By Commerce Reporter
LAHORE, (October 1) – The federal government has introduced a subsidized or ‘Cost Sharing Scheme for Electric Bikes and Rickshaws/Loaders’ without any markup to promote energy efficiency and transition to green technologies in the automotive sector.
In this regard, State Bank of Pakistan (SBP) has directed commercial banks to gear up their systems and their integration with the Centralized portal of the Scheme hosted by the Ministry of Industries and Production and Engineering Development Board for the successful implementation of the scheme.
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Key Features of the Scheme
Individuals can have a financing facility from banks up to Rs. 200,000 for buying an e-bike and repay the amount in 2 years.
Individuals can have a financing facility from banks up to Rs 880,000 for buying a Rickshaw and a Loader and repay the amount in 3 years.
A beneficiary has to pay a little or no down-payment depending upon the price of the two or three wheelers.
The beneficiary shall pay any amount above the capital subsidy as part of upfront equity payment while complying with debt-to-equity ratio, which is allowed up to Rs 50,000 per two-wheeler and up to Rs 200,000 per three-wheeler, subject to parameter, according to the circular issued by the State Bank of Pakistan.
The 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
If the price of e-bike is nearly Rs. 250,000, the equity portion of 20% will be fully covered by capital subsidy, then borrower will not pay any amount.
The customer will not pay any markup on the repayment amount, however, there can be late payment surcharge on the non-payment as per schedule of charges (APSC) of individual banks.
A beneficiary should have a valid CNIC and digital undertaking for a driving license to avail of this scheme. He or she should also submit a salary slip or bank statement(s) or proxy methods.
The pricing for the banks has been set at 6-month KIBOR +2.75%. As far as insurance is concerned, banks will settle with insurance companies, which can be negotiated in coordination with Ministry of Industries & Production (MoI&P).
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