Electric Two-Wheeler Loan Guide
EV scooter and bike loans — bank concessions, PM E-DRIVE incentive, GST and battery points to check.
Updated 29 September 2026 · 8 lenders trackedWhat you need to know
Electric scooters and motorcycles are financed like other two-wheelers, but some banks price them lower — SBI gives 0.50% off, and Bank of Baroda has a dedicated bob Green Wheel scheme. The calculator below uses 11.20% (SBI’s 11.70% starting rate less the EV concession).
EV loan offers and incentives
| Lender / benefit | What you get |
|---|---|
| SBI | 0.50% rate concession on electric two-wheelers (e.g. 11.70% → 11.20%) |
| Bank of Baroda | bob Green Wheel — dedicated loan scheme for electric two-wheelers |
| PNB, Indian Bank and others | EVs financed under regular two-wheeler schemes — ask about any green concession |
| GST | 5% on electric vehicles, against 18% on petrol two-wheelers up to 350 cc |
| PM E-DRIVE scheme | Demand incentive on eligible e-two-wheelers bought from 1 Oct 2024; the per-kWh incentive was cut in FY 2025-26 — check the current status and amount on the official portal before you buy |
| State EV policies | Many states waive or cut road tax and registration fees on EVs — check your state’s policy |
The purchase incentive is usually passed on by the dealer as a lower price, which also reduces the loan you need.
What to check before financing an EV
- Is the model eligible for the PM E-DRIVE incentive, and is the scheme still open for e-two-wheelers?
- Battery warranty (years and km) and replacement cost
- Whether the battery is included in the price or leased/subscribed separately
- Charger cost and home charging feasibility
- Insurance cover for battery and charger
- Resale value — used EV prices are still uncertain
Running cost advantage
Electricity per km is usually far cheaper than petrol, and EVs need less routine maintenance. That saving can partly offset a higher purchase price — but include battery replacement in your long-term cost.
EMI calculator
Frequently asked questions
Is the PM E-DRIVE subsidy still available?
The scheme began on 1 Oct 2024 and the per-kWh incentive for e-two-wheelers was reduced in FY 2025-26. Check the Ministry of Heavy Industries portal or your dealer for the current status before you buy.
Do electric scooters need registration and a loan hypothecation?
Low-speed e-scooters that meet the exemption criteria do not need registration; all others are registered like any two-wheeler, and the lender’s hypothecation is recorded on the RC.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.