SBI Launches India’s First ‘Green Car Loan’ At Lower Interest Rates And Zero Processing FeeA electric car at a charging station. (Pixabay/MikesPhotos)

In a first India’s largest bank State Bank of India (SBI) on Monday (22 April) launched ‘Green Car Loan’ to encourage customers to buy electric vehicles (EVs) in the country, reports CNBC.

To boost the struggling EV market in the country, the interest rates on the loan will be 20 basis points (0.2 per cent) lower than SBI’s existing auto loans. Thus, the equated monthly instalment (EMI) per Rs 1 lakh will be lower at Rs 1,468 for 96 months (8 years) against Rs 1,622 for 84 months, based on the maximum tenor of existing schemes.

“(The loan) is a strategic inclusion to the bank’s auto loan segment offered with zero processing fee for the first six months of the launch,” said SBI in a statement.

“We are pleased to introduce the concept of ‘Green Car Loan’. These days, cars are perceived to play a vital role in polluting environment," said PK Gupta, managing director (R&DB) SBI.

“We believe SBI Green Car Loan (Electric Vehicle) scheme would act as a change agent in auto loan segment and encourage customers to switch to electric vehicles which can improve overall air quality and lower carbon emissions,” he added.

Losing Steam?

In a new report published in October 2018, electric car sales in India plunged by 40 per cent in FY18 when compared to FY17. A total of only 1,200 units were sold in the year.

Also Read: Electric Vehicle Owners To Get Priority Access To Electricity At Home; No License Needed To Set Up Charging Stations

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