How to Get a Two-wheeler Loan for Electric Scooter

Posted in Auto Loan Articles By Sajhyadri Chattopadhyay-
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How to get two wheeler loan for electric scooter

Electric vehicles are gaining global momentum, riding a wave of government support and public adoption. A two-wheeler loan for electric scooters is key in this journey, making these eco-friendly rides more accessible. This financial assistance helps make your purchase more affordable and gain the benefits of government incentives for transitioning to electric vehicles. Loans for electric scooters also align with collective efforts to combat issues like pollution and global warming. Let's try to understand how to apply for one. 

How to Apply for an Electric Scooter Loan

The following are the basic steps you have to go through when applying for an electric two-wheeler loan –  

  • Choose Your Preferred Lender:

Select a lender with a good reputation and a wide range of electric scooter loan offerings. Look for transparent and flexible terms and conditions to ensure that you are well-informed throughout the borrowing process. You can browse a wide variety of two-wheeler loans on an online platform like Bajaj Markets for this purpose.  

  • Complete the Application:

Decide your ideal loan terms with the lender and proceed to fill out the application form. Provide your name, address, contact number, etc. and make sure they are accurate. 

  • Submit Necessary Documents: 

Provide all the documents required for approval of your electric two-wheeler loan application. These usually include your ID proof and address proof. Additionally, you might also have to submit documents like bank a/c statements, salary slips, etc. as proof of income. 

Factors to Consider before Applying for a Two-wheeler Loan

Here are some key factors that you should consider before applying for a two-wheeler loan for an electric scooter – 

  • Determine Eligibility:

Thoroughly understand the eligibility criteria set by your chosen lender. This includes factors such as income, age, employment status, repayment history, creditworthiness, etc. Ensure you meet the necessary conditions for a smooth and hassle-free approval of your loan application. 

  • Check Credit Score: 

Aim for a credit score above 750 to demonstrate responsible financial management. A higher credit score boosts your creditworthiness in the eyes of lenders, so they are more willing to approve your loan application. Regularly monitor your credit score and take steps to improve it, if needed, before applying for an EV scooter loan. You can get your free credit report on Bajaj Markets here!

  • Calculate Loan EMIs:

Interest rates can vary among lenders, which impacts your monthly repayments (EMIs). Research and compare interest rates and repayment tenures to find the perfectly balanced EMI plan for you. You can use a two-wheeler loan EMI calculator to estimate your monthly instalments accurately and ensure a comfortable and sustainable repayment plan within your budget. 

  • Apply Online:

Today, most lenders offer the convenience of online applications to streamline the documentation process further. Thanks to online platforms like Bajaj Markets you can start and complete the entire process of your electric scooter loan application digitally. 

Government Incentives for Electric Vehicles

The Indian Government offers various financial incentives to make electric two-wheelers more affordable for citizens – 

1. Purchase Incentives: The government provides direct discounts on the cost of electric vehicles, making them more accessible. This upfront reduction in price encourages the adoption of eco-friendly transportation. 

2. Coupons: These offer a unique financial incentive by providing reimbursement after the initial purchase of an EV. This post-purchase benefit adds an extra layer of affordability towards electric two-wheelers. 

3. Interest Subventions: You can enjoy a discount on the interest rate when taking a loan for an electric scooter. This promotes the adoption of financial assistance for an electric scooter. 

4. Road Tax Exemption: The government waives off the road tax for electric vehicles at the time of purchase. This helps to significantly reduce the up-front cost of an electric two-wheeler. 

5. Registration Fee Exemption: The government exempts the one-time registration fee typically applicable to new vehicle purchases. This further enhances the appeal of electric vehicles for Indian citizens. 

6. Income Tax Benefits: You can claim a tax deduction of up to ₹1.5 Lakhs for the interest paid on an electric two-wheeler loan, under Section 80EEB of the Income Tax Act, 1961. 

7. Scrapping Incentives: The government offers incentives upon de-registering old petrol and diesel vehicles, to encourage the transition to cleaner and more sustainable electric vehicles. 

FAME 2 Subsidy on Electric Scooters

Initially introduced in April 2015, Phase II of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-2) Scheme was launched in April 2019. This scheme aims to support buyers of electric two-wheelers in India by providing a demand subsidy of ₹10,000 per registered electric vehicle. The subsidy limit is set at 15% of the electric vehicles' cost. The FAME 2 scheme has received an extension until 31st March 2024.  

According to the scheme's eligibility criteria, these subsidies are applicable only on two-wheelers that can go up to of 80 km on a single charge and a minimum speed of 40 km/hr. Despite a brief disruption in demand after subsidy adjustments, the government is now considering an input of additional funds to the scheme to sustain the ₹5,124 Crore outlay until the extended deadline.  

 

In September 2023, Indians purchased a total of 63,715 electric two-wheelers, marking a 2% YoY increase. This shows widespread motivation to embrace eco-friendly commuting among citizens. If you too want to be part of this wave, choose an electric two-wheeler loan from Bajaj Markets and choose from top lenders offering easy finance options for an electric scooter. With interest rates starting from 6.49% p.a. and tenures going up to 4 years, getting financial aid to buy an electric scooter is now easier than ever! 

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