EV Loans for Two-Wheelers: What You Should Know

EV Loans for Two-Wheelers: What You Should Know
1. What Are EV Loans for Two-Wheelers?
These are specially designed loans to help buyers purchase electric scooters, motorcycles, and mopeds. The loan amount typically covers the vehicle price minus any subsidies.

2. Who Offers These Loans?
Banks, non-banking financial companies (NBFCs), and some vehicle manufacturers offer two-wheeler EV loans with competitive interest rates and flexible repayment options.

3. Loan Amount & Tenure
Loan amounts generally range from ₹20,000 to ₹2 lakh depending on the vehicle cost.

Tenure options usually range from 6 months to 3 years, sometimes up to 5 years.

4. Interest Rates
Interest rates are often lower than personal loans, typically between 9% and 15% per annum, sometimes influenced by government schemes.

5. Government Subsidies and Benefits
Many loans integrate government subsidies like those under the FAME scheme, reducing the loan amount and interest burden.

6. Eligibility Criteria
Age between 21 and 60 years

Stable income or employment proof

Good credit history

7. Documents Required
Identity proof (Aadhar card, PAN card, etc.)

Address proof

Income proof (salary slips, bank statements)

Vehicle quotation

8. Advantages of Two-Wheeler EV Loans
Easier ownership of eco-friendly transport

Lower upfront cost with financing

Helps spread payments over time

9. Things to Watch Out For
Check for hidden processing fees

Verify prepayment and foreclosure charges

Understand penalty for late payments

10. How to Apply
Compare loan offers online or at dealerships

Fill out application with required documents

Await approval and loan disbursal

Complete vehicle purchase