Circulars/Notifications / SME, Housing and Sustainable Finance Department  

 SH&SFD Circular No. 04 of 2025
September 29, 2025

The Presidents / CEOs
All Banks

Dear Sir/ Madam,

Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders


  1. The Federal Government has introduced a ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ with a view to promote energy efficiency and transition to green technologies in automotive sector. The key features of the scheme are given below:

Sr. No

Parameter

Criteria

1

Scheme size

  • The scheme shall cover financing of approximately 116,000 e-bikes and 3,170 e-rickshaws/loaders during FY 2025-26
  • Out of this, following quota will be observed:
    1. Minimum of 25% of the total number of e-bikes for females
    2. Maximum of 10% of total e-bikes for persons intending to use e-bikes for business purposes such as courier or delivery services
    3. Maximum of 30% of rickshaws/loaders for fleet operators
  • The scheme will be implemented in two phases. In the first phase, 40,000 e-bikes and 1,000 e-rickshaw/loaders will be distributed while remaining 76000 e-bikes and 2,171 e-rickshaws/loaders will be distributed in the second phase

2

Eligibility to apply

  • All citizens of Pakistan including GB & AJK subject to the age restrictions
  • In case of rickshaws/loaders, fleet operators will also be eligible to apply in addition to common citizens
  • Eligibility criteria for fleet operators will be determined by the Steering Committee

3

Age limits

  • To be eligible for the scheme, a citizen of Pakistan shall satisfy following age criteria at the time of submission of application:
    1. In case of e-bikes: Min 18 years; max 65 years
    2. In case of rickshaws/loaders: Min 21 years; max 65 years

4

Type of Financing

Conventional and Islamic finance

5

Loan Size

  • Maximum cap shall be as under:
    1. PKR 200,000/- for two-wheeler
    2. PKR 880,000/- for three-wheeler
  • Borrower shall pay any amount above the Capital Subsidy as part of upfront equity payment while complying with debt-to-equity ratio

6

Capital Subsidy

  • Up to PKR 50,000 per two-wheeler, subject to Parameter “Debt:Equity ratio”
  • Up to PKR 200,000 per three-wheeler, subject to Parameter “Debt:Equity ratio”

7

Debt: Equity Ratio

  • 80:20 (down payment of 20%)
  • Equity portion will encompass both capital subsidy and borrower’s share. As a general principle, first, fixed capital subsidy will be applied and any remaining amount will then be paid by borrower
  • For the avoidance of doubt, if the equity portion of 20% is fully covered by capital subsidy, then borrower will not pay any amount

8

Loan Tenor

  • Max 2 years for e-bikes
  • Max 3 years for rickshaws/loaders

9

Bank’s Pricing

6-month KIBOR +2.75%

10

End User Rate

0% (Full mark-up subsidy by Federal Government)

11

EMI

EMI comprising principal + insurance component only

12

Lending Platform

  • Digital with minimal human interaction
  • Banks will integrate with digital platform for sharing information etc

13

Original Equipment Manufacturers (OEMs)/Vendors & Shortlisted Vehicle Models

  • As shortlisted by Engineering Development Board (EDB)
  • OEMs shall be responsible for timely delivery of vehicles to borrowers and for regular after sales service

14

Debt Burden Ratio

As per SBP Prudential Regulations

15

Credit Scorecard

As per respective bank’s risk appetite & credit policy

16

Income Estimation

Through salary slip or bank statement(s) or proxy methods

17

Charges on early
settlement

Nil

18

Loan Processing Charges

Nil

19

Late Payment Charges

As per Schedule of Charges (APSC) of individual banks

20

Repossession charges

APSC to be borne by borrower

21

Registration charges

To be borne by borrower

22

PMD and other checks

Federal Government to arrange for PMD (Pakistan MNP [mobile number portability] Database) Check/NADRA Verisys check at their cost

23

Insurance Payment

As per rates agreed with insurance companies (first year to be taken in advance) by individual banks, with yearly insurance cost in subsequent year(s) to be pro-rated in EMI. Rates to be negotiated with the insurance companies in coordination with Ministry of Industries & Production (MoI&P)

24

Credit Loss Guarantee (CLG)

20% Portfolio Guarantee on First Loss Basis

25

CLG Claim Stage

180 days from the date the installment was due and not paid by the customer

 

26

Mandatory
Documentation

Valid CNIC, Digital Undertaking for Driving License

  1. The banks are advised to gear up their systems and their integration with the Centralized portal of the Scheme hosted by MOIP/EDB for successful implementation of the scheme.

 

Yours sincerely,

Sd/-

(Fatima Javaid)
Senior Joint Director

 
 
 

       
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