EV Loan EMI Calculator India — With 80EEB Tax Benefit
This calculator shows your EV loan EMI plus the actual monthly cost after Section 80EEB tax savings. Under Section 80EEB, individual taxpayers in the old tax regime can deduct up to ₹1.5 lakh of EV loan interest annually — reducing the effective cost of EV ownership significantly.
Standard Monthly EMI
Section 80C covers insurance, but no equivalent interest deduction exists for petrol car loans.
Section 80EEB Explained — EV Loan Tax Deduction India
Section 80EEB was introduced in the Union Budget 2019 to incentivize the adoption of electric vehicles in India. It allows individual taxpayers to claim a tax deduction on the interest paid on an EV loan.
Key Highlights of Section 80EEB:
- Maximum Deduction: You can deduct up to ₹1,50,000 per financial year from your taxable income.
- Eligibility: Only individuals can claim this. HUFs, companies, or partnerships are not eligible.
- Loan Condition: The loan must be sanctioned by a scheduled bank or an NBFC.
- Tax Regime: You must opt for the Old Tax Regime to claim this deduction. It is not available under the New Tax Regime.
- Sanction Window: Officially, the loan had to be sanctioned between April 1, 2019, and March 31, 2023. However, if your loan was sanctioned in this window, you can continue to claim the deduction until the loan is fully repaid.
If you are in the 30% tax bracket, a ₹1.5 lakh deduction directly saves you ₹45,000 in income tax annually (plus applicable cess). This effectively reduces your monthly out-of-pocket EMI cost by almost ₹3,750!
Best EV Loan Interest Rates in India 2025
| Bank / NBFC | Loan Product | Interest Rate (Est.) |
|---|---|---|
| SBI | Green Car Loan | 8.15% - 8.85% |
| HDFC Bank | Custom Fit EV Loan | 8.50% - 9.20% |
| Union Bank | Union Green Miles | 8.40% onwards |
| Bajaj Finserv | 2W/4W EV Finance | 9.50% - 11.00% |