Electric Scooter: Electric vehicles (EVs) are becoming popular in India. Many people want to buy electric scooters and cars because they are better for the environment and save money on fuel. But sometimes, buying an electric vehicle can be costly. That’s why many people take a loan. If you also want to take a loan for an electric scooter or car, here are the best tips to get a low-interest loan.
Contents
- 1 1. Check Your Credit Score
- 2 2. Compare Interest Rates from Different Banks
- 3 3. Look for Special EV Loan Schemes
- 4 4. Choose a Shorter Loan Tenure
- 5 5. Give Higher Down Payment
- 6 6. Apply with a Co-Applicant (Optional)
- 7 7. Choose a Trusted Lender
- 8 8. Check for Government Subsidies
- 9 9. Negotiate with the Bank
- 10 10. Read the Loan Agreement Carefully
- 11 Conclusion
- 12 Quick Summary Table:
- 13 Latest Updates
1. Check Your Credit Score
Before applying for a loan, check your credit score. A good credit score (750 or above) means you are a trustworthy borrower. Banks and lenders give low-interest loans to people with a high credit score.
Tip:
If your score is low, try to improve it before applying. Pay your existing loans or credit card bills on time.
2. Compare Interest Rates from Different Banks
Never take a loan from the first bank you visit. Always compare offers from multiple banks and NBFCs (Non-Banking Financial Companies). Some banks may offer lower interest rates for EV loans because they support green vehicles.
Tip:
Use online loan comparison tools like BankBazaar, PaisaBazaar, or visit websites of SBI, HDFC, ICICI, Axis, etc.
3. Look for Special EV Loan Schemes
Many banks have special loan schemes for electric vehicles. These loans come with:
- Lower interest rates
- No processing fees
- Flexible EMI options
For example, State Bank of India (SBI) offers a “Green Car Loan” for electric vehicles at a lower rate than regular car loans.
Tip:
Ask your bank if they have any EV loan offers.
4. Choose a Shorter Loan Tenure
When you take a loan for a longer period (like 5 or 7 years), your monthly EMI becomes less, but you pay more total interest.
But if you choose a shorter loan period (like 2 or 3 years), your EMI will be higher, but you save a lot of money on interest.
Tip:
If you can afford slightly higher EMIs, go for a short-term loan.
5. Give Higher Down Payment
The more down payment you give, the lower your loan amount. A smaller loan means lower risk for the lender, so they may offer a better interest rate.
Tip:
Try to pay at least 20% to 30% of the vehicle cost as down payment.
6. Apply with a Co-Applicant (Optional)
If your income or credit score is not very strong, you can apply with a co-applicant like your spouse or parent. This increases the chances of loan approval at a better rate.
Tip:
Make sure your co-applicant has a stable income and good credit record.
7. Choose a Trusted Lender
Some private finance companies may offer quick loans, but their interest rates are very high. Always choose trusted banks or NBFCs with a good track record.
Tip:
Public sector banks often give better deals than private lenders.
8. Check for Government Subsidies
The Indian government gives subsidies and benefits under the FAME India Scheme for buying electric vehicles. These benefits may reduce the cost of the vehicle and the total loan amount you need.
Tip:
Ask the dealer or check the government website for latest EV subsidy details.
9. Negotiate with the Bank
Many people don’t know that they can negotiate the interest rate. If you have a good credit score, stable income, and long relationship with the bank, ask for a lower interest rate.
Tip:
Be polite but firm when you talk to the loan officer.
10. Read the Loan Agreement Carefully
Before signing any loan documents, read all the terms and conditions. Look for:
- Interest type (fixed or floating)
- Processing fees
- Prepayment charges
- Penalty for late payments
Tip:
Avoid loans that have hidden charges or high penalties.
Conclusion
Electric vehicles are the future, and buying one is a smart step. But it’s even smarter if you can get a loan with low interest. Follow these tips to reduce your loan cost and enjoy your new electric scooter or car without financial stress.
Remember: A small effort now can save you big money later.
Quick Summary Table:
| Tips | Why it Helps |
| Check credit score | High score = lower interest rate |
| Compare bank offers | Find the best deal |
| Look for special EV loan schemes | Lower rate and benefits |
| Choose shorter loan tenure | Save total interest cost |
| Pay higher down payment | Smaller loan = lower interest |
| Apply with co-applicant | Improves chances, better rate |
| Use trusted banks/NBFCs | Safe and reliable |
| Use govt subsidies | Reduces loan amount |
| Negotiate with lender | You may get lower rate |
| Read loan terms carefully | Avoid hidden charges |
