When I decided to buy a Nexon EV, I knew it was a big investment. I wanted to finance it, so I researched Nexon EV loan options.
There were many choices, from bank loans to Tata Motors Finance and even green car loans. After looking into everything, I found the best option for my budget.
In this blog, I’ll walk you through all the electric vehicle financing options I explored.
You’ll learn about different loan options, how much down payment you need, and the advantages and disadvantages of financing a Nexon EV.
By the end, you’ll be better prepared to decide which financing plan works for you.
Loan Options for Nexon EV
You have a few solid choices for financing a Nexon EV. Each has its pros and cons, so let’s break them down.
1. Bank Loans
Bank loans are a popular option for buying a Nexon EV. I initially decided to finance my car with a Bank loan, but I later realized that I needed to look for a better option.
Because banks charge very high processing fees compared to Tata Motor Finance.
However, they offer competitive interest rates and flexible repayment terms, making it easier to manage a budget.
Here are three banks I suggest for a Nexon EV loan:
👉 State Bank of India (SBI)
👉 HDFC Bank
👉 ICICI Bank
Tip: Compare the interest rates and other fees between different banks. Some banks offer lower rates for electric vehicles, so it’s worth asking if they have any special programs.
2. Tata Motors Finance
I went to Tata Motors Finance because of their strong understanding of the EV market, tailored services, and seamless approval process.
After a few discussions, I chose Tata Motors Finance to take out a loan for my Nexon EV.
Their interest rate was lower than what I found with some banks and NBFCs, starting around 7.5%, depending on your credit score.
Another benefit was their low processing fee of around ₹2,500, which was quite reasonable compared to other options that charged more.
Here are some features I liked:
👉 Low interest rates for Tata EVs.
👉 Flexible loan tenures allowed me to choose how long I wanted to repay the loan.
👉 Special offers during promotions, such as discounts on interest or processing fees
Tip: If you’re buying a Nexon EV, Tata Motors Finance is a great option for a smooth process with competitive rates.
3. NBFCs (Non-Banking Financial Companies)
NBFCs also offer loans for the Nexon EV, and their loan approval is very quick so you don’t need to wait long for my car.
Tip: While NBFCs may approve loans faster, their interest rates might be higher than banks. Make sure to calculate the total cost over the loan period.
4. Green Car Loans
Green car loans are becoming more common as electric vehicles become more popular.
These loans come with benefits like lower interest rates and longer repayment periods.
When I looked into this option, I found they could save me a lot of interest over time.
Tip: When financing your Nexon EV, ask about green car loans to save on interest and get extra perks.
Down Payment Considerations
A down payment is important to buying a Nexon EV through financing. Here’s what I learned.
Most banks or NBFCs require a down payment of around 15-20% of the car’s price. For a Nexon EV, this can mean ₹2 to ₹3 lakhs upfront.
If you have a budget of ₹6-10 lakhs, many middle-class families can’t pay that amount outright.
By financing, I only had to cover the down payment and could spread out the rest, making the Nexon EV much more affordable.
And if you have ₹10 lakhs, instead of paying for the car in full, you can just make a down payment and potentially invest the rest of your money to earn higher returns.
Advantages of Financing a Nexon EV
1. Pay Less Upfront
Financing a Nexon EV means you don’t need to pay the full price all at once.
This was a huge relief for me, as I didn’t want to empty my savings.
The loan allowed me to spread the cost over a few years, making it easier to manage.
2. Drive a High-End EV for Less Money Down
By financing, you could afford a higher-end variant of the Nexon EV.
Instead of paying the full amount upfront, I only had to focus on the down payment and monthly instalments.
Disadvantages of Financing a Nexon EV
1. Pay More Over Time Due to Interest
One downside of financing is that you’ll pay more over time because of interest.
Even though my monthly payments were manageable, the interest added up, and the total cost of the car increased.
Tip: Try to get the lowest interest rate possible. If there’s no penalty for early repayment, you can save a lot by paying off the loan sooner.
2. Monthly Payments Limit Your Financial Freedom
While financing made it easier for me to get the car, the monthly payments meant I had less flexibility in my budget.
Every month, I have to keep money side for the loan payment, which restricts my spending.
Tip: Make sure you’re comfortable with the monthly payments before committing. If the payments feel tight, you might want to reconsider your down payment or loan term.
Final Thoughts
Financing a Nexon EV was a good option and allowed me to buy the car without paying the full amount upfront.
But there are some disadvantages, so I suggest you research your financing options for your electric vehicle.
Look into bank loans, NBFCs, Tata Motors Finance, and green car loans. Also, consider the option where you’re comfortable with the monthly payments.
For me, financing was the right choice because it fit my budget and allowed me to get the car I wanted.
But every situation is different, so take your time and choose the option that works best for you.
