To boost the ailing electric vehicles segment, the country's largest state-run lender SBI on Monday extended a discounted loan offer to buyers of these vehicles i.e. priced 20 basis points lower in comparison to its current auto loan interest rates.
As per industry data, despite several policy initiatives to boost the usage of electric vehicles as a mode of transport, of the car industry that accounted for 3.6 million sales in FY 19, the segment netted just 1000 units on an annual basis and combining two-wheelers the industry constitute just over 54000 units.
The poor sales in the segment are largely being attributed to lack of policy clarity as also government's disregard when it comes to planning the basic infrastructure for the segment.
"We believe SBI green car loan (electric vehicle) scheme would act as a change agent in the auto loan segment and encourage customers to switch to electric vehicles which can improve overall air quality and lower carbon emissions," managing director, retail and digital banking, PK Gupta said.
For the first six months of the launch of the scheme, there shall be no processing fee for a loan for electric vehicle purchase. Further, the strategic addition to the bank's auto loan segment will have the longest repayment tenure of up to eight years.