Interest-Free Scheme Launched for E-Bikes, Rickshaws, and Loaders by SBP

ISLAMABAD: The State Bank of Pakistan (SBP), with support from the federal government, has introduced an interest-free cost-sharing scheme to promote clean transport and energy efficiency. The initiative is designed to make eco-friendly vehicles more affordable and encourage a shift towards greener technologies in the country’s automotive sector.

How the Scheme Works?

In the ongoing fiscal year (FY26), financing will be provided for approximately 116,000 electric bikes and 3,170 e-rickshaws or loaders. Buyers will not pay any markup, as the federal government will cover the entire interest cost. Additionally, subsidies of up to Rs50,000 will be provided for each e-bike and Rs200,000 for rickshaws or loaders. Applicants must, however, contribute at least 20 percent equity.

Repayment will be spread over two years for e-bikes and three years for rickshaws or loaders. Both conventional and Islamic banks will extend the loans.

Focus on Inclusion

Quotas have been introduced to ensure broader participation. At least 25 percent of e-bikes will be reserved for women, while up to 10 percent will go to delivery and courier riders. For three-wheelers, as much as 30 percent will be allocated to fleet operators.

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

Who Can Apply?

All Pakistani citizens, including those from Gilgit-Baltistan and Azad Jammu & Kashmir, are eligible subject to age conditions. Applicants for e-bikes must be between 18 and 65 years old, while the minimum age for rickshaw and loader applicants is 21. The maximum financing limit is set at Rs200,000 for two-wheelers and Rs880,000 for three-wheelers.

Fleet operators are also eligible to apply for rickshaws and loaders, with their applications subject to approval by a Steering Committee.

Transparency Measures

To ensure transparency, the programme will be implemented through a digital lending platform. Banks will connect their systems with a central portal managed 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.

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