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Tata Capital > Blog > Loan for Vehicle > What is Green Vehicle Rating and Why Important It Is to Know About It

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What is Green Vehicle Rating and Why Important It Is to Know About It

What is Green Vehicle Rating and Why Important It Is to Know About It

We’re all pretty much aware of the declining air quality in numerous cities of our country. But has it occurred to you how our beloved bikes and scooters are big contributors to it? With 1/3 of Indian households owning a two-wheeler, road transport is one of the highest emitters of greenhouse gases (GHGs). 

Factors such as growing per-capita income, fast-paced urbanisation, affordable two-wheeler loan interest rate, etc., have stirred an increased demand for mobility, especially the two and three-wheeler fleet. With air pollution becoming a leading environmental concern in India, there is a need to assess vehicles based on their eco-friendliness.

An Indian non-profit entity, Alliance for Energy-Efficient Economy (AEEE), has released the Green Vehicle Rating (GVR) to combat this problem. 

Let’s explore GVR in detail and why it is important to be aware of it.

What is Green Vehicle Rating?

Until recently, there was no established rating system to quantify how ‘green’ a vehicle is. Green Vehicle Rating (GVR) system is a first-time effort that aims to create a standard for measuring the environmental performance of two and three-wheelers. 

Essentially a consumer information tool, it lets you access a web-based rating system and make mindful choices while buying scooters or bikes. The central objective of GVR is to increase the demand for greener models among consumers.

Here's all you need to know about the GVR for two-wheelers.

Additional Read: Is it Necessary to Upgrade to BS6 Engine

GVR lets you evaluate the Composite Damage Costs (CDC)

You can get a total damage score for your chosen two-wheeler models on the GVR portal.

GVR provides a CDC per kilometre rating by adding the overall 'environmental costs' and 'health costs' produced from a vehicle. The figure is then added to other expenses like upfront costs, depreciation, maintenance, etc., to determine the vehicle's real cost of ownership. 

Additional Read: Things to Keep in Mind while Buying Bike for the First Time

GVR lets you compute the Real Cost of Ownership (RCO)

You can select a suitable two-wheeler by evaluating the RCO of different models and variants on the GVR website. Along with the usual specs like engine capacity, mileage, upfront costs, etc., you will be able to identify high-to-low performing vehicles based on their GHG and air pollutant emissions, fuel efficiency, global warming impacts, among others.

All the costs, including the environmental damage costs, health costs, etc., are represented in terms of rupees per kilometres. This helps you comprehend the impact of a particular variant and make an informed vehicle choice.

Over to you

On the lookout for an ideal two-wheeler? Reconsidering your purchase due to lack of funds? Rid yourself of financial woes with a two-wheeler loan from Tata Capital. With affordable interest rates starting at just 10.75%, you can get a loan amount of up to Rs. 3,00,000.

Plus, you can choose from a flexible tenure of up to 60 months. You can even use our two-wheeler loan EMI calculator to get an idea of your EMIs. With minimal documentation and quick processing, you can also get up to 100% financing on your two-wheeler purchase. Get in touch with us today!

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