25
EV Loan 2026: Green Finance Discounts at PSU Banks
EV loans get a 25-50 bps discount at SBI, BoB, Canara, and BoI under the green-finance push. This cluster compares the EV-specific rates, eligible models, and the FAME-II scheme integration with the EMI flow.
Rate snapshot
| Lender | Min % | Max % |
|---|---|---|
| State Bank of India | 8.85 | 9.95 |
| Bank of India | 8.85 | 10.40 |
| HDFC Bank | 9.10 | 10.45 |
| ICICI Bank | 9.10 | 10.50 |
| Kotak Mahindra Bank | 9.20 | 10.80 |
Step-by-step
- Compare lender rates side-by-side. Use the rate board to shortlist 3-4 lenders matching your profile and tenure preference.
- Run an eligibility check. Match income, CIBIL, vintage, and existing-EMI ratios against each lender's published cut-offs.
- Collect KYC + income documents. PAN, Aadhaar, salary slips (3 months) or ITR (2 years for self-employed), bank statements (6 months).
- Submit application + soft-pull. Most digital lenders use soft credit pull at the offer stage so your CIBIL is unaffected.
- Sanction letter + acceptance. Read the sanction letter carefully — focus on processing fee, foreclosure terms, and reset clauses.
- Disbursal. Funds typically credited within 24-72 hours of acceptance for unsecured products.
FAQ
Which EV models qualify for the discount?
Most factory-fitted EVs from Tata, Mahindra, MG, Hyundai, BYD, Hero Electric, Ola, Ather. Check the bank's approved-model list.
Is the FAME-II subsidy applied at sanction?
FAME-II subsidy is applied by the dealer on ex-showroom price; loan is on the post-subsidy on-road price.
Are home-charger costs financeable?
Yes at SBI Green Car Loan — bundle the charger into the loan amount.
What about Tesla / imported EVs?
Eligible at private banks (HDFC, ICICI, Kotak) but at standard car-loan rates; no green discount.
Is the LTV higher for EVs?
Generally same as regular new car (90%); some PSU banks offer 95% for select models under green push.
Are there state-level interest subsidies?
Yes — Delhi, Maharashtra, Gujarat, Tamil Nadu offer registration / stamp-duty waivers; not direct interest subsidy on the loan.
Can a fleet operator get an EV loan?
Yes — under commercial vehicle finance with 4-7 year tenure; rates 25-100 bps higher than retail.
Do EVs depreciate faster (relevant for resale)?
Battery-degradation cycle drives depreciation. Most banks apply standard depreciation curves; resale value risk is on the borrower.
Related
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