EV loan interest rates in India range from 7.5% to 12% per annum in 2026. Banks like SBI, HDFC, and ICICI offer preferential rates for EVs. Some state governments offer an additional 2–3% interest subsidy under their EV policies. Union Bank of India's 'Green Car Loan' offers rates starting at 7.5% for EVs.

Most banks require a minimum down payment of 15–20% of the vehicle's ex-showroom price for EV loans. A higher down payment reduces your EMI and total interest paid. Under FAME-II and state subsidy schemes, the effective on-road price may be lower, reducing the loan amount needed.

EV car loans in India are typically available for tenures up to 7 years (84 months). For two-wheelers and e-bikes, the maximum tenure is usually 3–5 years. Longer tenure means lower EMI but higher total interest outflow.

Yes. Under Section 80EEB of the Income Tax Act, you can claim a deduction of up to ₹1.5 lakh per year on the interest paid on an EV loan. This benefit is available to individual taxpayers (not companies) who purchase EVs for personal use. The loan must be from a bank or NBFC registered in India.