Synopsis: With electric scooters and bikes becoming more affordable in India, several banks are offering special EV two-wheeler loan schemes with lower interest rates, flexible EMIs, and higher financing limits.
India’s central government has been promoting EV adoption through many policies. With current geo-political tensions, and rising fuel costs, EVs are considered to be better alternatives. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme aims to support approx. 5.6 lakh EVs, by Ministry of Heavy Industries.
5 Banks that Provide Low Interest rates on EV 2-Wheelers
- Bank of India- Bank of India offers financing of electric vehicles under Star Vehicle Loan scheme. It gives a 50% concession on the applicable processing fee for all electric vehicles purchases. The interest rate for loan starts from ~7.60% p.a.
- Punjab National Bank- Punjab National Bank gives EV loans for two wheelers under PNB Saarthi and PNB Power Ride, and special EV 4-wheeler loan under Green Car Loan scheme. The loans start from ~8.30% to ~10.00% p.a. for 2-wheeler EVs.
- Union Bank of India- Union Bank of India has a dedicated scheme as Union Green Miles for EV loan. The Union Miles are a separate scheme for just non-electric vehicles. The loans for 2-wheelers start from ~10.90% p.a. (Specific EV 2-wheeler interest rates are not publicly listed, please visit the branch for more accurate information.)
- IDFC First Bank- IDFC First Bank provides 100% road funding on selected models and the interest rate for the loan starts from ~8.50% to ~18.99%p.a. for two-wheelers.
- State Bank of India- The SBI Easy Ride scheme provides loan amount up to ~₹3 lakh, and the interest rates start from ~11.70% to ~15.70% p.a.
Note: All the data provided above are only for indicative purposes, please check at the branch for more accurate information.
Benefits of Buying EV 2-Wheelers
- Electric vehicles have lower running costs as compared to petrol or diesel vehicles.
- Electric bikes or scooter with fewer moving parts and absence of usage of oil have lower maintenance cost than the petrol vehicles
- EVs with lower running costs and lower maintenance cost, even after considering the battery replacement after 3-5 years, provide long-term saving than the fuel-consumption 2-wheeler vehicles.
- EV loan taken for personal use gives tax benefits and a claim deduction of upto ₹1.5 lakh per year on interest paid under Section 80EEB of Income Tax Act under old tax regime.
- Some states offer full or partial road tax exemptions and registration fee waivers on EV 2-wheelers.
Before choosing a loan, compare not just the interest rate but also processing fees, down payment requirements, foreclosure charges, and whether the bank uses flat or reducing balance interest calculation.
Written by Jahnavi
