The new scheme will offer loan at 20 basis points lower than the interest rate on the existing car loan schemes. The EMI per ₹1 lakh will be lower at ₹1,468 for 96 months against ₹1,622 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,” SBI said in a statement.
In March 2018, the Government of India launched the National E-Mobility Program to achieve 100% e-mobility by 2030.
“We are pleased to introduce the concept of ‘Green Car Loan’. These days, cars are perceived to play a vital role in polluting environment. We believe SBI Green Car Loan (Electric Vehicle) program would act as a change agent in auto loan segment and encourage customers to switch to electric vehicles which can improve overall air quality and lower carbon emissions”, P.K Gupta, MD (R&DB) SBI said.
The Union Cabinet recently approved the implementation of a program titled ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) with a total budget of ₹100 billion ($1.41 billion), and the duration of the program is three years with effect from April 1, 2019.
In line with the government’s plan, SBI has already announced 100% migration towards of its auto loans towards electric vehicles by 2030 to reduce carbon footprint. The bank also became the first major Indian organization along with Wipro to join the Climate Group’s EV100 initiative for accelerating the roll-out of electric vehicles worldwide.