The electric vehicle market has grown rapidly in 2023. 1.5 million EVs were sold last year, which is a year-on-year growth of around 47% over 2022. Out of the total automobiles sold, electric vehicles accounted for 6.35% of the sold units by the end of 2023. What’s the reason for this massive growth? Subsidies, tax sops, and incentives given by the government to both consumers and EV manufacturers are playing key roles in expanding the EV sales and EV financing market in India. Now, let’s explore the EV financing companies in India.
As per NITI Aayog and RMI report India’s EV Financing Industry Projected to be Worth Rs 3.7 Lakh Crore in 2030 & the cumulative Capital Cost of India’s EV Transition is expected to be Rs 19.7 lakh crore by 2030. pic.twitter.com/ztnqWUw3YW
— Avinash Srivastava 🇮🇳 (@go4avinash) March 10, 2021
Top 4 EV Financing Companies in India
Currently, EV financing is mainly dominated by four companies in India. They are SBI, PNB, HDFC, and Bank of Maharashtra.
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SBI Electric Vehicle Loan
The EV car loan given by SBI is called the “SBI Green Car Loan.” Its rates vary from 8.75% to 9.45%. In comparison to the automobile lending programs of the State Bank of India, you can avail of the SBI Green Car Loan at a 0.2% lower rate. On specified models, the margin on on-road price will vary from 90-100%. The rate of interest for an individual depends upon his/her credit score. The best part is that you can prepay your loan without any penalty.
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PNB Electric Vehicle Loan
Punjab National Bank’s (PNB) EV car loan is known as the “PNB Green Car Loan.” While the floating rate is 8.75% p.a., the fixed rate is 9.75% p.a. The best part is that this EV loan from PNB finances the entire ex-showroom price. For purchasing a new electric car, you can get a reimbursement of 25% on its on-road price. You wouldn’t have to face paperwork hassle for this EV financing. To avail this finance, no processing cost is there.
Also Read: Best Electric Cars In India: Top Picks For 2024-Check Now!
You can avail of 100% financing from an HDFC EV car loan. Whether you are a salaried person (21-60 years) or self-employed (21-65 years), both can receive this EV loan to buy electric cars. In fact, EVs with the help of HDFC EC car loans can be availed by trusts, HUFs, public companies, private companies, and partnership firms. Depending on the loan amount or credit score, you can get an HDFC electric car loan from 9.2% onwards.
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Bank of Maharashtra EV Loan
Bank of Maharashtra offers a lucrative electric green car loan scheme, which is sweetened by the Maha Super Car loan scheme. Depending on the loan amount, tenure, and credit score, this loan charges a yearly interest rate of 8.8-13%. HDFC offers a 0.25% concession to EV financing borrowers due to the Maha Super Car loan scheme. You’ll not have to pay any processing fee or any charges related to documentation, part-payment, pre-closure, or pre-payment.
Also Read: Government Subsidy On Electric Vehicles In 2024: Check Now!
Final Words
To avail of EV financing in India, you’ll need basic documentation such as address proof, identity, and other KYC documents. Depending on an individual’s profile, additional documents may be asked for by the financing bank or company such as income or salary-related papers.