Making the switch to an electric vehicle is an exciting prospect, but navigating the loan application process can often feel overwhelming. Whether you’re eyeing a new electric scooter, a family-friendly EV car, or a commercial three-wheeler, securing the right financing is key. This simple, step-by-step guide will demystify the process and walk you through everything you need to know to get your EV loan approved.
Step 1: Choose Your EV & Determine Your Budget.
The first step is to decide on the specific electric vehicle you want. Your choice of an EV scooter like the Ola S1, a car like the Tata Tiago EV, or a commercial vehicle will determine the on-road price and the loan amount you need. Once you’ve decided, obtain a pro forma invoice from the dealer.
Step 2: Check Your Eligibility & Gather Your Documents.
Lenders have a standard set of eligibility criteria. Before applying, ensure you meet them:
- Age:Â Typically between 21 and 65 years.Â
- Credit Score:Â A score of 650 or higher is generally preferred, with higher scores unlocking better interest rates.
- Minimum Income: This varies, but a minimum monthly income of around ₹15,000 to ₹25,000 is a common benchmark.
- Required Documents:Â Have digital or physical copies of your PAN card, Aadhaar card (for address proof), latest salary slips or ITR filings (for income proof), and bank statements for the last 3-6 months.
Step 3: Compare Your Lending Options (Banks vs. Fintechs)
You have two primary options: traditional banks (like SBI, HDFC) or specialised EV fintech lenders (like Turno, Revfin). Banks may offer lower interest rates if you have a high credit score, but their process can be slower. Fintechs often provide faster, fully digital approvals and may have more flexible eligibility criteria.
Step 4: The Application Process
- The Fintech Way (Fast & Digital):Â Most fintech lenders offer a seamless digital process. Using a platform like Turno as an example, the steps are typically: 1. Apply online. 2. Receive a call back within minutes. 3. Share your KYC documents digitally. 4. Get your loan disbursed in as little as 48 hours.Â
- The Traditional Bank Way: Applying with a bank often involves visiting the nearest branch, filling out physical application forms, and submitting photocopies of your documents. Â
Step 5: Maximise Your Savings
Once your loan is approved, don’t forget to maximise your savings. Inquire about any available exchange bonuses for your old vehicle and check for applicable state-level subsidies on road tax or registration fees. Combining these benefits with your loan can significantly reduce the total amount you need to finance.
Conclusion: Securing an EV loan is more accessible than ever. By following these steps, you can navigate the process with confidence.
Your Quick Checklist:
- Finalise EV Model & Budget,
- Check Eligibility
- Gather Documents
- Compare Lenders
- Apply & Submit
- Ask about Subsidies.Now that you know the steps, get the detailed lender information you