Introduction: Why EV Loans Are Gaining Popularity in India
Electric vehicles (EVs) are no longer a niche product. As fuel prices rise and climate concerns grow, EV adoption is accelerating across India. But while interest in EVs has surged, their upfront cost remains a key barrier for many buyers.
That’s where affordable EV loan options in India come into play. Whether you’re buying an electric car or a two-wheeler, several banks and financial institutions are now offering low-interest EV loans tailored for green mobility.
In this guide, we’ll explore the most affordable EV loan options, review the lowest EV car loan interest rate available, cover financing for electric two-wheelers, and compare leading EV financing companies in India.
Table of Contents
Why You Should Consider an EV Loan
Electric vehicles may have lower running costs, but their initial purchase price is often higher than petrol or diesel alternatives. Financing your EV through a dedicated green loan can make ownership much more accessible.
Here’s why opting for an EV loan makes sense:
- Lower EMIs with subsidized interest rates
- Special schemes under government-supported green finance initiatives
- Tax savings under Section 80EEB of the Income Tax Act
- Faster approval for pre-approved customers
- Encouragement to go green without upfront financial strain
Overview of EV Loan Trends in India (2025)
India’s EV finance ecosystem has matured rapidly. Several private and public banks have introduced green vehicle loan products, while NBFCs and fintech startups have entered the market to serve rural and semi-urban buyers.
Key trends:
- EV-specific loans now available from major banks like SBI, HDFC, Axis, and ICICI
- NBFCs like RevFin, Mufin Green Finance, and Ecofy offer instant loans for 2-wheeler EVs
- State-specific subsidies complement central government benefits
- Digital EV financing is becoming popular with quick disbursals and minimal paperwork
Lowest EV Car Loan Interest Rate in India (2025)
When it comes to buying an electric car, choosing the right loan can save you thousands over the loan tenure. Let’s look at some of the lowest EV car loan interest rates in India currently offered:
| Bank / Lender | Interest Rate (p.a.) | Max Tenure | Processing Fee |
| SBI Green Car Loan | 8.65% onwards | 7 years | Nil for selected EVs |
| HDFC Bank EV Loan | 9.25% onwards | 7 years | 0.5% of loan amount |
| Axis Bank | 9.00% onwards | 5–7 years | Rs 10,000 (approx.) |
| ICICI Bank | 9.50% onwards | 7 years | 1% or minimum Rs 5,000 |
| Tata Capital | 9.75% onwards | 5–7 years | Rs 2,999 onwards |
| Hero FinCorp | 10.25% onwards | 5 years | Custom for EVs |
Please note that EV car loan interest rate in India can vary depending on your credit score, vehicle model, location, and loan tenure.
2-Wheeler Electric Vehicle Loan: An Emerging Market
Electric scooters and bikes are booming in India, especially in Tier 2 and Tier 3 cities. But despite their lower cost, many customers still look for financing options due to tight monthly budgets.
Leading lenders are now offering 2-wheeler electric vehicle loans at competitive rates with quick approvals.
Leading Options for 2-Wheeler EV Loans: Affordable EV Loan Options in India
| Lender | Interest Rate (p.a.) | Loan Amount | Eligibility Notes |
| Ecofy | 9.75% onwards | Up to Rs 1.5 lakh | Focus on urban buyers |
| RevFin | 10–15% (customized) | Rs 30K – Rs 1 lakh | Targeted at low-income groups |
| Mufin Green Finance | 10–16% depending on plan | Varies | Special plans for Ola, Hero, Ather |
| L&T Finance | 9.50% onwards | Up to Rs 2 lakh | Quick digital onboarding |
| Bajaj Auto Finance | 9.99% onwards | Based on model | Tie-ups with EV brands |
Most of these companies now offer paperless applications, flexible tenure (up to 3 years), and doorstep verification.
If you’re searching for 2-wheeler electric vehicle loan interest rate comparisons, RevFin and Ecofy currently lead the list for lowest effective rates, especially for salaried professionals and students.
Best Affordable EV Loan Options in India
When we talk about the best affordable EV loan options in India, it’s not just about the lowest interest rate. A good loan should offer:
- Reasonable EMIs
- Low or zero processing charges
- Flexible repayment tenure
- Special benefits like top-up loans or prepayment without penalty
Top Picks Based on Overall Value: Affordable EV Loan Options in India
1. SBI Green Car Loan
Ideal for salaried individuals buying EVs like Tata Nexon EV, Tiago EV, or MG Comet. Interest rates are among the lowest and there’s no processing fee for certain models.
2. HDFC Bank EV Loan
Easy online application and wide dealer network. Good for salaried and self-employed buyers.
3. Ecofy Two-Wheeler Loan
A great option for college students and young professionals with limited credit history.
4. RevFin
Focuses on affordable electric two-wheeler loans in semi-urban areas. Loan approval in under 10 minutes with flexible documentation.
5. Tata Capital Green Loan
Backed by the Tata Group, this loan is ideal for Tata EV buyers. Online approvals and EMI calculators available.
Key Factors to Consider Before Choosing an EV Loan
Before you finalize your loan, consider these essential factors:
1. Total Cost of Ownership (TCO)
Look at more than just the EMI. Factor in insurance, maintenance, and resale value.
2. Subsidies and Discounts
Use central and state government incentives to reduce the on-road price before applying for a loan.
3. Down Payment Requirements
Some lenders require up to 20–25% of the vehicle cost upfront. Compare this with others offering 100% on-road funding.
4. Credit Score Impact
A score above 700 often qualifies you for the lowest EV loan interest rate in India. Check your score before applying.
5. Foreclosure and Prepayment Terms
Ensure there are no heavy penalties if you want to pay off your loan early.
Government Support for EV Financing: Affordable EV Loan Options in India
The Government of India is actively supporting EV adoption through policies like:
- FAME II Subsidy: Offers discounts on electric scooters and cars
- Section 80EEB: Offers up to Rs 1.5 lakh tax deduction on interest paid on EV loans
- State-specific Incentives: Delhi, Maharashtra, Gujarat, and Karnataka offer extra rebates or free registration
These initiatives indirectly make EV loans more affordable by lowering your overall cost burden.
Future of EV Financing in India
The Indian EV market is expected to grow at a CAGR of 44% over the next five years. With this, EV financing will also evolve.
Predictions include:
- Dedicated EV-only loan products by more NBFCs
- Wider acceptance of battery swapping finance models
- Fintech-driven instant loan apps with AI-based credit assessments
- Partnerships between EV manufacturers and banks to offer bundled deals
Conclusion: Affordable EV Loan Options in India
Buying an electric vehicle is not just an environmental decision, it’s also a financial commitment. Thankfully, with the growing number of affordable EV loan options in India, owning an EV is becoming more realistic for the average buyer.
Whether you’re eyeing an electric two-wheeler or a new-gen electric car, there are now tailored loans available with flexible EMIs and competitive rates. Use this guide to compare the EV car loan interest rate in India, check 2-wheeler loan options, and pick the financing solution that suits your budget and lifestyle.
FAQs: Affordable EV Loan Options in India
1. What is the lowest EV car loan interest rate in India?
As of 2025, SBI offers one of the lowest EV car loan interest rates starting at 8.65% per annum.
2. Can I get a loan for a 2-wheeler electric vehicle in India?
Yes, several NBFCs like RevFin, Ecofy, and Bajaj Auto Finance offer loans for electric scooters and bikes.
3. Are there tax benefits for EV loans in India?
Yes, under Section 80EEB, you can claim up to Rs 1.5 lakh deduction on interest paid for EV loans.
4. Which banks offer the best affordable EV loan options in India?
Top lenders include SBI, HDFC Bank, Tata Capital, Axis Bank, and ICICI Bank, offering competitive rates and flexible terms.
5. Is credit score important to get an EV loan?
Yes, a higher credit score often helps secure lower interest rates and faster approvals.
