With electric vehicles (EVs) gaining popularity in India, more buyers are now choosing EV car loans instead of paying the full amount upfront. One of the most important factors while choosing an EV loan is the EV car loan interest rate, as even a small difference in rate can significantly impact your total repayment.
In this article, we explain the EV car loan interest rate in India, compare private and nationalised banks, and help you understand what affects these rates and how you can get the lowest possible interest.
What Is an EV Car Loan?
An EV car loan is a vehicle loan offered specifically for purchasing electric cars. Many banks classify these loans under Green Car Loan or Electric Vehicle Loan schemes.
Compared to regular petrol or diesel car loans, EV car loan interest rates are often lower, as banks and the government promote eco-friendly transportation.
EV Car Loan Interest Rate in India (February 2025)
As of February 2025, EV car loan interest rates in India generally range between 8.20% and 10.00% per annum, depending on the bank, borrower profile, and loan tenure.
Below is a bank-wise overview.
EV Car Loan Interest Rate – Nationalised Banks
Public sector banks usually offer competitive and stable EV car loan interest rates, especially for salaried customers with good credit scores.
State Bank of India (SBI)
- Scheme: Green Car Loan (Electric Vehicles)
- EV car loan interest rate: 8.80% – 9.85% p.a.
- Lower rates for high CIBIL score borrowers
- Loan tenure up to 8 years
Punjab National Bank (PNB)
- EV car loan interest rate: 8.75% p.a. onwards
- Concessions for government and PSU employees
- Suitable for first-time EV buyers
Union Bank of India
- EV car loan interest rate: 8.70% p.a. onwards
- Competitive pricing for salaried individuals
- Flexible repayment options
Canara Bank
- Scheme: Green Vehicle / Canara Vehicle Loan
- EV car loan interest rate: 8.60% – 9.30% p.a. (based on risk grade)
- Lower rates for prime borrowers
- EVs treated as green assets
Bank of Baroda
- Scheme: Baroda Car Loan / Digital Car Loan
- EV car loan interest rate: 7.90% – 9.45% p.a.
- Fixed and floating rate options available
- Additional discounts under promotional schemes
EV Car Loan Interest Rate – Private Banks
Private banks focus on quick processing and digital approvals, though interest rates may be slightly higher for some profiles.
HDFC Bank
- EV car loan interest rate: 8.20% p.a. onwards
- Fast approvals and higher loan amounts
- Ideal for salaried professionals with strong credit history
ICICI Bank
- EV car loan interest rate: 9.10% p.a. onwards
- Flexible tenure and repayment plans
- Online application facility
Axis Bank
- EV car loan interest rate: 9.20% p.a. onwards
- EV loans generally aligned with regular car loan rates
- Suitable for premium EV models
Kotak Mahindra Bank
- EV car loan interest rate: 7.35% – 14.00% p.a.
- Rate varies widely based on borrower profile
- Competitive offers during festive seasons
Factors Affecting EV Car Loan Interest Rate
Several factors determine the EV car loan interest rate you receive:
- CIBIL / Credit Score – Higher score means lower interest
- Employment Type – Salaried borrowers usually get better rates
- Loan Tenure – Shorter tenure attracts lower interest
- Down Payment – Higher down payment can reduce rate
- Bank-Specific Green Schemes – Special EV or green finance benefits
How to Get the Lowest EV Car Loan Interest Rate?
To secure the best EV car loan interest rate, follow these tips:
- Maintain a CIBIL score above 750
- Compare nationalised and private banks
- Choose shorter loan tenure if affordable
- Ask banks about EV-specific concessions
- Negotiate if you are a government or PSU employee
EV Car Loan vs Regular Car Loan Interest Rate
In most cases, EV car loan interest rates are 0.10% to 0.30% lower than petrol or diesel car loan rates. This difference may look small, but over a 7- or 8-year tenure, it can save thousands of rupees in interest.
The EV car loan interest rate in India has become increasingly competitive due to the push for green mobility. Whether you choose a nationalised bank like SBI or a private lender like HDFC Bank, comparing interest rates carefully can help you save significantly.
Before applying, always check the latest EV car loan interest rate, eligibility criteria, and hidden charges to make an informed decision.
EV Car Loan Interest Rate (February 2026)- Frequently Asked Questions
What is the EV car loan interest rate in India in February 2026?
Are EV car loan interest rates lower than petrol or diesel car loans?
Which banks offer the lowest EV car loan interest rate?
Does my credit score affect the EV car loan interest rate?
What is the maximum tenure available for an EV car loan?
Can I get a fixed interest rate on an EV car loan?
How can I get the lowest EV car loan interest rate?
Rajil M P is a seasoned banking professional with over eight years of experience in the Indian banking sector. He has successfully completed the JAIIB and CAIIB examinations conducted by the Indian Institute of Banking & Finance (IIBF), reflecting his strong academic foundation and practical expertise in banking, finance, and risk management. He is the founder and editor of IndianBanker.com, a trusted platform focused on banking news, exam preparation, financial updates, and practical tools for banking aspirants, professionals, and informed readers. Drawing from real-world banking experience, Rajil simplifies complex topics such as interest rates, loans, deposits, RBI policies, and government schemes, making them easy to understand and apply.
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