Net Zero Summit

SBI launches Green Car Loan to promote use of EVs in the country

In a bid to promote and incentivise shift to green vehicles SBI on Monday launched “Green Car Loan” discounted loan for buyers.

The new scheme will offer loan at 20 basis points lesser than the interest rate on the existing car loan schemes.

The EMI per Rs.1 lakh will be lower at Rs.1,468 for 96 months against Rs.1,622 for 84 months, based on the maximum tenor, in line with the existing scheme.

The Green Car Loan provides borrowers longer tenure of eight years and as an added incentive, the bank has waived all processing fees for the first six months of the loan.

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“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 fee for the first six months of the launch,” said SBI in a statement.

The lender also added that this was in keeping with the government’s objective to ensure that 30% vehicles on the road run on electricity by 2030.

The bank also became the first major Indian organisation, along with Wipro, to join the Climate Group’s EV100 initiative for accelerating the rollout of electric vehicles worldwide.

“These days, cars are perceived to play a vital role in polluting environment. 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,” said P K Gupta, MD, SBI.