Introduction to Electric Vehicle Loan Demand

Electric vehicle (EV) sales in India are soaring, boosting demand for vehicle loans. SBI offers tailored EV loans starting at 8.25% p.a., with Loanpao providing a seamless application process for eco-friendly vehicles like electric cars, bikes, and scooters.

Why Electric Vehicle Loans Are Booming

The surge in EV loan applications in 2025 is driven by:

  • Government Incentives: Subsidies under FAME III and state-level EV policies reduce costs.
  • Low Interest Rates: SBI EV loans start at 8.25% p.a., lower than traditional vehicle loans (8.65% p.a.).
  • Digital Platforms: Loanpao’s platform offers instant pre-approvals and real-time tracking.
  • Rising EV Adoption: Increased awareness and infrastructure (charging stations) drive EV sales.
  • Green Benefits: Special concessions like 0.10% p.a. rate reduction for EVs until March 31, 2026.

SBI Electric Vehicle Loan Schemes

SBI’s vehicle loan offerings for EVs in 2025 include:

Scheme Vehicle Type Loan Amount Tenure Interest Rate
SBI Green Car Loan Electric Cars Up to ₹48 lakh Up to 7 years 8.25% p.a. onwards
SBI e-Bike Loan Electric Two-Wheelers Up to ₹3 lakh Up to 4 years 8.35% p.a. onwards
SBI EV Commercial Loan Electric Commercial Vehicles Up to ₹1 crore Up to 7 years 8.50% p.a. onwards
SBI Green Mobility Loan Hybrid/Electric Vehicles Up to ₹50 lakh Up to 7 years 8.30% p.a. onwards

Note: Rates are linked to MCLR (9.05% as of March 2025) and vary based on credit score and vehicle type. Zero processing fees for Green Car Loans until March 31, 2026.

Eligibility for SBI EV Loans

Key eligibility criteria include:

  • Age: 21–65 years for salaried; 21–70 years for self-employed.
  • Income: Minimum monthly income of ₹25,000 for salaried; ₹5 lakh p.a. for self-employed.
  • Credit Score: Minimum CIBIL score of 650; higher scores may secure lower rates.
  • Employment: Minimum 1 year for salaried; 2 years for self-employed.
  • Vehicle Type: Electric or hybrid vehicles approved under FAME III or state EV policies.

Documents Required

Essential documents for EV loan applications:

  • Identity Proof: PAN, Aadhaar, Passport, Voter ID.
  • Address Proof: Aadhaar, Utility Bill, Rent Agreement.
  • Income Proof: Salary slips (last 3 months), ITRs (last 2 years), bank statements (last 6 months).
  • Vehicle Documents: Proforma invoice, vehicle registration details.
  • Employment Proof: Appointment letter, business registration for self-employed.

How to Apply with Loanpao

Loanpao simplifies the EV loan application process:

  1. Visit Loanpao’s platform and select vehicle loan options for EVs.
  2. Check eligibility using online tools tailored for electric vehicles.
  3. Upload KYC, income, and vehicle documents digitally.
  4. Receive instant pre-approval; final approval within 24–48 hours.

Tip: Use Loanpao’s EMI calculator to plan EV loan repayments and submit vehicle invoices early for faster processing.

Benefits of SBI EV Loans

Key advantages for borrowers include:

  • Low Rates: Starting at 8.25% p.a., with a 0.10% p.a. concession for EVs.
  • Quick Disbursal: Funds credited within 24–48 hours post-approval.
  • High Loan-to-Value: Up to 90% financing on EV on-road price.
  • Digital Tracking: Monitor applications and repayments via Loanpao’s platform.
  • Green Incentives: Zero processing fees for Green Car Loans until March 31, 2026.

Frequently Asked Questions

Rising EV sales, government subsidies (FAME III), lower interest rates (8.25% p.a.), and digital platforms like Loanpao drive demand.

SBI offers up to ₹48 lakh for electric cars and ₹1 crore for commercial EVs, subject to eligibility.

Prepayment penalties of up to 2% may apply for fixed-rate EV loans; confirm terms during application.

Yes, NRIs with valid documentation and income proof can apply via Loanpao’s platform.