SBI cuts rates for electric car loans

MUMBAI: In an attempt to incentivise the shift to green vehicles, SBI has cut rates on auto loans for purchase of electric cars. Borrowers will get a discount of 20 basis points on the interest they pay on their loan and get a longer repayment period under this scheme.

A statement issued by the bank said that this was in keeping with the government’s objective to ensure that 30% vehicles on the road run on electricity by 2030. SBI has already announced 100% migration towards electric vehicles by 2030 to reduce the institution’s carbon footprints. The bank also became the first major Indian organisation, along with Wipro, to join the Climate Group’s EV100 initiative for accelerating the rollout of electric vehicles worldwide.

SBI’s auto loans already have the longest repayment tenure of seven years. The Green Car Loan provides borrowers an even longer tenure of eight years. As an added incentive, the bank has waived all processing fees for the first six months of the loan. The reduced interest rate and longer tenure brings down the equated monthly instalment (EMI) to Rs 1,468 for 96 months as against Rs 1,622 for 84 months.

“These days, cars are perceived to play a vital role in polluting environment. We believe SBI Green Car Loan (Electric Vehicle) scheme would act as a change agent in the auto loan segment and encourage customers to switch to electric vehicles which can improve overall air quality and lower carbon emissions,” said P K Gupta, MD, SBI.