SBP EV Scheme 2025 FAQs – Frequently Asked Questions on Cost Sharing Program

The SBP EV Scheme 2025 FAQs has started a new financing program called the SBP EV Scheme 2025. This initiative is managed by the State Bank of Pakistan (SBP) with support from the Ministry of Industries & Production (MoI&P) and the Engineering Development Board (EDB).

The scheme is designed to make electric bikes and electric rickshaws/loaders more affordable for the general public. By doing so, the government wants to reduce dependency on expensive petrol, promote green technologies, and provide opportunities for individuals, small businesses, women, and fleet operators.

During the year 2025-26, the program will finance 116,000 electric bikes and 3,170 electric rickshaws/loaders. The loans are provided with 0% markup (interest-free) and supported by government subsidies. This article explains the scheme in detail, along with common questions and answers to make everything clear for applicants.

Main Features of the Program 2025:

Before answering specific questions, here are the main highlights:

• Total Vehicles Financed: 116,000 bikes and 3,170 loaders
• Reserved Quotas: 25% for women, 10% for delivery riders, 30% loaders for fleet operators
• Loan Amount: PKR 200,000 for bikes, PKR 880,000 for loaders
• Subsidy Offered: PKR 50,000 for bikes, PKR 200,000 for loaders
• Repayment Time: 2 years for bikes, 3 years for loaders
• Debt-to-Equity Ratio: 80:20 (mostly covered by subsidy)
• Markup Rate: 0% (government pays full interest)
• Charges: No loan processing or early settlement fee
• Other Costs: Borrower pays for registration and insurance
• Application: Entirely digital through a centralized portal

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Why This Program Was Launched

Pakistan is facing rising fuel costs and environmental challenges. Most people depend on petrol motorcycles and rickshaws, which are expensive to maintain and harmful for the environment. This program helps solve these problems by:

1. Making eco-friendly transport affordable
2. Reducing monthly fuel expenses for families and businesses
3. Supporting delivery riders, fleet operators, and women entrepreneurs
4. Creating a path toward a cleaner, greener economy

Loan and Subsidy Structure Explained

• For electric bikes, a maximum loan of PKR 200,000 can be taken. Out of this, the government provides a subsidy of PKR 50,000.
• For rickshaws/loaders, a maximum loan of PKR 880,000 can be taken, with a subsidy of PKR 200,000.

The debt-to-equity ratio is 80:20, which means borrowers normally contribute 20% as down payment. However, since the subsidy covers most or all of this equity, in many cases borrowers will not need to pay anything upfront.

Who Can Apply EV Scheme 2025:

• Citizens of Pakistan (including AJK & Gilgit-Baltistan)
• Age Limits:
  • 18–65 years for electric bikes
  • 21–65 years for rickshaws/loaders
• Women: 25% quota reserved
• Delivery Riders: 10% quota for business purposes
• Fleet Operators: 30% quota for rickshaws/loaders

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Application Process 2025:

1. Register through the centralized digital portal created for the scheme.
2. Submit documents, including CNIC, income proof, and driving license undertaking.
3. Bank verifies credit score, debt ratio, and income.
4. Once approved, the vehicle is delivered by an OEM (Original Equipment Manufacturer) approved by EDB.
5. Insurance is taken in advance for the first year, then added to EMI for later years.
6. Registration charges must be paid by the borrower.

Insurance and Registration 2025:

Two important costs in this scheme are insurance and registration.

• Insurance: Borrower pays. First year upfront, later years included in EMIs. Protects against theft, damage, and accidents.
• Registration: Borrower pays full charges as per provincial rates. Not subsidized.

Income and Credit Checks:

Banks must ensure that borrowers can repay. They do this by:

• Checking salary slips for employees
• Looking at bank statements for self-employed people
• Using proxy income methods for daily wage earners or delivery riders

Banks also check the credit score. If you have paid past loans or bills on time, approval is easier.

Role of OEMs 2025:

The Engineering Development Board (EDB) has shortlisted vehicle models. OEMs have clear responsibilities:

• Deliver vehicles on time
• Provide after-sales service
• Ensure spare parts availability
• Offer warranties for batteries and motors

This ensures customers have long-term support after buying their EV.

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Benefits for Different Groups:

For Individuals

• Affordable ownership with no markup
• Savings on petrol expenses
• Reliable green transport

For Women

• Dedicated quota makes it easier to own a vehicle
• Safer travel for education and work
• Financial independence through affordable mobility

For Businesses & Delivery Riders

• Quota for business-use bikes
• Lower daily costs compared to petrol bikes
• More income opportunities for couriers and food delivery workers

For Fleet Operators

• Reserved quota for loaders
• Easy expansion of delivery fleets
• Lower long-term operating costs

Challenges to Keep in Mind

• Borrowers must pay insurance and registration themselves
• Stronger credit history improves approval chances
• Vehicles are only available from approved OEMs
• Delayed installments can lead to repossession

SBP EV Scheme 2025 FAQs:

Conclusion:

The SBP EV Scheme 2025 is one of the most impactful government initiatives for affordable transport in Pakistan. By offering 0% markup loans, subsidies up to PKR 200,000, and a fully digital process, it makes electric vehicles accessible to students, women, delivery riders, and fleet operators.

While borrowers must pay insurance and registration fees, the scheme still provides massive savings compared to traditional loans. With OEMs responsible for after-sales service and banks ensuring fair credit checks, this program promises to bring long-term benefits.