The State Bank of Pakistan has announced an interest-free financing scheme for electric bikes and electric rickshaws.

Under the scheme, loans will be provided for 116,000 electric bikes and 3,170 electric rickshaws during the current fiscal year.

The loan disbursement will be carried out in two phases.

According to the State Bank, in the first phase, 40,000 electric bikes and 1,000 electric rickshaws will be distributed.

The remaining 76,000 electric bikes and 2,170 electric rickshaws will be provided in the second phase.

At least 25 per cent of the electric bikes will be reserved for women, while up to 10 per cent will be allocated for businesspersons, courier, and delivery services.

Pakistani citizens holding a valid national identity card are eligible to apply.

The age limit for electric bike applicants is 18 to 65 years, while for electric rickshaws, it is 21 to 65 years.

The government will provide a capital subsidy of up to Rs50,000 for electric bikes and up to Rs200,000 for electric rickshaws.

The loans will be interest-free for consumers, with the government covering the entire markup cost.

The maximum repayment period for electric bikes will be two years, while for electric rickshaws, it will be three years.

Borrowers will only have to pay the principal amount and insurance in monthly instalments.