Which Banks Offer the Best e-Rickshaw Loans?

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Which Banks Offer the Best e-Rickshaw Loans?

Quite a few banks offer e-Rickshaw loans. All in all, most of these loans are similar and there is no clear answer on which banks offer the best e-rickshaw loans.

But if you go by Google searches, you can shortlist the most searched e-rickshaw loans in India. Taking into account these searches and our most popular e-rickshaw loan pages online, we can say that these banks are a few of the most popular ones when it comes to these loans.

The Most Searched For e-Rickshaw Loans

  • Bank of India Star MSME E-Rickshaw Loan Scheme
  • Punjab National Bank PNB Green Ride
  • UCO Bank Scheme for Financing e-Rickshaws Under Mudra Loan

Let’s briefly look at these loans to give you an introduction. For more information, you may click on the given links.

Bank of India Star MSME E-Rickshaw Loan Scheme

This loan helps micro category transport operators to buy e-rickshaws for commercial use. The loan can be used for funding first-time battery replacement after one year. However, you cannot use this loan for subsequent battery replacements.

Maximum loan amount offered is up to 80% of the on-road cost of the vehicle or 85% of the invoice cost, whichever is less. Bank of India sanctions this loan up to a maximum of 3 e-rickshaws per borrower.

More information on this loan is available here.

Punjab National Bank PNB Green Ride

Like the Bank of India loan, this PNB loan helps small transport operators in the MSME segment buy e-rickshaws for commercial use. The loan can also be used for funding battery replacement after one year and two years. This makes it a better loan than the Bank of India loan if you are looking at second battery replacement. The maximum amount allowed for battery replacement is up to 85% of the battery replacement cost, within the larger limit of the loan amount.

But this is a secured loan which may prove to be a challenge for eligible borrowers. The maximum loan amount is same as that for the Bank of India loan, i.e. 80% of the on-road cost of the vehicle or 85% of the invoice cost, whichever is less.

More information on this loan is available here.

UCO Bank Scheme for Financing e-Rickshaws Under Mudra Loan

Unlike the other two loans, this one is given under the Mudra Loan Scheme of the Govt of India as a need-based loan. This means the condition of maximum loan amount that applies to the Bank of India loan or the PNB loan, i.e. 80% of the on-road cost or 85% of the invoice cost, whichever is less, does not apply here.

The borrower must be a non-salaried individual and she/he must have obtained the necessary permits or clearances from the local authorities to ply the e-rickshaw. The loan has to be repaid in 5-7 years after the moratorium period of three months.

More information on this loan is available here.

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