New Delhi . Due to the ever-increasing prices of diesel-petrol and the government’s plan to promote electric vehicles (EVs), electric cars are becoming a favorite among people these days. Many people are now considering switching from their petrol or diesel cars to electric vehicles. The reason for this is that it costs less to run an electric vehicle than diesel-petrol vehicles.
The Income Tax Department has given the definition of electric vehicle. According to the department’s website, an “electric vehicle” is a vehicle typically driven by an electric motor whose traction energy is supplied by a specially installed traction battery in the vehicle. Many banks are offering loans for such electric vehicles at attractive rates. Let us have a look at the banks that are offering loans for the purchase of an electric car.
SBI Green Loan
SBI, the largest public sector bank, had launched the first green car loan in the country to encourage electric vehicle purchase. In this, the interest rate is 20 basic points less than the rate of the existing vehicle loan scheme. According to SBI’s website, 90 percent to 100 percent of the on-road price will be available on select models. Green car loan interest rates range from 7.05 per cent to 7.75%. Apart from this, Union Bank is also giving loans for electric vehicles at attractive interest rates. At the same time, Axis Bank is giving loans up to 85 percent of the road price of the electric vehicle to the salaried person and customers running private business.
Also read- Under the Pradhan Mantri Mudra Yojana, more than 34 crore beneficiaries got a loan of Rs 18.60 lakh crore
no car loan limit
You can take a loan of up to Rs 10 lakh to buy a new electric 2-wheeler, while there is no limit on the car. You can repay the loan for a new electric 4-wheeler in 84 months, while the range for a new electric 2-wheeler ranges from 36 months to 60 months.
what is the purpose
1. You can take an Electric Vehicle Loan for personal use.
2. Purchase of new electric 4-wheeler.
3. Purchase of new electric 2-wheeler.
4. This scheme will be applicable across the country.
1. Permanent Resident of India or Non-Resident Indian (NRI) can take the loan.
2. Minimum age of 18 years and maximum of 75 years
3. Persons who have regular source of income even after 60 years of age.
4. You can take the loan individually or jointly with other eligible persons. The maximum limit of 3 applicants has been fixed. That is, there can be a maximum of 2 co-applicants with the main applicant.
5. Co-applicants include spouse, father, mother, son, unmarried daughter.
can save tax
If you buy an electric vehicle, you can also save tax up to Rs 1.5 lakh. Those who buy an electric vehicle on loan will be eligible for a tax deduction of up to Rs 1.5 lakh on the interest paid for the loan under section 80EEB. According to the Income Tax Department, the loan for this should be approved between 1 April 2019 to 31 March 2023. Also, only individual taxpayers or businessmen will get its benefit.