Know the benefits of buying an electric car

3 MinsDecember 13, 2019

Can buying a car help you achieve more than fulfilling your dream or aspiration? It can also be your contribution to a cleaner environment. Concepts such as alternative energy or green fuel, which are widely discussed these days, are now closer to reality than you can imagine. Read on for more details to help you make the decision.

electric car

The Indian electric vehicle industry is still in its infancy. But with the government offering subsidies and benefits for electric vehicles and encouraging their use, demand is likely to pick up. Car manufacturers have started launching electric versions of some models. While there are obvious benefits of an electric car, there are also some challenges.

Benefits of an electric car

  • An electric car causes less air pollution as emissions from an electric vehicle are much lesser than one that uses traditional fuels
  • An electric car does not require expensive fossil fuel such as diesel/petrol to run. Due to this, the recurring cost is lower in the case of electric cars
  • It costs less to maintain an electric car because it does not require servicing as regularly as a petrol/diesel one. This is because an electric vehicle uses fewer components. But a combustible engine (one that is used in fuel/petrol car) has more moving parts, requiring regular servicing.

Things to keep in mind

  • An electric car costs more than a petrol/diesel version. This is because most of the components are currently imported. But with competitive financing options offered by banks, the issue of cost can be addressed.
  • Since charging points are still limited, ensure that your car battery is adequately charged, especially if you are planning a long drive. This problem will be eased once the infrastructure improves and more charging points are set up
  • Currently, the availability and choice of cars are limited, as compared to traditional cars.

Bank loan for electric cars

If you are keen on buying an electric car, you could avail a loan from Axis Bank. Axis Bank offers car loans for new electric cars and all variants. Initially, the loan will be available to customers in select cities, namely Delhi & NCR, Mumbai, Bangalore, Hyderabad, Pune, Jaipur, Ahmedabad, and Chennai.

It is available for both salaried and self-employed individuals and non-individuals such as partnership firm/Limited Liability Partnership/companies/Hindu Undivided Family/Trust&Societies.

Furthermore, salaried applicants can get up to 85% of the on-road price of the car, while those who are self-employed can get up to 80% of the on-road price. The tenure for the loan is up to 84 months or 7 years. On-road price includes ex-showroom price, plus road tax and insurance. Additional accessories will have to be bought by the customer directly. Use the Axis Bank Car Loan Calculator to check your EMI before purchasing the car. You can also check out the car loan interest rates.

Going ahead, as the adoption of alternate energy increases and the required infrastructure is put in place, the use of electric vehicles is likely to become more widespread.

[Also Read: Get approved for Car Loan in Minutes]

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision. Prices mentioned are indicative.