Electric bikes and rickshaw/loaders scheme: eligibility, financing and other details

ISLAMABAD: The federal government has introduced a ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ aimed at making green transport more accessible and affordable across Pakistan.

Scheme Size:

According to details released by the State Bank of Pakistan (SBP), under the scheme, around 116,000 electric-bikes and 3,170 e-rickshaws/loaders will be financed in two phases.

In the first phase, 40,000 electric-bikes and 1,000 e-rickshaws/loaders will be distributed, followed by 76,000 e-bikes and 2,171 e-rickshaws/loaders in the second phase.

At least 25 percent of the total e-bikes will be reserved for women, up to 10 percent for business users such as couriers and delivery riders, while a maximum of 30 percent of rickshaws/loaders will go to fleet operators.

Read Also: Sindh to provide women industrial workers with free electric motorbikes

Eligibility:
All Pakistani citizens, including those from Gilgit-Baltistan and Azad Jammu & Kashmir, are eligible, with age limits set at 18-65 years for e-bikes and 21-65 years for rickshaws/loaders.

Fleet operators can also apply for rickshaw/loader financing, with specific eligibility criteria to be set by a steering committee.

Financing:

Financing will be available through both conventional and Islamic banking channels, with loans capped at Rs.200,000 for e-bikes and Rs.880,000 for rickshaws/loaders. Borrower have to pay any amount above the Capital Subsidy as part of upfront equity payment while complying with debt-to-equity ratio.

A capital subsidy of up to Rs50,000 per two-wheeler and Rs200,000 per three-wheeler will be provided, subject to an 80:20 debt-to-equity ratio, where the subsidy will first be adjusted against the down payment. If the 20 percent equity portion is fully covered by subsidy, no additional amount will be required from the borrower.

Loan Tenure:

Loan tenures will extend up to two years for e-bikes and three years for rickshaws/loaders, with banks charging six-month KIBOR plus 2.75 percent, though the end-user rate will remain at zero as the federal government will bear the full markup subsidy.

Installments will include only principal and insurance costs. The scheme will operate digitally with minimal human interaction, and banks will integrate with the platform for processing.

Banks will integrate their systems with a centralized portal managed by the Ministry of Industries & Production and the Engineering Development Board.

Other Features:
Only vehicle models shortlisted by the EDB will be eligible. Borrowers will be required to provide a valid CNIC and a digital undertaking for a driving license.

The government will bear the costs for background checks via National Database Registration Authority (NADRA) and the mobile number portability database. Insurance rates will be centrally negotiated, with the first year’s premium paid upfront.

Other conditions include compliance with SBP prudential regulations, credit checks, and income verification through salary slips, bank statements, or proxy methods.

The scheme will not impose any loan processing charges, early settlement charges, or repossession fees, while late payment charges will follow individual banks’ schedules.

Credit Loss Guarantee (CLG):

Borrowers will bear registration and insurance costs, with the first-year insurance to be taken in advance. A 20 percent portfolio guarantee will be provided by the government on a first-loss basis, with claims eligible after 180 days of default. Mandatory documentation will include a valid CNIC and a digital undertaking for driving license verification.