EV loan from 7.25%. Check other details
To further encourage citizens to switch to electric vehicles, banks in India have also started to take initiatives by offering attractive loans. One of these banks is the country’s largest public lender – the State Bank of India (SBI), which encourages people to apply for electric vehicles through its Green Car Loan program to reduce their carbon footprint.
To increase the reach of the lending program, the bank said in a tweet earlier this week: “Charging India’s Green Future!
The State Bank of India is offering an interest rate of 7.25 percent to 7.60 percent on electric vehicle loans from May 15, 2022. The repayment period begins with a minimum of 3 years and a maximum of 8 years. Eligible age range is from 21 years old to 67 years old for sanctioning the loan.
SBI is making an additional 20 basis point concession on the applicable interest rate for regular auto loans across the customer category.
Its margin is up to 90% of the street price.
SBI’s EV loans are offered in 3 categories
1- The first category is for regular employees of Central Public Sector Enterprises (Maharana’s/Navratnas/Miniratnas). Defense Salary Package (DSP), Paramilitary Salary Package (PMSP) and Indian Coast Guard Salary Package (IGSP) clients and non-commissioned officers of various defense organizations.
The bank has an income criterion of at least Rs 3 lakh for government employees. Against this income, the public lender offers a maximum loan of up to 48 times net monthly income.
2- The second category is for freelancers, self-employed, business people, private companies/partnerships who are income tax assessors. For this category the income criteria are defined as net profit or gross taxable income of Rs 3 lakh per annum.
Under this category, the bank offers a maximum loan of 4 times net profit or gross taxable income according to ITR after adding depreciation and repayment of all existing loans.
3- The third category is the person engaged in agricultural and related activities. The income criterion in this section is set at a net annual income of at least Rs 4 lakh. Maximum loan up to 3 times net annual income.