Electric Car Loan Interest Rates are an important factor to consider before buying an electric vehicle in India. Several banks offer dedicated green car loan schemes with interest concessions, reduced processing fees or flexible repayment periods.
Canara Bank, Union Bank of India, Bank of Baroda, Punjab National Bank, State Bank of India, HDFC Bank and ICICI Bank are among the lenders offering EV financing options.
Some advertised starting rates are below 8% per year, but the final rate depends on the applicant’s credit profile, income, loan amount, vehicle model and the bank’s current terms.
Buyers should compare the total borrowing cost rather than choosing a loan based on the headline interest rate alone.
Seven Banks Offering Electric Car Loans
Here is an overview of seven banks with electric vehicle financing options.
The listed starting rates are indicative figures reported in October 2026 and may change; borrowers should confirm current offers directly with each lender before applying.
Canara Bank
Canara Bank offers its Canara Green Wheels scheme for eligible electric vehicle buyers. Reported starting interest rates are around 7.45% per year, with a concession compared with the bank’s regular vehicle loan rates.
The scheme has also offered a reduction in processing fees.
Union Bank of India
Union Bank of India offers the Union Green Miles scheme. Reported starting rates are around 7.50% per year, with interest concessions compared with standard car loans.
Eligible borrowers should check the current margin requirements, processing charges and repayment period.
Bank of Baroda
Bank of Baroda provides financing through its BOB Green Wheel scheme.
Reported interest rates start at around 7.60% per year, and the bank has offered concessions of up to 0.25 percentage points for eligible electric vehicle loans.
The actual rate depends on the applicant and the bank’s applicable terms.
Punjab National Bank
Punjab National Bank offers the PNB Green Car Loan for eligible electric vehicle purchases.
Reported starting interest rates are around 7.60% per year, with concessions available compared with regular car loan rates.
Applicants should confirm the applicable loan-to-value ratio and processing fee before proceeding.
State Bank of India
State Bank of India offers the SBI Green Car Loan, designed to finance eligible electric vehicles.
The scheme has offered an interest concession against applicable regular car loan rates, along with processing fee benefits for eligible borrowers.
Reported starting rates are around 8.60% per year, and repayment periods may extend up to eight years, subject to the bank’s conditions.
HDFC Bank
HDFC Bank provides an EV car loan option for eligible electric vehicle buyers. Reported starting interest rates are around 8.15% per year.
Loan availability, financing limits, processing fees and repayment conditions can vary depending on the customer’s profile and the vehicle being purchased.
ICICI Bank
ICICI Bank offers a Green Car Loan for eligible electric vehicle purchases.
Reported starting rates are around 8.35% per year, with the final offer depending on factors such as the applicant’s creditworthiness and the bank’s current lending terms.
Existing customers may also receive personalised offers, subject to eligibility.
How to Choose the Right Electric Car Loan
Before applying, buyers should compare the interest rate, processing fee, repayment tenure, down payment and total interest payable over the loan period.
A loan with a slightly lower rate may not necessarily be cheaper if it carries higher fees or less favourable repayment terms.
For example, a longer repayment period can reduce the monthly EMI but increase the total interest paid over time. A shorter tenure may reduce overall interest costs but require a larger monthly payment.
Applicants should also ask whether the advertised rate is available to all borrowers or only to customers meeting specific eligibility conditions.
Credit scores, income stability, employment status and the selected vehicle can influence the final offer.
Check the Total Cost Before Applying
Electric vehicle loans can sometimes offer lower interest rates than conventional car loans, but the difference varies by lender and applicant.
Special concessions may also be time-limited or linked to particular vehicle models and dealership arrangements.
Customers should obtain a written loan quotation from more than one bank and compare the annual interest rate, processing fees and total repayment amount.
They should also check whether the bank permits early repayment without additional charges and whether any special offer applies throughout the loan tenure.
Comparing these details can help buyers make a more informed decision when financing an electric car.
Since rates and promotional offers can change, the bank’s current terms should always take priority over previously advertised figures.
