An Informative Guide on Electric Vehicle Loan

Electric vehicles (EVs) are getting quite popular nowadays. If you’re planning to switch to this type of vehicle, you can get an electric vehicle loan easily. Many financial institutions including leading banks and Non-Banking Financial Institutions (NBFCs) provide financing for this type of vehicle.

By getting vehicles that run on electricity instead of traditional fuel, you can do your part for the environment and save significantly on fuel costs. You also become eligible for special tax benefits u/s 80EEB of the Income Tax Act.

Read on to learn more about how to get an EV loan, its eligibility, paperwork and more.

What is an Electric Vehicle and How They Work?

An EV is a type of automobile that runs on electric motors, with electricity stored in batteries or fuel cells. Here is how it works:

• EVs function by converting electrical energy into mechanical energy for propulsion.
• Key components of an EV include the electric motor, power control unit, battery pack and charging system.
• The electric motor gets power from the battery pack and converts it into energy to drive the wheels.
• The battery pack is reloaded through charging at stations or via regenerative braking.

How to Get an Electric Vehicle Loan?

To get financing for your EV, follow these steps:

• Step 1: Choose a suitable EV from your car or two-wheeler dealership
• Step 2: Explore and compare the loan terms that various lenders offer
• Step 3: Choose a lender that offers the best deal and check the eligibility, paperwork and application process
• Step 4: Fill out the application form, submit the required documents and complete other formalities
• Step 5: After approval, the lender will disburse the amount

Also Read: How to get a Two Wheeler Loan?

Eligibility Criteria for Electric Vehicle Financing

To apply for the loan, you need to meet the loan eligibility requirements. While it varies with lenders, here are the general criteria:

• You must be an Indian resident
• You must be above the age of 21 years
• You should have a credit score of 750 or above
• You must have a work experience of at least 12 months
• If you are self-employed, you must be operating a business for a minimum of 24 months

Paperwork Requirements for Electric Vehicle Financing

You also need to submit some paperwork for verification, such as:

• Proof of Identity: Passport, PAN card, voter ID card, driving licence, etc.
• Address Proof: Passport, ration card, driving licence, voters ID card, utility bills, etc.
• Proof of Income and Employment: Salary pay slips and bank statements for the last 3 months, Form 16, ITR documents for the last 2 years

Benefits of Electric Vehicles

With an EV, you enjoy a plethora of perks including benefiting the environment. Here are some other advantages:

• Electric vehicles have lower running costs leading to savings on fuel expenses 
• You enjoy special tax benefits under Section 80EEB of the Income Tax Act
• Maintenance costs for electric vehicles are lower than petrol or diesel vehicles since there are fewer moving parts
• Modern EVs can offer better performance than traditional vehicles that run on fuel
• EVs are easy to drive, quiet and have simplified controls, making them convenient 
• They produce zero emissions, significantly reducing your carbon footprint
• You can charge an EV at home without the need to visit petrol stations

Also Read- 3 Loans that Give you Tax Benefit

To finance your EV purchase, you can also consider getting an  Instant Cash Loan from Fibe of up to ₹5 lakhs. You can use it to pay the down payment or the entire cost without any hassles since these loans come with no restriction on end use. 

You also repay the dues comfortably over a tenure of 36 months. With quick processing and fund disbursal to your account, you can get the vehicle without any delay. Install the Fibe Personal Loan App or register on the website to get the funding with an easy application process and minimal documentation.

FAQs on EV Loan

How to invest in EV vehicles?

You can get an electronic vehicle or EV from any car or two-wheeler dealership. To finance the purchase, you can get a personal loan or a loan that is specially tailored for EVs.

What is EMI in electric vehicles?

Electromagnetic interference, or EMI in EVs, is any disturbance that transfers to the target from the source through a conducting path. A conducting path can be:

• Cables
• Wires
• Traces
• DC power bus
• AC power bus

How do I register for EV?

To register for an electric vehicle, you need to visit a two-wheeler or car dealerships that offer EVs. Then, you need to get a loan, if required and complete the formalities.