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India encourages citizens to opt for electric vehicles. The government aims for becoming a 100% electric vehicle nation by 2030, and many key initiatives have been announced accordingly. Banks too have taken measures to motivate buying EVs by offering attractive loans. The largest public sector bank, the State Bank of India (SBI) encourages people to apply for EVs through their Green Car Loan scheme for reducing their carbon footprint.

Earlier this week, SBI through its Twitter account said, "Charging India’s Green Future! SBI provides India’s first Green Car Loan to encourage people to reduce their carbon footprint and opt for electric vehicles."

In the Green Car Loan scheme for EVs, SBI offers an interest rate from 7.25% to 7.60% with effect from May 15, 2022. The repayment period starts with a minimum of 3 years and to a maximum of 8 years. The eligible age group is from 21 years to 67 years for sanctioning the loan.

SBI gives further concession of 20 basis points in the applicable rate of interest for normal car loans across the category of customers.

Its margin is up to 90% of the on-road price.

Under the scheme, SBI offers electric vehicle loans to three categories.

The first category is for regular employees of Central Public Sector Enterprises (Maharana’s/Navratnas/ Miniratnas). Defence Salary package(DSP), Para Military salary package(PMSP) & Indian Coastal Guard Package(IGSP) Customers and Short Commissioned Officers of various Defence establishments.

For government employees, SBI keeps income criteria of a minimum of 3 lakh. Against this income, SBI offers a maximum loan of up to 48 times the net monthly income.

The second category is for professionals, self-employed, businessmen, proprietary/partnership firms who are income tax assesses. For this category, income criteria are defined as net profit or gross taxable income of 3 lakh per annum.

For the second category, SBI gives a maximum loan of 4 times net profit or gross taxable income as per ITR after adding back depreciation and repayment of all existing loans.

The third category is the person engaged in agricultural and allied activities. The income criteria are set at a minimum of 4 lakh net annual income. Maximum loan up to 3 times of net annual income.

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