The State Bank of India (SBI) has introduced the ‘Green Car Loan,’ scheme specifically designed for buyers interested in purchasing an electric car. The new loan scheme was launched to celebrate World Earth Day on 23 April, 2019.
As per SBI, this loan is part of its environment friendly commitment towards building a cleaner and greener environment. With this initiative, SBI has become India’s first bank to offer a loan specifically for electric cars.
Through this initiative, SBI aims to encourage people to purchase electric vehicles and this Green Car loan helps in chasing that goal by offering a loan at 20bps lesser than the current car loans. This reduces the interest quite significantly.
The Green car Loan is also offered with zero processing fee, however, this benefit will only be applicable to the customers who opt for the loan before November 2019.
The Green Car Loan also has one of the longest repayment durations – 8 years.
“We are pleased to introduce the concept of ‘Green Car Loan’. These days, cars are perceived to play a vital role in polluting environment. We believe SBI Green Car Loan (Electric Vehicle) scheme would act as a change agent in auto loan segment and encourage customers to switch to electric vehicles which can improve overall air quality and lower carbon emissions,” said P K Gupta, MD (R & DB), SBI.