Loan for e-car comes for a lower price

RATES 5-25 BPS LESS THAN THAT FOR ICE CARS

- SAIKAT NEOGI

TO PROMOTE GREEN mobility, banks are pricing their loans for four-wheeler electric vehicles (EV) at 5-25 basis points lower than their interest rates on internal combustion engine (ICE) car loans. Most lenders are waiving off processing fees, offering flexible payment options, including no prepayment charges on EV loans.

However, the interest rates of electric two-wheelers are higher than ICE two-wheelers due to concerns around battery life and resale value.

Banks are also offering special offers from time to time. For instance, marking the World Environment Day, Punjab National Bank announced a special push for green mobility by offering EV loans at interest rates starting from 8.30%, a 0.05% discount compared to traditional auto loans. The lender has also made the EV loan process more accessible through both digital channels through PNB One app.