By buld_online 
Punjab National Bank (PNB) has taken a significant step towards promoting green mobility by reducing its electric vehicle (EV) loan interest rates to 8.30%, offering a 0.05% discount compared to traditional auto loans. This move is part of the bank’s broader strategy to support India’s transition to sustainable transport solutions.
In the fiscal year 2024–25, PNB sanctioned 5,178 EV loans, reflecting strong growth in green financing. “Banking can be a powerful tool for environmental change,” said Shri Firoz Hasnain, CGM – MSME & Retail, PNB. “Our expanding green loan portfolio is aligned with India’s mission to adopt cleaner technologies and reduce carbon footprints.”
The bank is making the EV loan process more accessible through both digital channels, such as the “PNB One” app, and in-person support at its branches. Customers can easily apply via the PNB website or by visiting their nearest branch, ensuring that the loan process is convenient for all applicants.
Beyond EV loans, PNB offers a Solar Rooftop Scheme with financing options for systems up to 10 kW, starting at an interest rate of 6.50%, with a repayment tenure of up to 120 months. This is part of PNB’s suite of sustainable products aimed at reducing environmental impact and supporting cleaner energy solutions.
Comparatively, interest rates for traditional petrol and diesel vehicle loans range from 9.3% to 10.3%. For electric cars and SUVs, rates are set between 8.5% and 9.5%, while electric two-wheelers have interest rates ranging from 18% to 22%.
Many Indian banks are offering attractive vehicle loan interest rates, with slightly lower rates for electric vehicles (EVs) to encourage greener mobility. Public sector banks are leading this push with competitive offerings.
Indian Overseas Bank offers the lowest starting rates, beginning at 8.15% for EVs and 8.35% for conventional vehicles. Union Bank is close behind, offering 8.20% for EVs and 8.30% for others. Punjab National Bank (PNB) sets its rates at 8.35% for electric and 8.40% for non-electric vehicles, while Central Bank of India maintains a uniform rate of 8.35% for both.
Other public sector banks like Punjab and Sind Bank charge 8.40% for EVs and 8.50% for other vehicles. Canara Bank’s rates are 8.55% for electric and 8.65% for non-electric. Indian Bank offers loans at 8.70% for EVs and 8.75% for others.
Among lenders with higher rates, State Bank of India charges 9.10% for EV loans and 9.20% for other vehicles. HDFC Bank follows with 9.20% and 9.27%, respectively. Karnataka Bank tops the list with 9.32% for electric vehicles and 9.42% for non-electric, making it the costliest among the compared institutions.