Electric Car Loans Get Cheaper : PNB Slashes EV Rates Below Petrol and Diesel Loans
Electric Car Loans Get Cheaper : Looking to finance a new electric vehicle? Good news—Punjab National Bank (PNB) has just made the switch to green mobility more affordable. The bank has reduced its electric car loan interest rates to 8.30%, making them more attractive than those for petrol and diesel vehicles. This strategic move not only benefits eco-conscious buyers but also supports India’s broader mission for sustainable transportation.
🌱 Why PNB’s EV Loan Rate Cut Matters
With rising fuel costs and climate concerns, electric vehicles (EVs) are gaining traction across India. PNB’s latest rate revision signals a stronger push toward environmentally responsible lending.
Here’s what you need to know:
- EV loan interest rate now at 8.30% – slightly lower than the 8.35% for petrol/diesel vehicles.
- More than 5,000 EV loans sanctioned by PNB in FY 2024–25.
- Multiple application channels: digital (via PNB One app) and in-branch assistance available.
“Banking can be a powerful tool for environmental change,” says Shri Firoz Hasnain, CGM – MSME & Retail at PNB. “We’re committed to supporting India’s journey towards a low-carbon economy.”
💡 PNB’s Commitment to Green Financing
PNB isn’t just stopping at electric vehicles. The bank is actively growing its green product portfolio:
- Solar Rooftop Financing Scheme: Get loans at just 6.50% interest for systems up to 10 kW.
- Flexible repayment options of up to 10 years (120 months).
- Promotes clean energy usage and reduces household electricity bills.
These offerings reflect a trend among public sector banks to provide financing that supports climate goals while making it easy for customers to adopt sustainable technologies
💸 How Do EV Loan Rates Compare Across Indian Banks?
If you’re shopping for a vehicle loan—electric or traditional—here’s how the major players stack up:
| Bank | EV Loan Rate (p.a.) | Petrol/Diesel Vehicle Rate (p.a.) |
|---|---|---|
| Indian Overseas Bank | 8.15% | 8.35% |
| Union Bank of India | 8.20% | 8.30% |
| Punjab National Bank | 8.30% | 8.35% |
| Central Bank of India | 8.35% | 8.35% |
| Punjab & Sind Bank | 8.40% | 8.50% |
| Canara Bank | 8.55% | 8.65% |
| Indian Bank | 8.70% | 8.75% |
| SBI (State Bank of India) | 9.10% | 9.20% |
| HDFC Bank | 9.20% | 9.27% |
| Karnataka Bank | 9.32% | 9.42% |
✅ Key Takeaway
If you’re looking for the lowest EV loan interest, Indian Overseas Bank leads at 8.15%, followed closely by Union Bank and PNB.
📲 How to Apply for a PNB EV Loan
Getting started with your PNB EV loan is simple and flexible:
Option 1: Digital Application
- Use the PNB One mobile app or PNB’s official website.
- Fill in your vehicle loan details and upload documents.
- Get instant approval notifications.
Option 2: In-Branch Application
- Visit your nearest PNB branch.
- Speak with a loan officer who can guide you through the process.
- Great for first-time buyers or those who prefer in-person assistance.
🧠 Pro Tips Before Applying for an EV Loan
- Compare Total Loan Costs
Even with a low-interest rate, be mindful of processing fees, prepayment penalties, and insurance add-ons. - Check for Manufacturer Tie-Ups
Some banks offer special deals if you buy from select EV brands partnered with them. - Look for Government Subsidies
Under FAME II (Faster Adoption and Manufacturing of Electric Vehicles) and state EV policies, you may be eligible for additional rebates or tax benefits.
🌍 Why Choose an EV in 2025?
Electric vehicles aren’t just a trend—they’re the future. Here’s why:
- Lower running costs (EVs cost ₹1–₹2 per km vs. ₹6–₹9 for petrol vehicles).
- Zero tailpipe emissions, helping fight urban pollution.
- Wider charging infrastructure is expanding across India, with over 10,000 public chargers already operational.
- Government incentives and reduced road tax in states like Delhi, Maharashtra, and Gujarat.
📘 Real-Life Example
Ananya Sharma, a software developer in Bangalore, recently opted for a Tata Nexon EV. Thanks to PNB’s reduced EV loan rate of 8.30%, she saved over ₹45,000 in interest compared to a traditional petrol car loan over a 5-year period.
“The process was seamless, and the lower EMI made owning an EV more affordable than I imagined,” she says.
✅ Conclusion: Is Now the Right Time to Go Electric?
Absolutely! With PNB’s reduced EV loan rates, flexible financing, and the growing popularity of green mobility, it’s a smart time to make the switch. Whether you’re looking to cut your fuel costs or do your part for the planet, financing an electric vehicle has never been more rewarding
🔍 FAQs
1. What is the interest rate for PNB’s electric car loan?
PNB offers electric vehicle loans starting at 8.30% p.a., lower than the rates for traditional vehicles.
2. Is it better to buy an EV with a loan now?
Yes. With interest rates dropping and incentives rising, now is an excellent time to buy.
3. Are electric two-wheelers covered under the EV loan scheme?
Yes, but note that two-wheeler loan rates are often higher, ranging from 18% to 22%.
4. Can I apply for an EV loan online?
Yes. Use the PNB One app or visit their official website to apply.