Here's a comparison of car loan interest rates in May 2025, highlighting lower rates and government benefits for electric vehicle buyers in India.
Saloni Kumari | May 24, 2025 |
Shocking Car Loan Rates Revealed for May 2025 – EV Buyers Rejoice
After noticing the worst environmental conditions in India, the Indian government has turned its focus to sustainable and eco-friendly living. Among these electric vehicles (EVs) is the fastest-growing measure. With this government move, financial institutions are also contributing to it by providing special car loans on vehicles running on electricity.
Interesting and competitive car loans are being offered by numerous banks in India. These rates are a little lower for vehicles running on electricity to promote eco-friendly transportation in India. Among these financial institutions, the interest rate offered by the Indian Overseas Bank begins from 8.15% on electric vehicles and from 8.35% on non-electric vehicles.
Similarly, Union Bank is offering interest rates up to 8.20% on electric vehicles and up to 8.30% on non-electric vehicles. The interest offered by Punjab and National (PNB) bank is a little higher in comparison to other banks, i.e., 8.35% for electric vehicles and 8.40% for non-electric vehicles. Central Banks offer the same interest on both electric and non-electric vehicles, i.e., 8.35%.
Similarly, Punjab and Sind Bank are offering interest rates of 8.40% and 8.50% on electric and non-electric vehicles, respectively. On the other hand, Canara Bank is providing an interest rate of 8.55% on EVs and 8.65% on others. Indian Bank offers 8.70% on electric and 8.75% on other vehicles.
Among the top banks, the State Bank of India (SBI) offers a lower interest rate of 9.10% for electric vehicle (EV) loans and 9.20% for other vehicle loans. HDFC Bank charges 9.20% for EV loans and 9.27% for regular vehicle loans. Karnataka Bank has the highest rates, with 9.32% for EVs and 9.42% for non-electric vehicles.
As per the official website of HDFC Bank, “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.”
| Bank | Interest Rate per Annum | |
| Electric Vehicles | Non-Electric Vehicles | |
| Indian Overseas Bank | 8.15% | 8.35% |
| Union Bank | 8.20% | 8.30% |
| Punjab National Bank | 8.35% | 8.40% |
| Central Bank of India | 8.35% | 8.35% |
| Punjab and Sind Bank | 8.40% | 8.50% |
| Canara Bank | 8.55% | 8.65% |
| Indian Bank | 8.70% | 8.75% |
| State Bank of India | 9.10% | 9.20% |
| HDFC Bank | 9.20% | 9.27% |
| Karnataka Bank | 9.32% | 9.42% |
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
