Government Announced Loan Scheme for E-Bikes and Rickshaws
Government Announced Loan Scheme for E-Bikes and Rickshaws, Citizens of Pakistan can now buy e-bikes/scooters and electric rickshaws/loaders via a subsidized and interest-free loan program, initiated by the federal government in partnership with the State Bank of Pakistan (SBP), as stated in an SBP circular.
This initiative provides financial support for the bank’s interest and down payment, enabling buyers to pay back just the principal of the loan.
Here is all the information you must have regarding this program:
Count of Accessible E-Bikes and Rickshaws
The plan encompasses:
- 116,000 e-bikes
- 3,170 electric rickshaws/loaders
It will operate in two stages:
- Stage 1: 40,000 e-bikes + 1,000 rickshaws/loaders
- Stage 2: 76,000 e-bikes + 2,170 rickshaws/loaders
This extensive plan details the government’s strategy to establish electric vehicles as a common form of transport in Pakistan.
Criteria for Eligibility
People holding a valid CNIC can apply. The age requirement for bikes ranges from 18 to 65 years. For rickshaws and loaders, the age span is between 21 and 65 years.
Individuals seeking a rickshaw license need to possess a valid rickshaw permit. Additionally, candidates must not have a history of failing to repay bank loans.
To maintain equity, 25% of the bicycles are set aside for women, a maximum of 10% for companies like delivery drivers, and 30% for rickshaws, loaders, and additional fleet providers.
Citizens need to fulfill these criteria to apply:
- Authorized CNIC (Pakistan, Gilgit-Baltistan, or Azad Kashmir)
- Age: 18 to 65 years for e-bikes; 21 to 65 years for rickshaws/loaders
- Valid driver’s license (for rickshaws/loaders)
- Current bank account
- Proof of income (pay slip, business documentation, or student identification)
- No history of bank loan defaults.
Allocated Quotas for Equitable Access:
- 25% of bicycles allocated for women
- 10% of bicycles for companies (e.g., delivery riders)
- 30% of rickshaws/loaders for operators of fleets
This guarantees that women, employees, and companies have the same chance to reap benefits.
Amount of Loan + Amount of Subsidy
The highest loan amount you are able to
The highest loan amount you can receive is contingent upon the type of vehicle:
- Up to Rs 200,000 for a motorcycle.
- Up to Rs 880,000 for a three-wheeled vehicle (rickshaw/loader)
If the price of the vehicle exceeds this limit, the borrower is responsible for covering the additional cost.
Regarding the subsidy:
- Up to Rs 50,000 for every two-wheeler
- Up to Rs 200,000 for every three-wheeler
This grant will serve as a deposit.
What does a Subsidy mean in this Program?
In this proposal, the government offers a subsidy, which is complimentary funds given to assist the purchaser. A subsidy isn’t a loan, which means repayment isn’t necessary. This money is intended to facilitate the purchase by covering some or all of the down payment, typically paid by the buyer before securing a loan.
For an electric bike, the grant may reach Rs 50,000, while for an electric rickshaw or loader, it could be as high as Rs 200,000.
How to Submit an Application
Applications will be submitted via an online portal, eliminating the need for paper forms or in-person visits.
- Banks will link to the portal for applying, verifying, and approving loans.
- The portal link has not been revealed yet, but the SBP and Ministry of Industries will provide information shortly.
Candidates need to have the following documents prepared:
- CNIC
- Account information for banking
- License to drive (if relevant)
- Earnings verification
Advantages of the Initiative
This program makes eco-friendly transportation accessible while decreasing Pakistan’s dependence on costly fuel imports. It enables women, delivery drivers, and fleet managers, while motivating individuals to choose environmentally friendly vehicles.
The initiative promotes sustainable and electric mobility in Pakistan by ensuring electric two-wheelers and three-wheelers are easily accessible.