Electric Vehicle Loan — Interest Rates, Subsidy & Best Banks 2026
CardKhoj Editorial Team 12 min read4 March 2026
Financial Disclaimer
Disclaimer: This information is for educational purposes only. Always consult a certified financial advisor before making any financial decision.
Finance Your EV at Lower Interest Rates
Banks offer 0.5-1% lower interest rates on EV loans compared to petrol/diesel cars, plus you get Section 80EEB tax deduction of ₹1.5 Lakh on interest paid. Combined with state subsidies and FAME-II, an EV becomes significantly cheaper to own.
EV Loan Comparison
| Bank | Rate | Max Financing | Tenure | Special Benefits |
|---|---|---|---|---|
| SBI Green Car Loan | 8.25% - 9.50% | 90% on-road | 8 years | Lowest rate for EVs |
| HDFC Bank | 8.50% - 10.00% | 85% on-road | 7 years | Quick approval |
| Axis Bank | 8.75% - 10.50% | 90% ex-showroom | 7 years | Zero foreclosure fee |
| Bank of Baroda | 8.15% - 9.45% | 90% on-road | 8 years | ₹3K processing fee |
Total Savings on an EV
✅ ₹1.5L tax deduction (80EEB). ✅ FAME-II subsidy up to ₹1.5L on 2-wheelers. ✅ State subsidies (₹10K-₹1.5L depending on state). ✅ Running cost ₹1/km vs ₹6-8/km for petrol. ✅ Lower insurance and zero road tax in many states.