This public sector bank offers loans for electric vehicles starting at 7.25%. Know the features here
India is encouraging citizens to opt for electric vehicles. The government aims to become a 100% electric vehicle nation by 2030, and many key initiatives have been announced as a result. Banks have also taken steps to motivate the purchase of electric vehicles by offering attractive loans. The largest public sector bank, State Bank of India (SBI) is encouraging people to apply for electric vehicles through their green car loan scheme to reduce their carbon footprint.
Earlier this week, SBI via its Twitter account said, “Charging India’s Green Future! SBI provides India’s first green car loan to encourage people to reduce their carbon footprint and switch to electric vehicles.
Under the Green Car Loan program for electric vehicles, SBI is offering an interest rate of 7.25% to 7.60% starting May 15, 2022. The repayment period starts with a minimum of 3 years and a maximum of 8 years. 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.
Under this program, SBI offers electric vehicle loans in three categories.
The first category is for 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.
For government employees, SBI maintains income criteria of a minimum of ₹3,000,000. Against this income, SBI offers a maximum loan of up to 48 times net monthly income.
The second category is for professionals, self-employed, businessmen, business owners/partnerships who are subject to income tax. For this category, the income criteria are defined as the net profit or taxable gross income of ₹3 lakh per year.
For the second category, SBI grants a maximum loan of 4 times net profit or gross taxable income according to ITR after adding amortization and repayment of all existing loans.
The third category is the person engaged in agricultural and related activities. The income criteria are set at a minimum of ₹4 lakh annual net income. Maximum loan up to 3 times annual net income.