Introduction
Electric motorbikes are shaping the future of urban transportation. Pakistan is undergoing a shift as local entrepreneurs transition to E-vehicles and international brands start to recognize the potential in the Pakistani market. Allied Bank Limited (ABL) has introduced a customized electric vehicle (EV) motorcycle loan to support the transition. This article dissects the loan into its key features and benefits, the nitty-gritty of the application process, who is eligible for it, and its current market position, grounded in a data-driven analysis in line with Google Search and Discover guidelines.
What So Great About an ABL Electric Motorcycle Loan?
Cost Efficiency
The operational expenses of electric bikes are reduced by 80% compared to petrol cars. According to Pakistan’s Alternative Energy Development Board, the average monthly fuel savings can be approximately PKR 3,000-5,000.
Environmental Impact
Zero-emission autos also result in a major reduction in carbon footprints. An average 125cc petrol bike emits ~60g CO₂/km; EVs don’t emit any.
GOVERNMENT PUSH AND POLICY EXPLORATION The literature on government push and extraction activity.
With tax reduction, concessions in import duties, and local manufacturing support as incentives for electric two-wheelers, as outlined in two-wheelers the Pakistan Electric Vehicle Policy 2020–2025, there is fertile ground for adoption.
Overview of Allied Bank EV Motorcycle Loan
Product Highlights
Loan Type: Term Financing
Objective: Only purchase electric motorcycles
Tenure: 1–3 years
Loan Quantum: As high as 80% of the invoiced price of the motocycle
Markup Rate: Approx. KIBOR + 3%–4% (floating)
Fee: Rs. 2,000 to 3,000
Vehicle Types Covered
ABL collaborates with certified EV bike manufacturers:
Jolta Electric
Metro T9 EV
MS Jaguar Electric
Even C1
The only motorcycle eligible are those assembled locally and certified.
Eligibility Criteria
| Category | Requirement |
|---|---|
| Age | 21–60 years |
| Employment | Salaried (min. 1 year), Self-employed (min. 2 years) |
| Income | PKR 25,000+ monthly (net) |
| Credit Score | 650+ (SBP e-CIB compliant) |
| Documentation | CNIC, salary slips/tax return, bank statements |
Co-Applicant Policy
Married Value Applicants may join an additional spouse as a co-borrower to achieve additional financing.
Application Process
Step-by-Step Guide
Vehicle Selection
Select a certified electric motor from an ABL-certified dealer.
Quotation Submission
“We would appreciate it if you could please provide us with a pro forma invoice to ABL Paul.
Loan Application
Fill out the form with proper proof of identification and income.
Credit Evaluation
ABL reviews your credit profile and conducts employment verification.
Loan Sanction & Disbursement
Once approved, your money is sent directly to the seller.
Time Frame
Once the loan is disbursed, it usually takes 7 to 10 working days.
ABL EV Motorcycle loans Comparative Analysis with Other Banks
| Feature | ABL | Meezan Bank | Bank Alfalah |
|---|---|---|---|
| Max Financing | 80% | 75% | 70% |
| Markup Rate | KIBOR + 3–4% | Fixed 15% | KIBOR + 5% |
| Tenure | 3 years | 2 years | 2 years |
| EV Models Covered | Jolta, Evee, Metro | Jolta | Limited |
ABL has better facilities, more financing, and greater manufacturer support, making it more appealing for EV use in cities.
Benefits of Allied Bank’s EV Motorcycle Loan
Monthly Installment Reduced: As tenures are longer and markup rates are competitive.
Advantages of Green Financing: Tax Credits or Incentives.
Larger Manufacturer Network: Allows you to tap into a growing number of EV providers.
Digital Application Support: ABL offers online status monitoring.
Risks and Considerations
Depreciation: The resale value of electric bikes is currently minimal.
Battery Replacement Expenses: Replacing it after 2–3 years may cost you over 30,000 PKR.
Infrastructure for Charging: Remains in its infancy across rural areas.
Expert Insight
As per Dr. Uzair Ahmed (Institute of Sustainable Transport, LUMS):
“For successful penetration of EV two-wheelers in Pakistan, finance penetration is a necessity. Allied Bank’s initiative acts as a ‘disincentive for upfront cost and a behavioral nudge’ for sustainable commuting.”
FAQs About ABL EV motorcycle
What percentage does Allied Bank offer on EV motorcycle loans?
It is floating, i.e KIBOR + 3–4%, which can vary.
Are self-employed people eligible to apply?
Yes, at least 2 years of verifiable income.
Is a down payment mandatory?
Yes, you have to pay at least 20% must be put down.
Do second-hand EV bikes qualify?
No. Only new, certified electric bikes from participating sellers are eligible.
Does the loan include accessories, such as chargers?
No. The finance is only for the vehicle purchase as invoiced.