According to the circular, the government will provide 116,000 electric motorbikes on easy loans. In addition, 3,170 electric rickshaws will also be available under the same scheme.

In the first phase, 40,000 electric bikes and 1,000 rickshaws will be distributed. In the second phase, 76,000 more electric bikes and 2,171 rickshaws will be provided.

As per the State Bank, the loan limit for an electric motorbike will be Rs200,000 with a subsidy of Rs50,000. For electric rickshaws, the loan limit will be Rs880,000 and the subsidy Rs200,000.

The circular further explained that buyers will have to pay 20 percent as down payment. Under this joint financing plan, both electric motorbikes and rickshaws will be interest-free.

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It is worth mentioning that just a few days ago, the government also introduced a housing finance scheme for low-income families.

The housing scheme offered loans ranging from Rs2,000,000 to Rs3,500,000, with a repayment period of 20 years and subsidy benefits for 10 years. These loans were made available through commercial banks, microfinance banks, and HBFC.

According to the State Bank, banks will price the housing loans at KIBOR plus 3 percent. Customers will be able to get Rs2,000,000 at 5 percent and Rs3,500,000 at 8 percent interest. No processing charges will be taken from applicants.

The circular also made it clear that only first-time home buyers would be eligible for the housing loan scheme.

The government’s new scheme shows a clear shift toward green transport and financial relief for citizens. After housing loans, electric vehicles on easy financing may reduce fuel costs and pollution. It also gives hope to low and middle-income families who struggle with rising expenses.