To further encourage citizens to shift to EVs, banks in India have also started taking initiatives by offering attractive loans. One such bank is the country’s largest public lender – the State Bank of India (SBI), which encourages people to apply for EVs through their Green Car Loan scheme for reducing their carbon footprint.
To increase the reach of the loan scheme, the bank in a tweet, earlier this week, said, “Charging India’s Green Future! SBI provides India’s first Green Car Loan to encourage people to reduce their carbon footprint and opt for electric vehicles.”
Charging India’s Green Future! SBI provides India’s first Green Car Loan to encourage people to reduce their carbon… t.co/LcnY5ouahf
— ANI (@ANI) May 19, 2022
The State Bank of India offers an interest rate from 7.25 per cent to 7.60 per cent for loan given for electric vehicles with effect from May 15, 2022. The repayment period starts with a minimum of 3 years and to a maximum of 8 years. The eligible age group is from 21 years to 67 years for sanctioning the loan.
SBI gives further concession of 20 basis points in the applicable rate of interest for normal car loans across the category of customers.
Its margin is up to 90% of the on-road price.
SBI’s EV loans are offered to 3 categories
1- The first category is for regular employees of Central Public Sector Enterprises (Maharana’s/Navratnas/ Miniratnas). Defence Salary package(DSP), Para Military salary package(PMSP) & Indian Coastal Guard Package(IGSP) Customers and Short Commissioned Officers of various Defence establishments.
The bank has an income criteria of a minimum of Rs 3 lakh for government employees. Against this income, the public lender offers a maximum loan of up to 48 times the net monthly income.
2- The second category is for professionals, self-employed, businessmen, proprietary/partnership firms who are income tax assesses. For this category, 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 as per ITR after adding back depreciation and repayment of all existing loans.
3- The third category is the person engaged in agricultural and allied activities. The income criteria under this section is set at a minimum of Rs 4 lakh net annual income. Maximum loan up to 3 times of net annual income.