How to Apply for an EV Loan in India (2025): A Simple 5-Step Guide

Making the switch to an electric vehicle is an exciting prospect, but navigating the loan application process can often feel overwhelming. Whether you're eyeing a new electric scooter, a family-friendly EV car, or a commercial three-wheeler, securing the right financing is key. This simple, step-by-step guide will demystify the process and walk you through everything you need to know to get your EV loan approved.

Step 1: Choose Your EV & Determine Your Budget.

The first step is to decide on the specific electric vehicle you want. Your choice of an EV scooter like the Ola S1, a car like the Tata Tiago EV, or a commercial vehicle will determine the on-road price and the loan amount you need. Once you've decided, obtain a pro forma invoice from the dealer. 

Step 2: Check Your Eligibility & Gather Your Documents.

Lenders have a standard set of eligibility criteria. Before applying, ensure you meet them:

• Age: Typically between 21 and 65 years. 
• Credit Score: A score of 650 or higher is generally preferred, with higher scores unlocking better interest rates.
• Minimum Income: This varies, but a minimum monthly income of around ₹15,000 to ₹25,000 is a common benchmark.
• Required Documents: Have digital or physical copies of your PAN card, Aadhaar card (for address proof), latest salary slips or ITR filings (for income proof), and bank statements for the last 3-6 months.

Step 3: Compare Your Lending Options (Banks vs. Fintechs)

You have two primary options: traditional banks (like SBI, HDFC) or specialised EV fintech lenders (like Turno, Revfin). Banks may offer lower interest rates if you have a high credit score, but their process can be slower. Fintechs often provide faster, fully digital approvals and may have more flexible eligibility criteria. 

Step 4: The Application Process

• The Fintech Way (Fast & Digital): Most fintech lenders offer a seamless digital process. Using a platform like Turno as an example, the steps are typically: 1. Apply online. 2. Receive a call back within minutes. 3. Share your KYC documents digitally. 4. Get your loan disbursed in as little as 48 hours.

   

• The Traditional Bank Way: Applying with a bank often involves visiting the nearest branch, filling out physical application forms, and submitting photocopies of your documents. 

   

Step 5: Maximise Your Savings

Once your loan is approved, don't forget to maximise your savings. Inquire about any available exchange bonuses for your old vehicle and check for applicable state-level subsidies on road tax or registration fees. Combining these benefits with your loan can significantly reduce the total amount you need to finance.

Conclusion: Securing an EV loan is more accessible than ever. By following these steps, you can navigate the process with confidence.

Your Quick Checklist:

• Finalise EV Model & Budget,
• Check Eligibility
• Gather Documents
• Compare Lenders
• Apply & Submit
• Ask about Subsidies.
  
  Now that you know the steps, get the detailed lender information you need from our Ultimate Guide to EV Loans in India.