To further encourage citizens to switch to electric vehicles, Indian banks 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 electric vehicles through their green car loan scheme to reduce their carbon footprint.
To increase the reach of the loan scheme, the bank said in a tweet, earlier this week, “Charging India’s Green Future! SBI is providing India’s first green car loan to encourage people to reduce their carbon footprint and to opt for electric vehicles.
The State Bank of India is offering an interest rate of 7.25% to 7.60% for loans granted for electric vehicles from 15th May 2022. The repayment period starts with a minimum of 3 years and a maximum 8 years old. The eligible age group is 21 years old to 67 years old to sanction the loan.
SBI grants an additional concession of 20 basis points on the interest rate applicable to normal auto loans for the entire class of customers.
Its margin is up to 90% of the road price.
SBI EV loans are offered in 3 categories
1- The first category concerns regular employees of Central Public Sector Enterprises (Maharana’s/Navratnas/Miniratnas). Defense Salary Package (DSP), Para Military Salary Package (PMSP) and Indian Coast Guard Package (IGSP) Clients and NCOs from various defense establishments.
The bank has an income test of a minimum of Rs 3 lakh for government employees. In return for this income, the public lender offers a maximum loan of up to 48 times the net monthly income.
2- The second category concerns professionals, self-employed workers, businessmen, business owners/partnerships who are subject to income tax. For this category, the income criteria are defined as net profit or gross taxable income of Rs 3 lakh per annum.
In this category, the bank offers a maximum loan of 4 times the net profit or gross taxable income according to the ITR after adding the amortization and repayment of all existing loans.
3- The third category is the person carrying out agricultural and related activities. The income criteria under this section is set at a minimum annual net income of Rs 4 lakh. Maximum loan up to 3 times annual net income.