Government Subsidies on Two-Wheeler Loans

Purchasing a two-wheeler remains one of the most convenient and cost-effective choices for regular commuters. If you are planning to buy a bike but are concerned about making the full payment upfront, you can consider a two-wheeler loan with manageable terms. 

While banks and NBFCs offer such loans, government subsidies can help reduce the overall expense. Several government subsidies on two-wheelers in India can lower your purchase cost. For example, the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) scheme provides significant benefits to motorcycle owners.

Before applying, you need to know the details of this and other schemes to determine which one is suitable for your needs.

These government schemes aim to promote electric vehicles at an affordable price. One such scheme applies across the entire country. Refer to the details below to understand it better:

This scheme encourages the use of electric and hybrid vehicles across the country through financial incentives. The Ministry of Heavy Industries and Public Enterprises launched it under the National Electric Mobility Mission Plan.

It provides subsidies to electric vehicle manufacturers and infrastructure providers to support the adoption of cleaner mobility solutions.

The FAME India Scheme functions in two phases:

• Phase I: Launched in 2015, this phase continued until 31st March 2019

• Phase II: Started in April 2019 and was active until 31st March 2024

The government is currently working on the third phase of the scheme. However, the exact timeline remains unclear. The scheme aims to promote electric mobility and reduce pollution across the country. Its key objectives include:

• Encouraging the production and adoption of electric and hybrid vehicles

• Reducing vehicular emissions and dependence on fossil fuels

• Promoting affordable, eco-friendly public transport

• Establishing a nationwide electric vehicle charging infrastructure

• Supporting research and development in e-mobility

• Converting 30% of total transportation to electric vehicles by 2030

• Offering incentives to both manufacturers and consumers

States offer various subsidies and incentives, which you can often combine with central government benefits. The table below highlights some notable schemes:

The Government of India offers these subsidies to support two-wheeler purchases. These initiatives aim to boost the use of electric vehicles by making them more affordable and accessible. Here are the key benefits of these schemes: 

• Lower Cost: FAME incentives enable manufacturers to reduce electric bike prices and allow buyers to save money

• Price Gap: State subsidies further lower costs, making electric bikes as affordable as traditional options

• Promote EVs as Alternatives: Central and State governments encourage buyers to choose electric vehicles for long-term savings and a cleaner environment

The exact documents for a two-wheeler loan depend on the scheme you select. However, here are the basic documents you need to prepare beforehand:

• Proof of Identity: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License

• Proof of Address: Utility bill, Rent agreement, Aadhaar Card, or Passport

• Proof of Income: Salary slips, bank statements, or income tax returns (especially for loans)

• Vehicle Purchase Documents: Invoice or receipt of the vehicle, Registration Certificate (RC)

• Passport-size Photographs: Recent photos of the applicant

These government bike schemes offer a significant solution for Indian two-wheeler buyers. These initiatives make bike ownership more accessible and affordable, particularly for electric vehicles. By combining national programmes such as FAME II with state-specific subsidies, you have several options to choose from.