SBP unveils interest-free financing scheme for electric bikes

ISLAMABAD: In a bid to promote clean transport and energy efficiency, the State Bank of Pakistan (SBP) has rolled out an interest-free cost sharing scheme for electric bikes, rickshaws and loaders. The initiative, backed by the federal government, is aimed at making eco-friendly vehicles more accessible and supporting the shift towards greener technologies in the country’s automotive sector.

How the scheme works

Under the programme, around 116,000 e-bikes and 3,170 e-rickshaws or loaders will be financed in the current fiscal year (FY26). Buyers will not pay any interest, as the government will bear the entire markup cost. The federal government will also provide subsidies of up to Rs50,000 for each e-bike and Rs200,000 for rickshaws or loaders. Applicants will, however, need to contribute at least 20 percent equity.

Repayment terms have been set at two years for e-bikes and three years for rickshaws or loaders. Loans will be available through both conventional and Islamic banking channels.

Focus on inclusion

The scheme also sets aside quotas to make sure different groups benefit. At least 25 percent of e-bikes will go to women, while up to 10 percent will be reserved for delivery and courier riders. For three-wheelers, as much as 30 percent will be allocated for fleet operators.

The rollout will take place in two phases: 40,000 e-bikes and 1,000 e-rickshaws or loaders in the first stage, followed by the remaining vehicles in the second stage.

Who can apply

All citizens of Pakistan, including those from Gilgit-Baltistan and Azad Jammu & Kashmir, are eligible, subject to age limits. Applicants for e-bikes must be between 18 and 65 years old, while those seeking rickshaws or loaders must be at least 21. The maximum financing limit is set at Rs200,000 for two-wheelers and Rs880,000 for three-wheelers.

Fleet operators can also apply for rickshaws and loaders, though their eligibility will be decided by a Steering Committee.

Transparency measures

To keep the process transparent, the scheme will be executed through a digital lending platform. Banks will link their systems with a central portal hosted by the Ministry of Industries and Production and the Engineering Development Board (EDB). Vehicle models will be shortlisted by the EDB, while manufacturers will be responsible for timely delivery and after-sales service.