How to buy an electric vehicle on EMI using a personal loan?
Published on : July 18, 2021

With petrol and diesel prices around Rs 100 per litre, using a vehicle has become a luxury. The running costs are too high for the middle class.The rising cost of fuel is making more and more people consider the greener alternative of an electric vehicle be it a car or a two wheeler. If you are using a vehicle for your daily commute, it makes a lot of sense to switch to an electric vehicle. Let us examine the benefits of owning an electric vehicle –

  • Clean and Green alternative
  • Massive savings on fuel cost
  • Lower maintenance costs
  • Tax subsidies

Clean and Green alternative 

In today’s polluted world, where the planet is heating up everyday, switching from fossil fuels to clean energy is the right thing to do. If we plan to pass on a better planet to our future generations, we will need to make this switch now. An electric vehicle does not emit any polluting fumes like fossil fuels. If your commute is a planned one and you can complete your charging at home, it is a very viable and safe option to explore.

Massive savings on fuel cost

Compared to the petrol cost, the cost of charging an electric vehicle is much lower. For example an EV costs around 0.97 per km compared to Rs 6.24 per km for a petrol version. You can imagine how much savings this will add up to on an annual basis especially given the rapidly inflating fuel costs.

Lower maintenance costs

Compared to normal vehicles, the cost of maintaining an electric vehicle is much cheaper than a petrol/diesel vehicle. With more improved versions coming in, this difference is only expected to get wider.

Tax subsidies 

The government is supporting the cause of clean fuel and to this effect, has offered tax subsidies up to Rs 1,50,000 on the purchase of an electric vehicle. The thrust is on encouraging the purchase of electric vehicles to reduce vehicular pollution on the roads.

What are the disadvantages of an electric vehicle?

  • Higher initial cost
  • Higher depreciation
  • Not enough charging stations on longer routes
  • Drains battery while parked
  • Higher insurance

Higher initial cost

Electric vehicles are a tad more expensive than conventional petrol/diesel variants. So you will have to shell out a bigger amount, initially. Of course, a part of it is offset by the tax subsidy given by the government.

Higher Depreciation

While conventional vehicles retain 50-60% of their value, electric vehicles drop to 40% of their purchase price on resale. Buying a used electric vehicle appears to be an interesting bargain.

Not enough charging stations on longer routes

The road infrastructure around the country is yet to provide an adequate number of charging stations on every route. This might be a tricky proposition if you are driving intercity and need to charge midway. You might need to take detours to find a charging station on your route which could lead to delays.

Drains battery while parked

Though it is minimal, a parked car does drain the battery. You will have to ensure that the battery is at least 50% charged while parking the car.

Higher Insurance

Compared to conventional vehicles, the electric vehicles require double the insurance which can be a pretty penny in case of bigger vehicles.

Okay, now that we have discussed the pros and cons of owning an electric vehicle, what do you propose to do? Do you plan to buy one for your daily commute? You can save a reasonable amount on fuel costs. Are you wondering how to finance the initial cost? There is no need to worry on that count. You can easily take a personal loan and pay it off in EMIs over the agreed tenure.

A personal loan is an unsecured loan that can be taken for any end purpose. If you are an Indian citizen or resident over the age of twenty one and earning over Rs 30,000 as net monthly income, you are perfectly eligible for a personal loan.

At LoanTap, we provide personal loans ranging from Rs 50,000 – Rs 10,00,000 for tenures ranging from six months to five years. The Annual Interest rates start at 18%.

All you need to do is visit the LoanTap website and fill up a simple online application form. You will need to upload the following documents-

  • PAN Card
  • Aadhaar Card/Driving Licence/Passport for proof of residence
  • Salary slips for the last three months
  • Bank Statement of the Salary account for the last six months

The LoanTap team will quickly evaluate your application and if your credit score is decent and other loan parameters are met, your loan will be disbursed within 24-36 hours.

You have the flexibility to choose a convenient repayment option. You can also prepay the entire loan amount after you have serviced it for six months, without any prepayment penalty.

All the rates are mentioned on our website. There are no hidden fees involved.

So, what is stopping you from buying that electric vehicle? The fuel costs you save on your daily commute can easily be ploughed into the EMI for an electric vehicle. Over the life of the vehicle, you will end up saving a decent amount. Moreover, you will do your bit towards a clean and green environment as well. It is always more prudent to finance a planned expense through a personal loan for electric vehicle that is tailored to suit you than a credit card where you will end up paying 24-30% a year as interest. Be smart. Take a wise decision. Go green with a clean electric vehicle. Don’t worry about the initial outflow. We, at LoanTap, will handle it for you.