India encourages citizens to opt for electric vehicles. The government aims to become a 100% electric vehicle nation by 2030, and has announced several major initiatives accordingly. Banks have also taken measures to motivate them to buy electric vehicles by offering attractive loans. The largest public sector bank, State Bank of India (SBI) encourages people to apply for an EV through its Green Car Loan scheme to reduce their carbon footprint.
Earlier this week, SBI through its Twitter account said, “Charging India’s Green Future! SBI offers India’s first Green. car loan To encourage people to reduce their carbon footprint and opt for electric vehicles.”
In the Green Car Loan scheme for EVs, SBI offers an interest rate of 7.25% to 7.60% with effect from May 15, 2022. The repayment period starts from minimum 3 years and maximum 8 years. The eligible age group for getting the loan sanctioned is from 21 years to 67 years.
SBI offers a further concession of 20 basis points in the interest rate applicable for general car loans to the category of customers.
Its margin is up to 90% of the on-road price.
Under this scheme, SBI provides electric vehicle loans to three categories.
The first category is for regular employees of Central Public Sector Enterprises (Maharana/Navratna/Miniratna). Defense Salary Package (DSP), Para Military Pay Package (PMSP) and Indian Coastal Guard Package (IGSP) customers and Short Commissioned Officers of various Defense Establishments.
For government employees, SBI keeps minimum income criteria 3 lakhs. Against this income, SBI offers a maximum loan of up to 48 times the net monthly income.
The second category is for professionals, self-employed, businessmen, proprietorship/partnership firms who are income tax assessees. For this category, the income criterion is defined as net profit or gross taxable income 3 lakh per annum.
For the second category, SBI gives loans up to a maximum of 4 times the net profit or gross taxable income as per ITR by adding back the depreciation and repayment of all existing loans.
The third category belongs to the person engaged in agriculture and allied activities. Income norms are set at a minimum 4 lakh net annual income. Maximum loan up to 3 times of net annual income.