ECC approves loan scheme to provide E-bikes, E-rickshaws on 0% markup

The Economic Coordination Committee (ECC) on Thursday approved a loan scheme to provide E-Bikes/E-Rickshaws on zero percent markup and repayment in three years, read a statement released by the Ministry of Finance.

Federal Minister for Finance Ishaq Dar presided over the meeting of the ECC of the Cabinet. During the meeting, the Ministry of Industries and Production submitted a summary regarding financing facilities for electric bikes (E-bikes) and E-Rickshaws.

As per the statement, the ministry presented details on the viability, and demand of electric bikes and incentive structure for potential users to make electric bikes affordable.

“In order to create a quick and sustainable demand for E-Bikes/Rickshaws in the country, the ECC after discussion approved Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) model for E-Bikes/E-Rickshaws.

“Under the scheme, a clean loan of up to Rs0.5 million will be given under Tier-I (T1) of PMYB&ALS at 0% markup rate for repayment in three years. This facility will be available for up to 15,000 E-Bikes/Rickshaws in the current financial year,” read the statement.

The Ministry of Finance said the modalities of the scheme will be worked out by the Ministry of Industries and Production in coordination with PMYB&ALS.

Courtesy: Business Recorder