SBI offers extended term and lower rates for Green Car Loan
24 Apr 2019
State Bank of India on Monday announced the country’s first ‘Green Car Loan’ (Electric Vehicle) to encourage customers to buy electric vehicles.
The new scheme will offer loan at 20 basis points lesser than the interest rate on the existing car loan schemes. The EMI per Rs1 lakh will also be lower at Rs1,468 for 96 months against Rs1,622 for 84 months, based on the maximum tenor, in line with the existing scheme.
“SBI Green Car Loan (Electric Vehicle) scheme, which comes with the longest repayment period of up to eight years, is a strategic inclusion to the bank’s auto loan segment offered with zero processing fees for the first six months of the launch,” the lender said in a statement on Monday.
EVM sales in India constitute a mere 1,000 units a year against annual (FY19) car sales of 3.6 million, according to industry data.
Many in the industry blame lack of policy clarity for the poor-show by this segment as the government has only been setting deadlines without thinking about the basic infrastructure and the billions of dollars of investments needed for that.
"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," managing director, retail and digital banking, PK Gupta said.