These days people acknowledge their responsibility to make choices that are not harmful to the environment. Buying an electric vehicle is an environment-friendly decision. Though the electric vehicles (EV) industry is at a nascent stage in India, the future belongs to electric cars and bikes.
Those planning to buy electric vehicles may find the price of such vehicles on the higher side, but that is the upfront cost. Since fuel prices are increasing almost every other month, driving a non-electric vehicle, in the long run, has become even more expensive. And due to the eco-friendly nature of electric vehicles, the Central and state governments are promoting the sales of such vehicles by offering tax benefits and incentives.
These financial incentives help you reduce the overall cost of buying electric vehicles. Besides, electric vehicles require low maintenance as compared to conventional vehicles. The one-time cost may be higher, but you will realise that it is pocket-friendly as the effective price for electric vehicles is less over the lifetime.
Many banks offer attractive and lower financing to purchase electric vehicles. These loans are often called green or electric vehicle loans. If you buy a non-electric vehicle, you end up paying more interest as the rate is higher than what is offered to buy an electric vehicle by some financial institutions. Here is what you must do.
Compare Interest Rates
Always compare the interest rate between electric and non-electric vehicles. Check the amount of money you are saving and take a call accordingly. Compare interest rates of different banks and choose the institution that offers you the best deal per your requirements.
Upfront Cost and Maintenance of Vehicle
Remember you are going to pay more upfront cost for buying an electric vehicle. So, take a look at your budget and decide whether you can afford it. You must consider the EMI amount. It should not be so high that you end up delaying payments or defaulting on your loan due to the lack of funds. Also, check the maintenance cost and other charges you might have to bear after purchasing the car, according to Bankbazaar.
Electric vehicles are slowly growing in India, so you should know about the technology, mileage and charging time before buying these vehicles. Within cities, electric vehicles can be easily charged, but outside it is not easy to find charging points. You must choose the right vehicle as per your budget and driving requirements. Electric vehicles make less noise, so they help in reducing noise pollution also. You must compare different vehicles before purchasing to enjoy your ride stress-free.
Offers and Discounts
Check the offers and discounts both by the government and the vehicle companies. Typically, registration fees and road tax are lesser for purchasing electric vehicles. The governments offer multiple incentives, which you must check to save money.
Lastly, electric vehicles are worth the money you spend if you make the right choice in terms of finance and selection of the vehicle. It would be best if you also remembered that charging infrastructure is still inadequate in India, but it is growing with time. Hence, it is advisable to take your decision basis all the factors to avoid inconvenience later.
The table below will help you compare green vehicle loan interest rates vs non-green vehicle loan interest rates. You can decide basis your requirements.
Interest Rates: Electric Vs Non-Electric Vehicle
Compiled by BankBazaar.com
Note: Interest rates on Car Loan for electric and non-electric vehicle for all listed (BSE) Public & Pvt Banks considered for data compilation (Excluding small finance banks); Banks for which data is not available on their website are not considered. Data collected from respective bank’s website as on 05 Jul 2022. Top Banks with lowest interest rates on e-vehicle are listed in ascending order i.e., bank offering lowest interest rate on electric Car loan is placed at top and highest at the bottom. Lowest interest rate offered by the banks irrespective of loan amount is shown in the table.