MP Government Launches E-Rickshaw Loan Scheme 2025 Up to Rs 4 Lakh

By Mahender Singh | Published Date : September 24, 2025

Madhya Pradesh launches Chief Minister E-Rickshaw Scheme 2025, offering unsecured loans up to ₹4 lakh with interest paid by the government.

Bhopal, India – Electric 3-wheelers are becoming an increasingly popular source of employment in both rural and urban India. To support this growing trend, the Madhya Pradesh government has introduced the Chief Minister E-Rickshaw Scheme 2025, which offers loans of up to Rs 4 lakh without requiring any collateral. The best part of the scheme is that the government will cover all the interest, so beneficiaries only need to repay the actual loan amount, making it easier for them to start their own e-rickshaw business.

No Collateral or Guarantee Required

Table Of Contents

1. No Collateral or Guarantee Required

2. First Phase to Benefit 3,500 Individuals

3. Loan Features and Interest Subsidy

4. Special Benefits for Urban Women

5. Required Documents

6. Application Process

The scheme targets unemployed youth, women entrepreneurs, and economically weaker sections, making it easier for them to own an electric 3-wheeler without any financial burden. There is no requirement for collateral or guarantee, ensuring a wider reach. Beneficiaries can purchase a brand-new Super Auto electric 3-wheeler or retrofit their existing petrol/diesel auto rickshaws into electric ones.

First Phase to Benefit 3,500 Individuals

In the first phase, 3,500 eligible individuals will receive benefits. The scheme will be implemented until 2027-28, providing both employment opportunities and an environmentally friendly transport option. Check trucks.

Loan Features and Interest Subsidy

Beneficiaries can avail interest-free personal loans of up to Rs 4 lakh. Additionally, the central government provides 8% interest subsidy while the state government contributes 5%, directly transferring the benefits to bank accounts via DBT. This ensures maximum participation, as no collateral is required.

Special Benefits for Urban Women

Urban women aged 18 to 55, especially those already running auto rickshaws, are given priority under the scheme. Only residents of urban areas with a valid motor vehicle license are eligible to apply.

Required Documents

The buyers should have the following documents:

• Aadhaar Card
• PAN Card
• Driving License
• Bank Passbook
• Passport-sized Photo
• Income Certificate/BPL card (if applicable).

Application Process

Applications are available free of cost. A task force in each district, including bank representatives and scheme officials, will process applications. All applications will be processed within 30 days, and loans will be disbursed within 15 days. Banks will not require collateral.

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Frequently Asked Questions on Electric 3-wheelers

Q1. What is an electric 3-wheeler?

Ans. An electric 3-wheeler is a three-wheeled vehicle powered by an electric motor instead of petrol or diesel. It’s commonly used for last-mile transport and small-scale deliveries in cities and towns.

Q2. Who can buy an electric 3-wheeler?

Ans. Anyone with a valid driving license and meeting eligibility criteria can buy an electric 3-wheeler. Many schemes, like the Chief Minister E-Rickshaw Scheme, make it easier for unemployed youth, women, and small business owners to own one.

Q3. How far can an electric 3-wheeler travel on a single charge?

Ans. Most electric 3-wheelers can cover 150–160 km on a single charge, depending on the load, battery capacity, and driving conditions.

Q4. Is maintenance expensive for electric 3-wheelers?

Ans. No, electric 3-wheelers generally have lower maintenance costs than petrol or diesel vehicles because they have fewer moving parts and no fuel system to maintain.

Q5. Can electric 3-wheelers be used for both passengers and goods?

Ans. Yes, many models are versatile, suitable for carrying passengers or light cargo. They are widely used in urban areas for city transport, deliveries, and ride services.

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