As Diwali 2025 lights up homes across India, another kind of spark is gaining momentum — the surge in electric vehicle (EV) loans. With the government promoting sustainable mobility and banks offering attractive green financing options, consumers are increasingly choosing eco-friendly vehicles over traditional petrol or diesel models.
From subsidies under FAME India to low-interest festive loans, this Diwali is shaping up to be a turning point for electric mobility in India.
Why EV Loans Are Rising This Diwali
Several factors are driving the surge in EV loans:
1. Attractive Subsidies & Incentives
FAME II scheme provides incentives up to ₹1.5 lakh for electric cars and ₹20,000–₹50,000 for two-wheelers.
Additional state-level subsidies in Maharashtra, Delhi, and Karnataka make EVs more affordable.
2. Festive Loan Offers
Banks and NBFCs are offering Diwali-specific low-interest loans:
Rates as low as 7–8% p.a.
Zero or reduced processing fees
Flexible EMIs over 3–7 years
3. Growing Environmental Awareness
With rising pollution and climate consciousness, buyers increasingly prefer zero-emission vehicles. EV loans make this shift financially feasible for middle-class and upper-middle-class consumers.
4. Expanding EV Infrastructure
More charging stations and battery-swapping networks reduce range anxiety, encouraging consumers to take loans and purchase EVs during the festive season.
Impact of Green Financing on Festive Sales
Green financing doesn’t just help buyers — it also boosts automaker sales:
Record Diwali bookings for EVs like Tata Nexon EV, MG ZS EV, and Ola S1 e-scooters.
Faster adoption in Tier 2 and Tier 3 cities due to affordable loan options.
Enhanced brand visibility as companies offer festive discounts and free home charging solutions.
⚡ In essence, Diwali is not just about lights and gifts — it’s lighting the path toward sustainable mobility.
Pros and Cons of Taking an EV Loan
Pros:
Low-interest green financing
Eligibility for government subsidies
Upgrade to modern, zero-emission vehicle
EMIs spread over multiple years
Cons:
Still higher upfront cost compared to ICE vehicles
Battery replacement cost (for older EVs)
Dependence on charging infrastructure in some areas
FAQs
Q1. Are there special Diwali EV loan offers?
Yes, many banks and NBFCs provide lower interest rates, zero processing fees, and flexible EMI options during the festive season.
Q2. Can subsidies be claimed along with loans?
Absolutely — FAME II and state incentives are applied upfront, reducing the principal amount of your loan.
Q3. Which EVs are popular this Diwali?
Tata Nexon EV, MG ZS EV, Hyundai Kona EV, and Ola electric scooters are seeing high festive demand.
Q4. Is taking an EV loan worth it?
Yes, if you plan to stay in the vehicle for 5+ years, want zero emissions, and can comfortably repay the EMI.
Conclusion
This Diwali, green financing is turning aspirations into action. With subsidies, low-interest loans, and increasing charging infrastructure, owning an EV is no longer a dream — it’s a practical, eco-friendly choice.
As more buyers embrace sustainable mobility, this festive season may mark a new era for electric vehicles in India — where prosperity meets responsibility. ⚡🌱
Published on : 18th October
Published by : SMITA
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