Lessons Learned from My EV Loan Application
Lessons Learned from My EV Loan Application
Buying an electric vehicle (EV) was a big decision — but applying for an EV loan to finance it came with its own set of challenges, surprises, and valuable insights. If you're considering going electric and financing it through a loan, here’s what I wish I had known earlier.
1. Research Goes a Long Way
I initially thought all car loans were the same, but EV loans are a whole different game. Public sector banks like SBI and Bank of Baroda offer green car loans with lower interest rates and special terms for electric vehicles. Private banks and NBFCs may offer faster processing but at higher rates.
Lesson: Compare at least 3–4 banks and look specifically for green/EV loan products — not just general auto loans.
2. Online Pre-Approval Saves Time
Many banks now allow you to apply for pre-approval online. I used HDFC’s online portal to check eligibility before going to the dealership. This saved time and made me a more confident buyer.
Lesson: Use online eligibility checks and EMI calculators before stepping into a showroom.
3. Subsidies Aren’t Automatically Applied
While I expected the FAME II subsidy to reflect in the price directly, the dealer informed me I had to apply separately through the government portal. Some state subsidies also require post-purchase documentation.
Lesson: Understand how and when subsidies apply — and don’t assume they’ll be deducted automatically.
4. Full Funding Isn’t Always a Good Thing
Many green loans offer 100% on-road price financing. While tempting, I realized putting in a small down payment reduced my EMI burden and overall interest cost.
Lesson: If possible, contribute a portion as down payment to save on total interest.
5. Two-Wheeler EV Loans Work Differently
My friend who bought an electric scooter shared that NBFCs are more flexible for two-wheeler EV loans. However, interest rates were slightly higher than car loans.
Lesson: For scooters and bikes, shop around NBFCs or fintec