Exploring Special Loan Offers for Electric Two-Wheelers

Exploring Special Loan Offers for Electric Two-Wheelers

Loans by Team Drivio | Jan 23, 2024

Before purchasing electric motorcycles, check out special loan deals from top lenders. Also, look out for subsidies from the government and special deals in your state while financing electric motorcycles. Make the most of discounts, subsidies, tax savings, and low-interest rates from these special deals on two-wheeler loans. 

Are you thinking of financing electric motorcycles through a bank or NBFC? At a time when technological innovation and environmental consciousness drive your preferences for two-wheelers, it’s wise to look out for subsidies, discounts, or special deals on your motorcycle loan. On exploring special loan offers for electric two-wheelers, you can make the most of these perks, making your purchase an affordable one.

In this guide, we will take you through some special loan deals designed to support eco-friendly commuting. As an informed buyer, you can apply for cost-effective loans that can significantly take off the pressure to pay your EMIs.

Why Is The Demand For Electric Two-Wheelers Rising In India?

In India, the automotive industry is undergoing a transformation with the surging demand for electric bikes. Growing environmental consciousness among consumers, special loan deals on EVs, advancements in battery technology, and an upgraded charging infrastructure are the key factors driving this demand.

Beyond a mere trend, electric two-wheelers have positioned them as a prime force shaping the future of sustainable transportation.

 Cost savings

Buyers have realized that buying EVs reduces the carbon footprint on the environment. Besides, eco-friendly vehicles reduce the cost of fuel, making your rides cheaper. Considering lower operational costs to lower air pollution and minimal maintenance, electric bikes prove to be cost-efficient.

 Reducing carbon emissions

 Electric bikes go a long way in achieving environmental sustainability and reduce carbon emissions. Compared to their conventional counterparts, electric bikes reduce carbon footprint and address challenges like global climate change.

Exploring Special Loan Offers Electric Two-Wheelers

The shift towards green energy in India is gaining momentum. Advancements in the EV market are driving this shift. This offers a cost-effective and sustainable way to commute in cities and suburban areas. Many banks and NBFCs offer special loan deals on the purchase of EVs, making your purchase affordable. Moreover, the Indian government has announced certain subsidies for electric bike owners, further making your purchase cost-effective.

Initiatives from the government

  • FAME-II Scheme: The FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme provides electric bike owners with attractive incentives. On availing this benefit, you can get direct discounts when you purchase electric motorcycles or scooters. The amount may vary based on the manufacturer and the state of your residence. 
  • Subsidy on interest: The government also offers interest subvention on EV loans, which significantly reduces your EMIs. Over the loan tenure, you can make substantial savings with these subsidies.
  • Other perks: Some states in India offer additional perks while financing electric motorcycles. These include registration fee waivers and road tax exemption, making the deal cost-effective for owners.

Two-wheeler loans from banks and NBFCs

  • Competitive interest rates: Leading banks and NBFCs offer special loan deals for financing electric two-wheelers. The interest rates start from as low as 9% in some banks.
  • Longer repayment tenures: To make financing electric motorcycles easy, reputed creditors offer flexible repayment terms. You can take up to 5 years to clear your loan, making your EMI more manageable.
  • Minimal down payment: While exploring special loan offers electric two-wheelers, you might come across lenders requiring minimal down payment. Some banks may not require you to pay any down payment, which does away with the burden of a sizable upfront payment.
  • Quick approval and disbursements: The streamlined loan approval and disbursement process through digital platforms ensures that you can fund your bike instantly. 

 Collaborations with the manufacturer

  Some electric bike manufacturers have partnered with financial institutions to provide customized loan packages with exclusive benefits. Also, owners should keep an eye out for special loan deals during festive seasons. This can further add to your savings.

Special loan deals

 Special loan deals may also include state-level incentives. Different states in India have implemented their own EV policies. These include a wide range of benefits for owners, including:

  • Additional subsidies on purchase prices
  • SGST reimbursement
  • Road tax and registration fee waiver
  • Subsidies for setting up charging infrastructure

No-entry restrictions

 Some states allow electric two-wheelers to access areas where conventional vehicles are restricted, such as congested city centers or during odd-even schemes.

Parking preferences

In many cities in India, EVs benefit from the availability of designated parking spots. This offers convenience as well as encouragement to owners.

Tax benefits

 Under Section 80EEB of the Income Tax Act, electric bike owners are eligible to claim an annual deduction of up to INR 1.5 lakh on the interest they pay on EV loans. Interestingly, the GST on electric vehicles was reduced from 12% to 5% in 2019. This made electric bikes in India even more affordable. Some states have also established green mobility funds to support the development of EV infrastructure and encourage adoption.

Wrapping Up

Financing electric motorcycles is easier than you think, considering some models might come with a higher ticket price. A host of advantages await you as you brace up to purchase these motorcycles. Beyond embracing eco-friendly commuting, you can save on your interest rates, enjoy discounts, and capitalize on government subsidies while purchasing two-wheelers. After exploring special loan offers electric two-wheelers, you can choose the right model and proceed with the deal.