EV Loan EMI Calculator India 2025-26 Electric Vehicle Loan with PM E-DRIVE Subsidy, Section 80EEB Tax Benefit & Green Car Loan Rates

Updated: 17 Jun 2026  |  PM E-DRIVE scheme 2025-26  |  Section 80EEB ₹1.5L deduction  |  SBI Green Car Loan 8.65%+

⚡ EV Benefits India 2025-26 Section 80EEB: ₹1.5L interest deduction per year PM E-DRIVE: Subsidy on select 2W & 3W EVs SBI Green Car Loan: 8.65% onwards Zero road tax in 11 states

Quick-fill popular EV models:

₹15,00,000
₹0

Add applicable subsidy (check e-amrit.niti.gov.in)

₹1,50,000
8.65%
84 months (7 yrs)

⚡ Monthly EV EMI

₹20,847

Loan: ₹13,50,000

Total Interest

₹4,11,148

Total Payable

₹17,61,148

💰 Section 80EEB Tax Saving (EV Loan Interest)

Annual interest paid (Yr 1):₹1,11,743
80EEB deduction (max ₹1.5L):₹1,11,743
Tax saved (30% bracket):₹33,523
Effective EV loan rate after tax:5.95% p.a.

⚡ Estimated Annual Fuel Savings (vs Petrol)

Petrol car (15km/L @ ₹105/L · 15K km/yr)
₹1,05,000/yr
EV (₹1.5/km electricity · 15K km/yr)
₹22,500/yr
Annual fuel saving:₹82,500/yr (~₹6,875/mo)

Fuel savings partially offset your EMI

EV Loan in India 2025-26 — PM E-DRIVE, Section 80EEB, Green Car Loan Rates & Benefits

India’s electric vehicle market is growing rapidly with government support through the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, Section 80EEB tax deduction on EV loan interest, and preferential “Green Car Loan” rates from SBI, HDFC, and ICICI at 50–100 basis points lower than petrol car loans. The total cost of ownership for EVs is often lower than equivalent petrol vehicles when factoring in fuel savings, lower maintenance, and tax benefits — even with the higher purchase price.

PM E-DRIVE Scheme 2025-26

Budget ₹10,900 Cr for FY 2025-26

2-Wheeler EVs: ₹5,000/kWh subsidy (max ₹10,000)

3-Wheeler EVs: ₹25,000 per vehicle

4-Wheeler EVs: Subsidy primarily on buses (not personal cars directly under PM E-DRIVE)

E-buses: 14,028 e-buses across cities

Check current benefits at e-amrit.niti.gov.in

Section 80EEB — EV Loan Interest Deduction

Deduction: Up to ₹1,50,000/year on interest paid on EV loan

Applicable for: Loans sanctioned between 1 Apr 2019 and 31 Mar 2023 (original); extended to ongoing loans

Eligible: Individual taxpayers (not companies/HUF)

Both old and new tax regime eligible

Covers: 2W, 3W, 4W electric vehicles

30% bracket: ₹1.5L deduction = ₹45,000 tax saving/year

Green Car Loan Rates 2025-26

SBI Green Car Loan: 8.65%–9.35%

HDFC Bank: 8.75%–10.00%

ICICI Bank: 9.00%–11.00%

Bank of Baroda: 8.70%–9.70%

Union Bank: 8.80%–9.50%

Compare: Petrol car loan rates 9.00–10.50%

EV premium/discount: 0.25–0.75% lower for EVs

3 Real EV Loan EMI Examples India 2025-26

1. Priya — Ola S1 Pro EV Scooter, ₹1.55L, SBI Green Loan 🛵

On-road price
₹1,54,999
PM E-DRIVE subsidy
₹10,000
SBI @ 8.65% / 36mo
EMI ₹4,591
Total interest
₹20,276
Priya’s petrol scooter (Honda Activa) cost her ₹3,200/month in petrol. Ola S1 Pro costs ₹400/month in electricity for same 1,500 km. Fuel saving: ₹2,800/month. Effective EMI after fuel offset: ₹4,591 − ₹2,800 = ₹1,791/month. After 3 years: loan closed, fuel saving continues for vehicle life (8–10 years). Zero road tax in Maharashtra and Rajasthan. Section 80EEB deduction: ₹20,276 total interest over 3 years — saves ~₹6,000 tax at 30% bracket. Total 3-year ownership advantage vs petrol scooter: positive.

2. Rahul — Tata Nexon EV, ₹14.99L, HDFC Green Car Loan 🚗

On-road price
₹14,99,000
Down payment
₹1,99,000
HDFC @ 8.75% / 84mo
EMI ₹18,832
80EEB Yr1 saving
₹28,500
Nexon EV vs Nexon petrol: EV on-road ₹15L vs petrol ₹13L (₹2L price premium). Fuel saving: Nexon petrol does 17km/L vs Nexon EV at ₹1.5/km. At 15,000 km/year: petrol ₹92,647/yr vs EV ₹22,500/yr = saving ₹70,147/yr (₹5,846/month). Rahul’s effective EMI after fuel offset: ₹18,832 − ₹5,846 = ₹12,986/month. Tax saving via 80EEB: ₹28,500/year (30% on ₹95,000 Yr1 interest). Maintenance: EV saves ~₹15,000/year vs petrol (no oil changes, fewer brake replacements). Total annual advantage: ₹70,147 fuel + ₹15,000 maintenance + ₹28,500 tax = ₹1,13,647/year or ₹9,470/month financial advantage.

3. Meena — E-Rickshaw (Commercial), ₹2.5L, NBFC Loan for Livelihood 🛺

E-rickshaw price
₹2,50,000
PM E-DRIVE subsidy
₹25,000
NBFC @ 14% / 36mo
EMI ₹7,740
Daily income
₹600–800/day
Commercial e-rickshaws are eligible for the PM E-DRIVE ₹25,000 subsidy (3-wheeler commercial). NBFC loans are common for informal segment (Mahindra Finance, Shriram Finance). Net loan: ₹2,25,000 at 14%. EMI ₹7,740/month for 3 years. Running cost: ₹200/day electricity vs ₹500/day CNG for equivalent auto-rickshaw. Daily saving: ₹300 = ₹9,000/month — covering nearly the full EMI. After 3-year loan closure: pure income generation with minimal running cost. E-rickshaws have transformed livelihood for many rural/peri-urban operators.

5 Expert Tips for EV Loans & Buying Electric Vehicles in India

01

Claim Section 80EEB Every Year — Many EV Buyers Miss This Deduction

Section 80EEB allows ₹1.5L deduction on EV loan interest per year — separate from 80C and home loan interest deductions. At 30% bracket: up to ₹45,000 tax saving per year. For a ₹15L EV loan at 8.75%/84 months: you pay ₹95,000+ in interest in Year 1 — deduct this fully in ITR. Available on both old and new tax regime (one of the few deductions that works on new regime too). Submit Form 16 interest certificate from bank each April and claim in ITR.

02

Check PM E-DRIVE and State EV Subsidies Before Finalising Price

Central PM E-DRIVE subsidy applies to 2-wheelers (₹5,000/kWh, max ₹10,000) and 3-wheelers (₹25,000). Delhi gives additional ₹30,000 for 2W EVs. Maharashtra gives 15% subsidy up to ₹1.5L on 4W EVs. Gujarat: up to ₹1.5L on EV cars. Check e-amrit.niti.gov.in for current central scheme and your state’s EV policy for combined benefits. These subsidies reduce effective purchase price and thus loan amount needed.

03

Factor Battery Replacement Cost — Biggest Hidden EV Expense

Battery is 40–50% of EV cost. Most EV batteries come with 8-year/160,000 km warranty. After warranty: replacement cost is significant (₹3–8L for 4W EVs; ₹30,000–70,000 for 2W). New battery chemistry (LFP/NMC batteries) and falling prices (down 80% since 2015) are reducing this risk. When evaluating total EV cost: add the depreciated battery replacement cost. For 5-year ownership: battery replacement unlikely within warranty. For 10-year ownership: factor ₹1–3L for battery. Tata’s battery-as-a-service (BaaS) model and Ola’s battery swap help mitigate this.

04

Zero Road Tax is a Real Benefit — 11+ States Offer It

States with zero road tax on EVs (as of 2025-26): Delhi, Maharashtra, Gujarat, Rajasthan, Telangana, Karnataka, Tamil Nadu, Andhra Pradesh, Kerala, Goa, Uttarakhand. Road tax on equivalent petrol car: 4–12% of vehicle value (₹60K–₹1.8L for a ₹15L car). Zero road tax on EVs saves this entire amount upfront. Factor this into your EV vs petrol total cost comparison — on a ₹15L EV in Maharashtra: saving ₹1.5L road tax = significant upfront advantage.

05

Check Home Charging Feasibility Before Buying — 80% of EV Convenience Depends on It

Home charging (Level 1/Level 2) is the primary EV charging method in India — public infrastructure is improving but still limited. If you live in an apartment: confirm building management will allow EV charger installation on your parking spot. Many housing societies have started requiring approval. 15A socket (Level 1): available universally, slow (adds 7–10 km per hour). 3.3kW wall box (Level 2): requires electrician installation, ₹8,000–15,000 for charger. If home charging is not possible: factor daily public charging cost (₹3–5/km at fast chargers) into your TCO calculation — EV fuel savings shrink significantly.

Frequently Asked Questions — EV Loan India 2025-26

What is EV loan interest rate in India 2025-26?+
SBI Green Car Loan 8.65%–9.35%; HDFC 8.75%–10%; ICICI 9%–11%; BoB 8.70%–9.70%. EVs get 0.25–0.75% lower rates than petrol car loans as green incentive.
What is Section 80EEB for EV loan?+
Up to ₹1,50,000/year deduction on EV loan interest. Works under BOTH old AND new tax regime. 30% bracket: ₹45,000/year tax saving. Available for 2W, 3W, and 4W EVs. Claim in ITR with bank’s interest certificate.
What is PM E-DRIVE subsidy on EVs?+
2-Wheeler: ₹5,000/kWh (max ~₹10,000). 3-Wheeler commercial: ₹25,000. E-buses: separate funding. Personal 4W cars: not directly under PM E-DRIVE (check state schemes). Verify at e-amrit.niti.gov.in.
Which states have zero road tax on EVs?+
Delhi, Maharashtra, Gujarat, Rajasthan, Telangana, Karnataka, Tamil Nadu, Andhra Pradesh, Kerala, Goa, Uttarakhand. Saves ₹60K–₹1.8L upfront on a ₹15L EV. Verify with state transport department.
Is 80EEB available under new tax regime?+
Yes — one of very few deductions available under the new tax regime. New regime EV buyers can still save up to ₹45,000/year via 80EEB (at 30% bracket). This is a significant advantage vs most other deductions.
EV vs petrol car — is EV financially better?+
For 15K+ km/year with home charging: yes — EV saves ₹60–80K/year in fuel + ₹15K maintenance + up to ₹45K tax = ₹1.2L+/year. Breakeven vs higher EV purchase price: typically 3–4 years. 5-year TCO: EV is equal or lower than petrol.
Tata Nexon EV loan EMI at SBI?+
₹13.49L loan (₹14.99L price − ₹1.5L down) at 8.65% for 84 months: EMI ≈ ₹20,847/month. 80EEB Year 1 tax saving: ~₹28,500. Fuel saving vs petrol Nexon: ₹70,000/year (₹5,833/month).
What is battery replacement cost for EVs in India?+
4W EV battery: ₹3–8L (8yr/160K km warranty standard). 2W EV battery: ₹30,000–70,000 (3–5yr warranty). Prices falling 10–15%/year. For 5-year ownership: unlikely to replace within warranty. Factor for 10-year ownership. Tata’s BaaS and Ola’s swap model reduce this risk.
How to apply for SBI Green Car Loan for EV?+
YONO app or SBI branch → Loans → Green Car Loan. Documents: PAN, Aadhaar, salary slip (3mo), bank statement (6mo), EV invoice. Processing: 3–7 days. Interest certificate for 80EEB available on YONO annually.
Ola S1 Pro loan EMI?+
₹1,54,999 − ₹10,000 PM E-DRIVE = ₹1,44,999 effective. At 8.65%/36 months: EMI ≈ ₹4,591/month. Fuel saving vs petrol scooter: ₹2,500–3,000/month. Net cost after fuel offset: ~₹1,600–2,100/month.
Is FAME II still active?+
FAME II ended 31 March 2024. Replaced by PM E-DRIVE scheme (2024 onwards, ₹10,900 Cr budget). PM E-DRIVE continues 2W and 3W commercial subsidies. Check e-amrit.niti.gov.in for current scheme.
Can I get EV loan with zero down payment?+
Some banks offer 90–95% financing; some dealers offer 100% via promotional tie-ups for CIBIL 750+. However: lower down payment = higher EMI. Even 10% down payment significantly reduces interest outgo.
What is EV resale value in India?+
3-year Nexon EV: ~50–60% resale vs 65–70% for petrol variant. Gap narrowing as EV acceptance grows. Plan 5–7 year ownership to maximise TCO advantage. Tata’s battery health certificate helps resale value.
How to calculate EV running cost per km?+
EV cost/km = (Electricity rate × kWh/100km) ÷ 100. Nexon EV at ₹8/unit home charging: 17.4 kWh × ₹8 ÷ 100 = ₹1.39/km. Petrol Nexon: ₹105/14km = ₹7.5/km. EV is 5× cheaper at home charging.
What is EV insurance cost in India?+
4W EV: ₹30,000–60,000/year comprehensive. Slightly higher than petrol due to higher IDV. Battery cover add-on recommended. Zero depreciation recommended for new EVs. Available: Acko, Digit, HDFC Ergo with EV-specific riders.
What is maximum EV loan tenure in India?+
84 months (7 years) for 4W EVs. 2W: 36–60 months. 3W commercial: 24–48 months. Longer tenure = lower EMI + more years of 80EEB benefit. Don’t rush repayment if 80EEB deduction is active.
Can businesses claim EV tax benefits?+
Yes: 5% GST (vs 28%+cess petrol) — ITC claimable. 40% accelerated depreciation. Loan interest deductible as business expense. 80EEB: individual only (not companies). Consult CA for company EV fleet tax treatment.
Should I buy EV now or wait?+
Buy now if: 15K+ km/year, home charging available, proven model (Nexon EV/Ola S1). Wait if: <8K km/year, no home charging, want more range/price drop. Fuel savings and 80EEB are immediate — delaying means leaving money on the table if you qualify today.
MG ZS EV loan EMI at SBI?+
₹20.99L loan at 8.65%/84 months: EMI ≈ ₹32,446/month. Full 80EEB deduction (₹1.5L) applicable from Year 1 — saves ₹45,000/year (30% bracket). Effective rate after tax: ~5.9%.
What is EV charging infrastructure in India 2025-26?+
20,000+ public stations; major cities have reasonable fast charger coverage. NHAI chargers every 25km on national highways (expanding). Home charging: most practical (15A socket = 7–10km/hr; wall box = 50–80km/hr). Tata Power, HPCL, ChargeGrid, Ather Grid for station locations.
What documents are needed for EV loan?+
Standard car loan docs: PAN + Aadhaar + income proof + bank statement (6mo) + dealer invoice. Mention battery capacity and charging spec in invoice. FAME/E-DRIVE subsidy certificate from dealer if applicable. No extra EV-specific documents required by most banks.

Related Calculators

🏦
EMI Calculator
Home/Personal/Car/Business
 🚙
Used Car Loan EMI
Pre-owned car LTV
 🛵
Two-Wheeler Loan EMI
Bike & scooter loans
 📅
Loan Amortisation
Month-by-month breakdown
 💼
Salary Hike Calculator
New CTC & take-home
 📋
Budget 2026 Tax
New slabs vs FY 2025-26

Disclaimer — EV Loan EMI Calculator (CalcWise Finance)

EV prices, subsidy amounts, and interest rates are indicative for FY 2025-26 and subject to change. PM E-DRIVE subsidy eligibility varies by vehicle model and state. Section 80EEB deduction rules: consult a CA for your specific situation. Fuel savings estimates assume typical usage and current electricity/petrol prices. CalcWise Finance is not affiliated with any EV manufacturer or bank.

Regulatory authorities: Vehicle financing regulated by Reserve Bank of India — rbi.org.in. Consumer grievance: RBI CMS — cms.rbi.org.in. EV policy and subsidies: e-Amrit — NITI Aayog. Last Updated: 17 Jun 2026.