SBI offers 20 bps discount on EV loans

Mumbai: In a bid to boost volumes for the struggling electric vehicles segment, State Bank of India Monday launched a discounted loan for buyers of such vehicles pricing 20 basis points lower than its existing auto loans.

"We believe SBI green car loan (electric vehicle) scheme would act as a change agent in the auto loan segment and encourage customers to switch to electric vehicles which can improve overall air quality and lower carbon emissions," managing director, retail and digital banking, PK Gupta said.

The scheme that comes with the longest repayment period of up to eight years is a strategic inclusion to the bank's auto loan segment offered with zero processing fee for the first six months of the launch.

Of the 3.6 million (FY19) car industry, electric vehicles constitute around 1,000 units per annum, according to industry data.