Here are some Frequently Asked Questions on EV Car Loan
08 January, 2025
Synopsis
Electric Vehicles are becoming popular as they are a sustainable mode of transport.
Along with the demand for EVs the demand for EV Car Loans has also risen.
These frequently asked EV loan application questions will help clear your queries about eligibility, government subsidies and more.
As India steers towards a more sustainable future, the adoption of EVs (Electric Vehicles) is gaining momentum. Financing an electric vehicle comes with its own set of queries, and as a potential buyer, you ought to have questions about the loan process, eligibility, interest rates and more. In this article, we will address some of the most frequently asked Electric Vehicle loan questions.
EV Car Loan FAQs
1. What is an EV Car Loan?
An EV Car Loan is an auto loan designed to finance the purchase of electric vehicles. These loans function similarly to traditional Car Loans, where the lender provides funds to you to purchase the vehicle, and you repay the loan in monthly instalments over a predetermined period.
2. What are the Eligibility Criteria for an EV Car Loan?
Eligibility criteria for an EV Car Loan are generally like those for traditional Car Loans. Common eligibility criteria include:
Age: You should typically be between 21 and 65 years of age.
Income: A stable income source is required, with a minimum income threshold that varies by lender.
Employment: For salaried individuals, a minimum of two years of work experience is often required. For self-employed individuals, the business should be operational for at least two to three years.
Credit Score: A good credit score is essential for securing a loan at favourable terms. Lenders usually look for a credit score of 730 or above.
3. Is Insurance Mandatory for an EV Car Loan?
Yes, per Section 146 of the Motor Vehicles Act, 1988, insurance is mandatory with a car, including an EV car. Lenders require the vehicle to be insured to protect their interests in case of accidents, theft or damage. Comprehensive insurance coverage is typically required, and the cost of insurance can either be paid upfront or included in the loan amount, depending on the lender’s policy.
4. How Can I Apply for an EV Car Loan?
The application process typically involves the following steps:
Research: Compare and shortlist the EV of your choice.
Eligibility Check: Login to the lender website. Ensure you meet the lender’s eligibility criteria before applying.
Documentation: Gather the necessary documents, including proof of identity, address, income, and employment.
Application Form: Fill out the loan application form with accurate details.
Loan Approval: The lender will review your application, and if approved, they will disburse the loan amount directly to the dealer or your account.
Own An EV easily with the Help Of An HDFC Bank EV Car Loan
An EV Car Loan helps finance electric vehicles, often with lower interest rates and government incentives. You can apply for an EV Car Loan from HDFC Bank online and get competitive terms.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Car Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank’s requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
