Electric scooters are booming in India now a days. With fuel prices climbing and environmental concerns growing, an EV scooter can be a great solution. But what if you don’t want to pay the entire cost upfront? Getting a loan to finance your EV scooter can be a smart move! Let’s explore here.

Key Factors to Consider Before Taking a Loan for an EV Scooter

When planning to finance an EV scooter, it's very important to keep the following points in mind:

1. Loan Amount: Generally, banks or NBFCs can finance up to 80-100% of the scooter’s on-road price. But very few banks or NBFCs finance 100% on-road price.

2. Interest Rate: Mostly starting from 8.50%

3. Tenure Options: It can be up to 3 years

4. Processing Fees: Lenders often charge 1-2% as processing fees on the loan amount.

Eligibility Criteria for an EV Scooter Loan

Although requirements can vary by lender, these are the general eligibility criteria in India:

• Age: 18-65 years

• Income: Minimum monthly income of ₹15,000 (varies by lender)

• Employment: Salaried, self-employed, or even students with a guarantor

• CIBIL Score: A score of 700 or above is preferred for better loan offers.

Documentation Required

To apply for an EV scooter loan, keep the following documents handy:

• Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID

• Address Proof: Utility bills, Aadhaar Card, Passport

• Income Proof: Salary slips for salaried individuals, bank statements, or IT returns for self-employed

• Vehicle Details: Invoice of the EV scooter

How Much EMI Can You Expect?

Let’s break down how much you might pay per month for your EV scooter loan, based on different loan amounts and tenures:

Use online calculator here

Benefits of Financing Your EV Scooter Purchase

• Lower Upfront Cost: Loans help you to bring home your EV scooter without draining your savings.

• Special Offers for EVs: Different EV scooters and also loans are available at discounted price,s especially during the festival season.

• Government Subsidies: The government provides subsidies on EV purchases, reducing the overall cost. These subsidies often vary by state, so check with your state for additional incentives.

• Quick Processing: EV scooter loans usually have simpler and faster approval processes, allowing you to complete the purchase without delays.

Steps to Apply for an EV Scooter Loan

Follow these easy steps to apply for your loan:

1. Check Eligibility: Make sure you meet the age, income, and credit score requirements.

2. Go to the nearest EV scooter company branch

3. You will see there are many finance company executives who will be present in the showroom itself or as the showroom owner that “I want to finance” he has tie-ups with many lenders and he can help you out.

4. Gather Documents: Get your identity, income, and scooter documents ready.

5. The finance company executive will apply for your loan online

6. Then, await Approval and Disbursement

Summary

Conclusion

Taking a loan for an electric scooter can be a good idea, especially with government help in India. It allows you to save on monthly costs and fuel while helping the environment, without needing a lot of money upfront. Just remember to compare different lenders, choose an affordable monthly payment, and use any government subsidies you can get.

Frequently Asked Questions (FAQs)

1. Can I get a loan for a second-hand EV scooter?

   • Some lenders do offer loans for pre-owned EVs, though the terms may differ. You may be eligible for lower loan amounts and shorter tenures.

2. Are there any tax benefits on EV loans?

   • Yes! Under Section 80EEB, you can claim up to ₹1.5 lakh in interest paid on loans taken for electric vehicles.

3. Is a down payment required for an EV scooter loan?

   • Most lenders require a small down payment, but some may offer 100% financing. The down payment typically ranges from 10-20% of the vehicle price.

4. What subsidies are available for EV scooters in India?

   • The Indian government offers FAME-II subsidies for EV purchases, and certain states provide additional incentives like tax exemptions or registration fee waivers.