What is reducing-balance EMI?

Each month's interest is calculated on the outstanding principal, not the original amount. This is the RBI-mandated method for all Indian bank loans - your interest reduces as you repay.

How does Section 80EEB work?

EV loan borrowers can deduct up to ₹1.5 lakh of interest paid per year from taxable income under Section 80EEB of the Income Tax Act. Verify current validity with a tax advisor.

Which bank has the lowest EV loan rate?

Bank of India currently offers the lowest rate at 8.45% p.a. for EV loans. PSU banks generally offer better rates than private banks for green vehicles.

Can I prepay my EV loan?

Yes. Most banks allow part-prepayment after 6–12 EMIs with minimal or nil charges. Full prepayment is allowed; floating-rate loans cannot be charged a prepayment penalty by RBI mandate.

What documents are needed?

Identity proof (Aadhaar/PAN), address proof, last 3 months salary slips or 2 years ITR (self-employed), last 6 months bank statements, and the car proforma invoice.

India's EV Loan & EMI Calculator

Enter loan principal: Enter the on-road price minus your down payment. For a ₹15 lakh car with ₹3 lakh down, enter ₹12 lakh.

Select your lender: Choose from India's active EV lenders. Interest rates vary from 7.9% to 12.5% per annum.

Choose tenure: Select 24 to 84 months. Longer tenure lowers monthly EMI but increases total interest paid.

Review the breakdown: GaadiMate shows monthly EMI, total interest cost, and your Section 80EEB income tax benefit of up to ₹1.5 lakh.