EV Car Loan Interest Rate November 2026: Banks With a Green Rate

How the EV car loan interest rate is set in November 2026

Thirty lenders sit on our new car rate table; 13 print a separate rate or concession for an electric car, and the other 17 (30 minus 13) publish no EV figure at all.

Eleven of the 13 are public sector banks and nine start under 8% p.a. Punjab & Sind Bank's PSB E-Vahan is lowest at 7.55% for a CIBIL score of 825 and above, 0.30 under its 7.85% petrol floor. UCO Bank's 7.60% for the same score is 0.10 under its normal floor, and Union Green Miles sits 0.10 under Union Bank of India's normal band. Canara, Indian Overseas Bank, PNB and Central Bank of India shave 0.05; Indian Bank trims only the ceiling.

SBI's Green Car Loan is fixed-rate at 8.45% to 9.50%. The scheme page promises 25 basis points off, yet the rate table shows 0.10 under the 8.55% normal floor; we go by the table. Bank of Maharashtra's Maha Super Green Car Loan takes 0.25% off the normal rate but never below 7.70%, the scheme's lowest, so a borrower already on the floor gains nothing. Bank of Baroda's bob Green Wheel is a fixed-rate table from 8.50%, 0.65 above its own 7.85% floating petrol floor (8.50 minus 7.85).

HDFC Bank's EV Car Loan page prints 8.15% onwards, 0.25 under its 8.40% petrol rate, while its EV fees page says 8.40%; we flag the clash. Tata Capital calls its 8.75% indicative, 0.74 under its 9.49% new car rate (9.49 minus 8.75).

EV loan tenure, funding and fees as published

• SBI Green Car Loan: 3 to 8 years, a year beyond its normal 84 months; up to 100% of on-road price; processing fee nil; age 21 to 70.
• HDFC Bank EV Car Loan: 12 to 96 months, up to ₹10 crore. The eighth year is a scheme for salaried Super Cat A, Cat A and central government staff with income of ₹5 lakh and above, funding 90% of ex-showroom price.
• Union Green Miles: 84 months, no loan ceiling, 10% margin, processing nil, age 18 to 75.
• Tata Capital: up to 7 years, up to 100% on-road funding, fee up to 2% plus GST.

The other nine print no EV tenure; their normal maximum is 84 months. Bank of Maharashtra's green scheme has no processing fee, UCO Bank waives processing and documentation charges on car loans, EVs included, until 31 December 2026, and Punjab & Sind Bank's E-Vahan charges 0.25% plus GST; our fee guide has the rest. State EV policies vary, so ask the dealer to show any benefit on the quotation; Union Bank deducts an upfront subsidy from the loan, not from your margin.

What the RBI rules say about electric car loans

Nothing specific. The RBI's priority sector lending directions, updated to September 2026, give an EV loan no lower rate, lighter risk weight or priority sector status; every green concession above is the bank's own scheme.

• Floating rates follow the repo rate, 5.50% since the 25 basis point increase of 7 October 2026, and reset at least once in three months. SBI's and Bank of Baroda's green tables are fixed.
• No pre-payment charge on floating loans. The RBI's 2025 directions on pre-payment charges bar any foreclosure or part-payment charge on a personal floating-rate loan sanctioned from 1 January 2026. Fixed-rate loans are outside this; SBI recovers 2% plus GST on one closed within 24 months.
• The Key Facts Statement shows the true cost. Every car loan sanctioned since 1 October 2024 comes with a KFS stating the APR with every charge; a fee missing from it cannot be charged later without your consent.

The RBI sets no loan-to-value rule for car loans; the 90% and 100% funding lines are each lender's policy.

What the green concession is worth on your EMI

Our reckoner carries two rates, 7.7% and 8.5%, both EV floors above: Bank of Maharashtra's green floor and the first row of bob Green Wheel's table. The figures use a 7-year term.

On ₹10 lakh, the 0.8 of a point between them (8.5 minus 7.7) is ₹399 a month (₹15,836 minus ₹15,437) and ₹33,543 of interest (₹3,30,265 minus ₹2,96,722). Most concessions in the table are far smaller, small enough that a fee waiver can matter as much; the car loan EMI calculator takes any rate.

An 8-year term is a cash-flow tool, not a saving: at 7.7%, ₹10 lakh costs ₹20,133 a month over 5 years and ₹15,437 over 7, but interest climbs from ₹2,07,987 to ₹2,96,722, which is ₹88,735 more (₹2,96,722 minus ₹2,07,987).

How to choose the right EV car loan

1. Start from your score. The floors under 8% need 825 at Punjab & Sind Bank, UCO Bank and Union Bank of India, 800 and above at Indian Overseas Bank, and 750 at PNB unless you are a woman borrower.
2. Compare across banks, not only fuel types. Bank of Baroda's green 8.50% sits above UCO Bank's ordinary 7.70% at the same 825 score; our lowest car loan rates page ranks every floor with its condition.
3. Decide fixed or floating. Fixed buys certainty and gives up free foreclosure; SBI and Bank of Baroda are fixed, Canara and PNB print both.

Common mistakes with an electric car loan

• Reading green as proof of a lower rate; three lenders above disprove it.
• Stretching to 8 years for the EMI alone; see what going from 5 to 7 years already adds in interest above.
• Comparing rates and skipping the fee line and the Key Facts Statement's APR.

Start at the car loan hub for every lender we track.