Banks in India have begun giving attractive loans to encourage citizens to switch to electric vehicles. One such bank is the State Bank of India (SBI), the country's largest state lender, which encourages consumers to apply for EVs through their Green Car Loan scheme in order to reduce their carbon impact.
With India's encouragement to cut carbon emissions, an increasing number of individuals are opting for electric automobiles. This is consistent with the government's goal of achieving a 100% electric vehicle country by 2030.
Banks in India have begun to take steps to encourage citizens to switch to electric vehicles by giving attractive loans. One such bank is the State Bank of India (SBI), the country's largest state lender, which encourages consumers to apply for EVs through their Green Car Loan scheme in order to reduce their carbon impact.
SBI's Green Car Loan Program
With effect from May 15, 2022, the State Bank of India offers an interest rate range of 7.25 percent to 7.60 percent for loans for electric vehicles. The repayment period can be as short as three years and as long as eight years. For loan approval, borrowers must be between the ages of 21 and 67.
SBI further reduces the relevant rate of interest by 20 basis points for all clients who take out standard car loans.
Its profit margin can reach 90% of the on-road price.
SBI offers three types of electric vehicle loans.
1- Regular personnel of Central Public Sector Enterprises (Maharanas/Navratnas/Miniratnas) fall into the first group. Customers and Short Commissioned Officers of various Defence organisations receive the Defence Salary Package (DSP), Para Military Salary Package (PMSP), and Indian Coastal Guard Package (IGSP).
For government employees, the bank has a minimum income requirement of Rs 3 lakh. The public lender will lend up to 48 times your net monthly income against this revenue.
2- The second group is for income tax assesses who are professionals, self-employed, businesspeople, proprietary/partnership firms. The income criteria for this group include a net profit or gross taxable income of Rs 3 lakh per year.
After depreciation and repayment of all existing loans, the bank offers a maximum loan of 4 times net profit or gross taxable income as per ITR in this category.
The person involved in agricultural and related activities falls into the third category. The minimum income requirement for this section is Rs 4 lakh net annual income. The maximum loan amount is three times your net annual income.
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