Commuters can access major subsidies and tailored finance for electric bikes today. India’s national portal lists generous incentives. Meanwhile, lenders offer competitive loans aimed at electric two-wheelers. Below is an overview of subsidies, loan options, and savings logic that can be of help for everyone planning to purchase an electric bike in the near future.
1. Subsidies for Electric Two-Wheelers
Subsidies reduce upfront cost and improve affordability. However, they vary by state and model. The new upcoming bikes in India may or may not be eligible.
- The central scheme under FAME II grants up to ₹15,000 per kWh for e-2Ws (capped at ~40% of vehicle cost). (FAME – Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles)
- State policies add consumer incentives. For example, some states offer up to ₹30,000 per vehicle for e-2Ws.
Key subsidy facts
- The central incentive is linked to battery size and vehicle category.
- State incentives often include road tax and registration exemptions.
- Buyers must check model eligibility.
2. Check for Bike Financing Options
Electric bike loans help bridge the gap between purchase cost and subsidy-reduced price. Here are key partner offers:
| Lender | Starting Interest Rate (p.a.) | Max Loan Amount | Max Tenure |
| Bajaj Auto Credit | 6.65% | LTV ≤ 98% | 60 months |
| Bajaj Finserv | 10.50% | ₹77 Lakhs (approx.) LTV 100% | 72 months |
| L&T Finance | 6.99% | LTV 100% | 48 months |
| Muthoot Capital Services | 0.99%* | Max ₹3 Lakhs | 48 months |
*Disclaimer: The rates of interest are subject to change.
Tips for loan planning
- Check the ratio of loan to on-road price (LTV). High LTV means less upfront payment.
- Choose tenure to balance EMIs vs total interest.
- Leverage subsidy first; then finance net cost.
- Maintain good credit and documentation for the best rates.
3. Savings & Operational Benefits
- Electric bikes have lower running costs than petrol bikes: energy costs and maintenance both decrease.
- With subsidies and low-interest loans, the monthly outgo often drops below the equivalent petrol bike EMI.
- Over tenure, users can offset a higher purchase price via savings and residual value.
Here’s how the savings work:
- The subsidy reduces your bike’s price right away.
- You pay EMI only on the reduced amount.
- Monthly costs stay low since electricity is cheaper than petrol.
- If you ride often, you recover your investment faster.
- As EV demand grows, resale values are improving too.
Over time, these savings can make an electric bike cheaper to own than a regular one.
4. How to Build a Smart Financing Strategy
- Check subsidy eligibility: central and state. Use the e‑AMRIT portal for listings.
- Calculate net cost after subsidy.
- Select loan: verify interest rate, tenure, LTV, and early-payment charges.
- Factor running-cost savings: fuel vs electric, maintenance.
- Plan exit/resale: battery replacement cost, remaining warranty.
- Compare lenders: A finance marketplace such as Bajaj Markets helps users to compare loan options and make a better choice.
5. Common Mistakes & Considerations
- Subsidy may change or phase out; check the latest policy.
- Not all new upcoming bikes in India qualify; manufacturers must comply with the scheme.
- Loan offers may advertise low starting rates but vary by credit profile.
- Battery replacement cost can add to the total cost of ownership.
- Charging infrastructure and local state benefits may vary by region.
Conclusion
India offers strong incentives and competitive finance options for electric bikes. The combination of subsidies, tailored loans, and operational savings makes EV ownership financially viable. Financial planning ensures electric bikes become smart financial choices, not just green ones.