Planning to buy an electric car, but concerned about whether you can afford it or not? Today, you have many financing options or EMI options to buy your dream EV car, and you can reduce your financial burden. You can find everything about electric car financing here.
Electric Car EMI and Financing Options in India
The electric vehicle market is accelerating in India due to environmental concerns and its benefits, but the cost is a major concern. The electric cars are more expensive than the traditional petrol/diesel cars due to the higher cost of the battery pack.
Though electric cars can be expensive, their adoption is accelerating. We have many financing options, and if you use them smartly, you can buy an electric car without taking a lot of financial burden. Here are some financing options for the purchase of electric cars in India:
- Manufacture financing:
- The electric car partners with banks or NBFCs and offers pre-approved loans and EMI plans to their customers through their dealerships, such as Tata Motors Finance, Mahindra Finance, and others.
- The manufacturer’s finance offers customer loans, EMI, and all financing options in one place.
- Bank loans and EMIs:
- Many public or private sector banks offer electric car buy loans or EMI plans to encourage EV adoption.
- The electric car loans are offered at different interest rates ranging from 8% to 9.25% in 2025.
- Government Initiatives:
- The government of India encourages the adoption of electric vehicles through tax benefits, subsidies, and other schemes that help citizens buy electric cars.
EMI Calculation for Electric Cars in India
If you are thinking of buying an electric car in India, you can pay some upfront cost and pay the rest through monthly EMI. This approach will not let you file the financial burden at one time, but you can plan systematically.
You can find the EMI plan for the purchase of electric cars at the dealership or through your bank, based on your credit score and the bank’s offer. If you are thinking about the EMI calculation for your electric car, the following factors need to be considered:
- Car Price: The on-road price of the electric car will affect the EMI calculation and the monthly payment.
- Down payment: Your down payment when you buy your electric car will impact your EMI, as you will pay the remaining cost through the EMI.
- Tenure: The duration of your EMI will determine your monthly payment; a longer tenure results in a lower EMI. But with a longer tenure, the interest rate can increase, and you may pay more than the car price.
- Interest Rate: The EMI interest rate is connected with the loan interest rate, but it can be different as it will depend on the tenure, manufacturer, car model, and other factors.
Top Electric Car loans in India
The potential buyers of the electric car can find help with finances through the private and public sector bank loans; however, we have many options in the Indian banking sector, so here we have listed the best electric car loan options below:
- SBI Green Car Loan:
| Loan Sanction Age Criteria | 21 to 70 years |
| Repayment period | Minimum 3 yearsMaximum 8 years |
| Loan to Value | Up to 100% on the road price |
| Interest Rates | 8.85% to 9.80% |
| Processing Fees | No processing fee for some models |
| Tenure | Up to 7 years |
- HDFC Electric Vehicle Loans:
| Applicant Age | 21 years to 60 years |
| Employment Legacy | Minimum two years and have at least earned 3 LPA |
| Processing Fee | Up to 1% of the loan amount is subject to at least ₹3,500 or a maximum of ₹9,000 |
| Tenure | Flexible 12 to 96 months |
| Interest Rates | Up to 9.20% per annum |
| LTV | Up to 100% on the road price |
- ICICI Bank Electric Vehicle loan:
| Applicant Age | 21 years to 65 years |
| Employment Legacy | Open to self-employed and salaried employees |
| Processing Fee | Up to 1% of the loan amount is subject to at least ₹3,500 or a maximum of ₹10,000 |
| Tenure | Flexible 12 to 84months |
| Interest Rates | Competitive interest rates starting from 9.10% |
| LTV | Up to 100% on the road price |
- Union Green Miles:
| Applicant Age | 18 years to 75 years |
| Employment Legacy | Open to self-employed and salaried employees |
| Processing Fee | NIL |
| Tenure | Flexible 12 to 84 months |
| Interest Rates | Competitive interest rates starting from 7.80% to 9.60% |
| LTV | Up to 100% on the road price |
Government Initiative for Electric Car
The Indian government has also taken steps to encourage people to buy electric cars and embrace this change. Here we have listed a few government initiatives that you can check out when you plan your finances for the electric vehicle:
- EV Mitra Scheme:
- The scheme supports businesses or individuals in setting up EV charging stations, facilitating the faster adoption of electric cars, which can reduce the financial burden of charging stations for electric car owners.
- The government offers subsidies for the initial investment of the chagrin stations.
- Lower GST rates:
- The Indian government has put electric vehicles in the 5% slab of GST, whereas batteries and charging are in the 18% slab.
The Electric car market is growing well in the Indian market. People are buying EVs at an increasing rate with various easier financing options, so if you are planning, do check all your options and choose the best that suits your financial needs.
