Best EV Car Loans in India 2025 – Lowest EMI Options

Why Banks Are Offering Better Deals on EV Loans

A few years ago, EV loans were rare. Today, every major bank wants a piece of the clean-mobility pie. The government’s push for electric vehicles, combined with green financing initiatives, means banks are rewarding eco-conscious buyers with lower interest rates. Thankfully, 2025 brings some of the best EV car loans in India with the lowest EMI options we’ve seen so far.

Interestingly, many banks have also introduced special repayment schemes, longer tenures, and zero prepayment penalties to encourage buyers. So, choosing the right bank can make a real difference to your monthly EMI.

SBI Green Car Loan – A Reliable Choice

When it comes to the lowest EV car loan interest rate, SBI often tops the list. The State Bank of India’s Green Car Loan is tailor-made for electric vehicles.

Here’s what you get:

• Interest rate: Starts from 8.65% p.a. (lower than their standard car loan rate).
• Tenure: Up to 8 years.
• Processing fee: Up to 50% discount for EV buyers.
• No hidden charges and zero prepayment penalty after one year.

So if you’re planning to check your EMI before applying, try the SBI Electric Vehicle Loan EMI Calculator online — or even better, use the EV Loan EMI Calculator to compare rates across banks side by side.

For a ₹10 lakh loan over 5 years at 8.65%, your EMI would be around ₹20,630. Not bad for a fully electric upgrade.

HDFC Bank EV Car Loan – Modern and Flexible

If you’re someone who prefers smooth digital banking, HDFC’s EV car loan is definitely worth exploring.

Highlights:

• HDFC EV Car Loan interest rate: Around 8.9% to 9.4% p.a. depending on credit score.
• Up to 100% on-road funding for select EV models.
• Flexible tenure up to 7 years.
• Instant approval for pre-approved customers.

HDFC is also known for fast disbursal — meaning your car dealer doesn’t have to wait weeks for payment.

To be fair, the rate might be slightly higher than SBI’s, but HDFC’s overall process, especially their digital approval system, can make the experience smoother for salaried professionals.

Axis Bank – Competitive and Customer-Friendly

Axis Bank has quickly caught up in the EV loan game. Their Green Vehicle Loan is available for both electric cars and electric two-wheelers.

• Interest rate: 9.0% – 10.5% (depending on credit profile).
• Loan tenure: Up to 7 years.
• Financing: Up to 85–90% of on-road price.
• Minimal paperwork if you’re already a customer.

It’s a good middle ground for people who might not qualify for the lowest rate but still want a reasonable EMI with flexible options.

ICICI Bank and Others – Worth a Look Too

ICICI Bank, Kotak Mahindra, and Federal Bank have also entered the EV lending space with attractive options:

• ICICI Bank EV Loan: Around 9.5%, fast online processing.
• Kotak Green Car Loan: Up to 8 years, 0.25% discount on standard car loans.
• Federal Bank EV Loan: Starts at 9.0%, available for both four and two-wheelers.

Even NBFCs like Tata Capital and Mahindra Finance are now offering special EV financing programs with cashback and flexible EMIs.

Lowest EV Car Loan Interest Rate – Side-by-Side View

Bank/NBFC	Interest Rate (Approx.)	Max Tenure	Highlights
SBI Green Loan	8.65%	8 years	Lowest rate, public bank trust
HDFC Bank	8.9% – 9.4%	7 years	100% funding, fast approval
Axis Bank	9.0% – 10.5%	7 years	Covers 2W & 4W EVs
ICICI Bank	9.5%	7 years	Easy online process
Kotak Mahindra Bank	9.25%	8 years	Discount for green buyers
Federal Bank	9.0%	7 years	Flexible repayment options

How to Choose the Right EV Loan

To be honest, the “best” loan isn’t always about the lowest rate. It’s about balance — rate, tenure, flexibility, and your own financial comfort.

Here’s what to consider before choosing one:

• Check your credit score – a good score often unlocks better rates.
• Compare EMIs using a tool like the EV Loan EMI Calculator.
• Look for zero prepayment options – in case you want to close the loan early.
• Ask for EV-specific perks – some banks offer reduced insurance premiums or free accessories.

A few minutes of comparison can literally save you thousands over the loan term.

2-Wheeler Electric Vehicle Loan Interest Rate

Not everyone is looking for a car — India’s EV boom is led by scooters and bikes.

If you’re thinking about getting an Ola S1, Ather 450X, or TVS iQube, you’ll be glad to know that banks and NBFCs now offer two-wheeler electric vehicle loan interest rates starting from 9% p.a.

SBI and HDFC both offer financing for e-scooters, and some fintechs even provide instant loans via apps. The EMIs can be as low as ₹2,000–₹3,000 per month, making it easier for first-time EV buyers to make the switch.

How EMI Calculators Help You Plan Better

It’s one thing to know the rate, but it’s another to see what it means for your budget.

Before you apply for any loan, use a simple Electric Car Loan EMI Calculator to test different loan amounts and tenures. You can find one here: EV Loan EMI Calculator.

Enter your loan amount, tenure, and interest rate — it’ll instantly show your monthly EMI and total interest. It’s an easy way to compare, say, SBI’s 8.65% vs HDFC’s 9.3%, and see how much you actually save over 5 years.

FAQs

Final Thoughts

To be fair, buying an EV isn’t just about helping the planet anymore — it’s about making a smarter financial choice. With the best EV car loans in India 2025 offering the lowest EMI options, there’s never been a better time to go electric.

SBI, HDFC, and Axis are leading the charge, but it’s worth comparing your choices before deciding. Use tools like EMI calculators, watch for green discounts, and don’t hesitate to negotiate a bit — you’d be surprised how flexible banks can be for EVs.

After all, saving on both fuel and EMI is the kind of “win-win” we could all use in 2025.