🚲 Government New Bike Loan with 35% Subsidy – Full Guide for 2025

In today’s world, having your own two-wheeler is more than just comfort—it’s a tool for earning, saving time, and increasing freedom. Whether you want to start a delivery business, rental service, mobile workshop, or use your bike for daily transport, there’s good news for you.

The Government of India, under the Prime Minister’s Employment Generation Programme (PMEGP), is offering bike loans with up to 35% subsidy for eligible applicants. This means the government will bear a big part of your bike cost, and you pay much less from your pocket.

If you’re curious about how this works, who can apply, and how much you can save, keep reading. I’ll break it down in simple terms so you can understand every detail.

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🌟 What Is This Bike Loan with Subsidy?

The scheme is a part of PMEGP, managed by Khadi and Village Industries Commission (KVIC) and supported by various banks.

It’s called a “credit-linked subsidy”—which means the bank will give you a loan for your bike (or related business project), and the government will directly pay a percentage of your loan amount as a subsidy. You only have to repay the remaining loan after the subsidy is adjusted.

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📊 How Much Subsidy Will You Get?

The subsidy depends on two main factors:

1. Category you belong to – General or Special Category

2. Whether you live in a rural or urban area

💡 Example:
If you are a woman living in a rural area, buying a ₹1,00,000 bike:

• Your own contribution: ₹5,000 (5%)

• Government subsidy: ₹35,000 (35%)

• Bank loan: ₹60,000
  So, you get your bike with just ₹5,000 upfront and repay the remaining ₹60,000 to the bank in easy EMIs.

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🏍 What Types of Bikes Are Covered?

This scheme is not just for personal use—it’s aimed at self-employment. That means:

• Petrol or electric bikes for delivery services (Zomato, Swiggy, Amazon, etc.)

• Rental bikes for tourism

• Bikes for courier or parcel delivery

• E-bikes for eco-friendly services

• Motorcycles for field work in agriculture or small businesses

As long as your bike purchase is linked to income generation, you can apply.

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🎯 Who Can Apply?

To be eligible:

• Age: Minimum 18 years

• Education: For projects above ₹10 lakh (manufacturing) or ₹5 lakh (service), you need at least 8th standard pass

• Income: No strict limit, but you must be able to repay the bank loan

• Business Purpose: Bike must be used for a small business, not just personal leisure

• Special Category Benefits: Women, SC/ST/OBC, Minorities, Ex-servicemen, Transgender people, and those in the Northeast get extra subsidy

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📝 Documents You’ll Need

• Aadhaar Card

• PAN Card

• Address proof

• Passport-size photos

• Caste / Special Category certificate (if applicable)

• Bank account details

• Project report for your business idea

• Educational qualification proof (if required)

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💡 Why This Scheme Is a Game-Changer

1. Low Upfront Cost – You only need 5–10% of the bike cost.

2. Government Support – Up to 35% of your loan is paid by the government.

3. No Collateral – For loans up to ₹10 lakh, banks won’t ask for security.

4. Flexible Repayment – Pay back in 3–7 years, with possible moratorium (payment holiday) in the beginning.

5. Support for Rural Economy – Higher subsidies for rural applicants encourage village-level entrepreneurship.

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🛠 Step-by-Step: How to Apply

Step 1: Check Eligibility
Confirm your age, education, and business purpose meet the scheme requirements.

Step 2: Prepare Your Documents
Get your Aadhaar, PAN, bank passbook, category certificate, and a simple business project report ready.

Step 3: Apply Online
Visit the official TAHDCO portal:

Apply Link

Fill in your details, upload documents, and submit.

Step 4: Wait for Selection
Your application will be reviewed by a district-level task force committee.

Step 5: Bank Processing
If approved, your bank will sanction the loan. The subsidy portion will be kept in a special account and adjusted later.

Step 6: Buy Your Bike & Start Your Business
Once the loan is disbursed, you can purchase the bike and start operations.

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📌 Example Scenarios

1. Delivery Business
Ravi, a 22-year-old from a rural village, applies under the special category. He gets a 35% subsidy and uses his bike for Zomato deliveries. Within 8 months, his earnings cover his EMIs and fuel costs.

2. E-Bike Rental
Priya, a woman entrepreneur in a tourist town, gets a loan for 5 e-bikes under the scheme. The high subsidy helps her start the business with minimal personal funds.

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🏦 Which Banks Offer This Loan?

Most public and private sector banks participate, including:

• State Bank of India (SBI)

• HDFC Bank

• Bank of Baroda

• Bank of Maharashtra

• Canara Bank
  You can choose your nearest branch after online application.

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⚠️ Things to Keep in Mind

• Subsidy is only for business-linked projects.

• If you close the loan early or misuse funds, subsidy might be taken back.

• Maintain proper EMI payments to avoid penalties.

• Some banks may ask for a guarantor if your credit score is low.

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💬 Final Thoughts

This Government Bike Loan with 35% Subsidy is a golden opportunity for anyone looking to start or grow a small business. With minimal personal investment and strong government backing, you can own a bike that earns for you—whether in deliveries, rentals, or other services.

If you’ve been waiting to start something of your own, this is the right time. Prepare your documents, apply online, and take that first ride toward financial independence. 🚀