What does Electric Vehicle Loan Financing Means?
Now a day fuel prices are continuously rising, many people are considering electric vehicles (EVs) as a smarter and more economical option. This loan is also known as green vehicle loan. EVs not only helping us to reduce pollution but also offering lower running and maintenance costs compared to traditional petrol or diesel vehicles.
While electric and hybrid vehicles can have a higher purchase price, but financing with union bank can make the transition easier. The Green Miles Loan is designed to support those customers who want to switch to eco-friendly transportation. These loans are available with attractive interest rates, simple documentation, and convenient financing options, so that you could bring home your preferred electric or hybrid vehicle with ease.
By choosing a green vehicle today, you can save on fuel expenses, contribute to a cleaner environment, and enjoy a more sustainable way of travelling.
Important Key Features of Electric Vehicle Loan
Individuals can avail of the Electric Vehicle Loan to purchase a new vehicle for personal use anywhere in India.
The loan can be used for
- Purchase of a new Electric 4-Wheeler
- Purchase of a new Electric 2-Wheeler
Loan Amount
For New Electric 4-Wheelers
- Minimum Loan Amount – No minimum limit
- Maximum Loan Amount – No upper limit
For New Electric 2-Wheelers
- Maximum Loan Amount – Up to ₹10 lakh
- Minimum Loan Amount – No minimum limit
Interest Rate of Electric Vehicle Loan
| CIBIL Score | Salaried / Professional (Male) | Salaried / Professional (Female*) | Non-Salaried (Male) | Non-Salaried (Female*) |
| 800 & Above | 7.15% | 7.15% | 7.15% | 7.15% |
| 750 – 799 | 7.35% | 7.35% | 7.35% | 7.35% |
| 700 – 749 | 7.70% | 7.85% | 7.80% | 7.80% |
| 680 – 699 | 8.00% | 7.95% | 8.10% | 8.05% |
| 650 – 679 | 8.85% | 8.85% | 8.85% | 8.85% |
| 600 – 649 | 9.35% | 9.35% | 9.35% | 9.35% |
Loan Amount & LTV
- Loan amount can be sanctioned as per the bank’s eligibility norms.
- Loan-to-Value (LTV) ratio will be applicable as per the approved of loan amount and bank guidelines.
- The applicable LTV remains the same irrespective of the borrower’s employment category.
Additional Benefits
- Women applicants may be eligible for special benefits when the property is owned individually or jointly by a female applicant.
- An additional interest rate concession of 0.10% (10 basis points) may be available after submission of the required Green Building/Green Project Certificate to the bank.
Benefits of Maintaining a Good CIBIL Score
A strong credit score can help you to
- Get a lower interest rate.
- Improve loan approval chances.
- Reduce overall borrowing costs.
- Enjoy better loan terms and benefits.
Note – Maintaining a healthy credit profile can make your green home financing journey more affordable and rewarding.
Eligibility Criteria of Electric Vehicle Loan
| Criteria | Details |
| Eligible Applicants | Applicant should be Indian Resident Citizens and Non-Resident Indians (NRIs) |
| Minimum Age | 18 years |
| Maximum Age | 75 years |
| Repayment for above 60 Years | Allowed for individuals with a regular source of income after 60 years, subject to bank approval |
| Application Type | Individual or Joint Applicant both |
| Maximum Number of Applicants | Up to 3 applicants (1 Main Applicant + 2 Co-applicants) |
| Eligible Co-applicants | Spouse, Father, Mother, Son, Unmarried Daughter |
| Companies/Firms | Eligible to purchase vehicles for use by directors or employees |
| Eligible Vehicle Use | Personal or official use only |
| Commercial Vehicles | Not covered under the scheme |
| 3-Wheeler Finance | Not covered under the scheme |
| Taxi Registration | Not permitted under the scheme |
| RTO Registration | Must be for non-commercial/personal use only |
Important Note
- Available for Indians Resident and NRIs.
- Individual or joint applications allowed.
- Maximum 3 applicants can be taken for loan.
- Companies and firms can apply for name of employee/director vehicles.
- Only non-commercial vehicle registrations are eligible.
- Taxi, commercial vehicle, and 3-wheeler financing are not covered under this scheme.
Documents Required for a Electric Vehicle Loan
| Document Category | Required Documents |
| Loan Application | Duly filled and signed loan application form from both applicant and co-applicant along with credit information. |
| KYC Documents | Identity Proof (Copy of PAN Card, Aadhaar Card, Passport, Voter ID, etc.) and Address Proof (Copy of Aadhaar Card, Passport, Driving Licence, etc.) of the applicant and co-applicant/guarantor (if any). |
| Photographs | Two recent passport-size photographs of both applicant and co-applicant. |
| Vehicle Documents | Proforma invoice from an authorized vehicle dealer. |
| Booking Payment Proof | Receipt of the advance or booking amount paid for the vehicle. |
| Income Proof (Salaried Individuals) | Last 2 years’ ITR or Form 16, latest 3 months salary slips, and proof of additional income (if any). |
| Income Proof (Self-Employed Individuals) | Last 2 years’ ITR along with computation and balance sheet or proof of additional income (if any). |
| Bank Statements | Bank account statements for the last 6 months. And other statement of runningloan. (if any) |
| Additional Documents for NRIs | Employment contract/offer letter, latest work permit, passport copy, visa-stamped passport, local address proof (if available), employer-issued ID card, and attested Power of Attorney (POA). |
| Translation Requirement for NRIs | Employment documents in languages other than English must be translated into English and attested by the employer or Indian Embassy. |
| Loan Transfer (Balance Transfer) Cases | Sanction letter from the existing bank and loan account statement for the last 12 months. |
How to Calculate Electric Vehicle Loan EMI Calculator
Planning to buy a electric vehicle and wondering how much your monthly loan repayment will be? The Union Vehicle Loan EMI Calculator can help you to find the way easier.
Therefore online tool gives you an estimate of your monthly EMI (Equated Monthly Installment) based on the loan amount, interest rate, and repayment tenure you choose. Simply enter these details, and the calculator will instantly show your estimated monthly payment.
What is EMI?
EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay your loan. It includes:
- A portion of the loan principal.
- The applicable interest amount.
By knowing your EMI in advance, you can better plan your finances and choose a loan amount and repayment period that fits to your budget.
How Does the Union Bank Vehicle Loan EMI Calculator works?
The calculator provides a quick estimate of your monthly loan obligation, making it easier to
- Understand your repayment commitment.
- Compare different loan amounts and tenures.
- Plan your budget more effectively.
- Make informed borrowing decisions.
Note – Please note that the calculated EMI is indicative in nature. The final EMI may vary depending on factors such as applicable interest rates, RBI guidelines, bank policies, and prevailing market conditions.
Key Features of Union Electric Vehicle Loan
- Finance available for both new and pre-owned vehicles.
- Covers two-wheelers as well as four-wheelers.
- Competitive and attractive interest rates.
- Fast and hassle-free loan processing.
- Convenient digital application through:
- Official website
- Internet Banking
- Union Ease App
Note – Whether you’re buying your first bike, upgrading to a new car, or purchasing a used vehicle, Union Electric Vehicle Loan offers a convenient financing solution to help you to get on the road with confidence.
How to Apply for Electric Vehicle Loan
Process of Applying Prior Document ready to Kept
- Mobile Number along with valid E-mail Id.
- PAN & Adhar card number of the applicant.
- OVD (officially valid document) such a utility bill (in case of communication address is other than adhar card)
- If you are non salaried professional you need registration number along with license number with expiry date.
- System generated ITR in PDF format.
- Bank account statement for last 6 months where income I routed (In system generated PDF format)
Application Process
- Visit the official union bank website.
- Enter the name and mobile number, adhar card number.
- Enter the valid E-mail Id along with Pin code and city of belonging.
- Enter employment and financial details along with vehicle details.
- Enter small description about why you are buying vehicle loan.
- Once all done successfully bank fetch the data and provide valid loan offer.
- Avail the loan when your vehicle is ready for delivery.
Note – PEP, Minor, lunatic, Pradansheen, Visually challenged individuals and NRI staff are not eligible for this loan.
Electric Vehicle Loan Application Form – Required Information
For New Vehicle Purchase
| Section | Details Required |
| Vehicle Details | Name of the Vehicle Category, Vehicle Type, Manufacturer Name, Model Number/Name of Dealer or Supplier along with Address |
| Dealer/Supplier Bank Account Details | Type of Account (CD, CC, OD, or Other), Bank Name, Branch Address and IFSC Code |
| Loan Details | Cost of Vehicle, Insurance Charges, Accessories Cost, Road Tax, Registration Charges, Total On-Road Price, Proforma Invoice Number, Amount Already Paid, Margin Money Paid (if any), Loan Amount Required and Purpose of Loan |
For Used (Old) Four-Wheeler Purchase
| Section | Details Required |
| Previous Owner Details | Previous Owner’s Name, Address, Age of Vehicle, Registration Number and Engine Number |
| Existing Loan Takeover Details | Name of Existing Bank/Financial Institution, Date of Loan Sanction, Original Loan Amount, Rate of Interest (ROI), Outstanding Loan Balance, Remaining Repayment Period and Reason for Loan Takeover |
Electric Vehicle Loan – Other Important Terms
| Particulars | Details |
| Loan Amount | Minimum – No minimum limit specified. Maximum – New Electric 4-Wheeler – No upper limit.• New Electric 2-Wheeler – Up to ₹10 lakh. |
| Margin Requirement | Applicant must contribute a minimum margin money of 10%, irrespective of any subsidy received. |
| Subsidy Benefit | Any upfront subsidy received from the State or Central Government will be adjusted against the eligible loan amount. |
| Prepayment Charges | No prepayment penalty is applicable if the loan is repaid from the applicants own verifiable sources. |
| Repayment Tenure | • New Electric 4-Wheeler – Up to 84 months.• New Electric 2-Wheeler – Up to 36 months (up to 60 months under tie-up arrangements). |
| Processing Charges | Nil |
| Repayment Start Date | EMI repayment begins from the month immediately following vehicle delivery or loan disbursement. Interest for the intervening period will be recovered separately. |
| Primary Security | Hypothecation or collateral of the vehicle financed by the bank. |
| Registration Requirement | The bank’s lien must be recorded with the concerned Road Transport Authority (RTO). |
| Company Borrowers | The bank’s charge must also be registered with the Registrar of Companies (ROC). |
Guarantee Requirements (if needed)
| Borrower Category | Guarantee Requirement |
| Individual Applicants | No guarantee is generally required. However, a third-party guarantee from a person having financial means equivalent to the loan amount may be required if the credit bureau score of the applicant/co-applicant is below 700. |
| NRI Applicants | One or two local Resident Indian guarantors, acceptable to the bank and having financial means equivalent to the loan amount, are required. |
| Companies | Personal guarantee of the promoter(s) and/or director(s) is mandatory. |
| Partnership Firms | Personal guarantees from all partners are required. |
Conclusion –
An Electric Vehicle Loan makes it easier to switch to eco-friendly transportation without putting a strain or burden on your finances. With flexible repayment options, zero processing charges, no prepayment penalty, and the benefit of government subsidies being adjusted against the loan amount, applicant can enjoy a cost-effective financing solution for their electric vehicle purchase.
Whether you’re planning to buy a new electric two-wheeler or four-wheeler, understanding the loan terms, eligibility requirements, and guarantee conditions can help you to make an informed decision. By choosing the right financing option, you can drive home your electric vehicle with confidence while contributing to a greener and more sustainable future.
