Punjab Government Bike Scheme: All That You Need to Know About The Excellent Education Friendlier Initiative to Empower Youth

Bike Scheme

Punjab Government Bike Scheme has been launched in collaboration with the Bank of Punjab to provide petrol and e-bikes at concessionary price to the students of Punjab. With a subsidy of Rs. 1 Billion, the students enrolled in University or Degree Colleges of Punjab can benefit from the scheme. Each district will get the quota according to the proportion of Its population. The GoP is paying Rs.20,000 as the Govt share in down payment and markup payment to the banks. The students just have to pay their share of the down payment and easy 2-year installments. In phase 1, GoP is providing 20,000 bikes to the students including 19,000 petrol bikes and 1,000 electric bikes.

Punjab Government Bike Scheme

  • Male students will pay Rs.11,676 as interest-free monthly installment
  • Female students will just pay Rs.7,325 as interest-free monthly installment
Bike Scheme Installment Female
Bike Scheme Installment Male

Initially, 19,000 petrol bikes are being offered under the scheme, with the following segregation among male and female students:

Initially, 1,000 electric bikes are being offered under the scheme, with the following segregation among male and female students of the selected districts:

Eligibility Criteria for Punjab Government Bike Scheme

The scheme offers an excellent opportunity for the students to own their rides. The enrolled over 800,000 are eligible under the scheme under the following criteria.

Criteria for the Scheme

  • The student must be 18 Years Old
  • Must be a regular student of a University/Degree College recognized by the Higher Education Commission (HEC).
  • Must possess a driving license or Learners’s Permit
  • If the submitted applications exceed the allotted quota then e-balloting will be conducted.

Before anyone indulges in taxation matters, he must be aware of the basics of income tax in Pakistan:

19,000 Petrol Bikes under GoP Motor Bike Scheme

  • 7,324 Petrol Bikes for Female Students
  • 11,676 Petrol Bikes for Male Students

1,000 Electric Bikes under GoP E Bike Scheme

  • 300 E Bikes for Females
  • 700 E Bikes for Males
  • Students Enrolled in the university and degree colleges of the following 5 cities are eligible (Lahore, Rawalpindi, Faisalabad, Multan and Bahawalpur)

Reasons for Rejection/Decline of the Application

The application can be rejected or declined due to the following reasons:

  • Unsatisfactory Physical Verification of Co-Borrower/Guarantor
  • A bad credit history or ECIB of the Co-Borrower/Guarantor
  • High DBR (Debt Burden Ratio/Low Payment Capacity) of the Co-Borrower/Guarantor, DBR should not exceed 40%
  • Failure to Comply with Name Screening or existence in the proscribed List of persons
  • Submitting Fake/Flase/Fabricated or incorrect information to the bank

How the Scheme Works

The student meeting the defined criteria of the scheme will apply for the bike on the bike scheme web portal. Only Regular students of HEC’s recognized University or Degree College may apply for the scheme.

Upon completion of balloting, the bank shall inform the applicants about the ballot result if the application is approved or rejected through SMS on their registered mobile number. Later the bank will call the applicant to inform about the approval and completion of facility approval formalities and documentation.

The last date for submission of the online applications is April 29, 2024. Upon closure of the application submission, Punjab Information Technology Board (PITB) will carry out the balloting process.

A grievance redressal mechanism is devised and available on the web portal for the applicant’s grievances. The applicants may also approach through the helpline at 042-111-333-267 or by sending an email to [email protected].

Bike Scheme Adv

Bank’s SOP for Processing of the Case under GOP Bike Scheme

The bank’s motive is to secure its money and ensure timely repayments of a facility. The Bank of Punjab is following the below-mentioned guidelines for processing of the facility under GoP’s Bike Scheme.

  • A co-borrower or guarantor is required under the scheme because the students generally have no income source to repay the installment amount. It’s the co-borrower or guarantor who will be paying the scheme installments.
  • As per scheme terms, the student will be the secondary borrower and his co-borrower/guarantor will be the primary borrower, whose income is used for the calculation of debt burden. The co-borrower/guarantor can be the Spouse, Parents, or Siblings of the applicant. Where the applicant/student has his own source of income, no co-borrower or guarantor is required. An expat/overseas Pakistani cannot be the co-borrower or guarantor.
  • The co-borrower or guarantor or the applicant himself must have a source of income to repay the monthly installment

Formal and Informal Income Sources Acertained by the Bank

Source of income includes the formal and informal income that the applicant’s co-borrower/guarantor earns through different sources:

  • Income from Salary
  • Business Income
  • Income from Agriculture Resources
  • Rent Income of Land or Property
  • Professional (Doctors, Lawyers Etc.) Self Employed Income
  • Any other source of Income

Both formal and informal sources of income are acceptable under the scheme for the calculating Debt Burden of the applicant’s financial guarantor/co-borrower. A formal source of income is verifiable by Bank Statement, Income Tax Returns, Audited financial statements, or Any Rent Deed.

Any income, not verifiable by any of these means is classified as informal income. To verify the informal income the bank will require paid utility bills, education fee receipts of the children, sale/purchase invoices for shopkeepers or small businesses, and a salary certificate from the employer if the salary is paid in cash or other than bank account. The bank then will evaluate the informal income and will get it verified through 3rd party arrangements.

Documentary Requirements for GoP’s Bike Scheme

The student along with co-borrower/guarantor will have to complete the following formalities:

  • Opening of loan facility account with the Bank of Punjab
  • Signing of FOL (Facility Offer Letter) of the loan
  • Deposit of the Down Payment of related advance payments
  • Completion and Signing of Charge or Legal Documents

Information Required from the Co-Borrower/Guarantor

The co-borrower or guarantor under the scheme will be required to provide the following information for processing of the case:

  • Co-Borrower’s or Guarantor’s Personal Information
  • The details of income and sources
  • The details of all loan facilities availed with monthly installments being paid for calculation of debt burden

Debt Burden Ratio and Its Calculations

For every loan facility, the bank calculates the Debt Burden/Repayment capacity of the borrower to ensure timely payment of the installments. To do this banks use the following formula for the calculation of  Debt Burden Ratio (DBR).

DBR = (Total Current Monthly Installments  + Additional Bike Monthly Installment) / Total Disposable Income * 100

For a borrower who is paying 10,000 existing monthly installments and will also be paying a bike installment of Rs. 11,676 from the coming month and has a disposable income of Rs.60,000. His DBR will be calculated as follows:

DBR = (10,000+11,676)/60,000 * 100 = 21,676/60000 * 100 = 36.12%

Booking, Delivery, Insurance, and Installments Payments

Upon receiving a booking order from the Bank of Punjab, the bike dealer will either book a bike for a tentative delivery date or will provide the Bank with the chassis and engine number if the bike is available with him. The bank will arrange the insurance of the bike and hand over the delivery order to the student so that he/she may receive it from the concerned bike dealer.

The bike shall be insured by the Bank of Punjab as per Bank’s rules. The first-year insurance premium will be paid in advance along with the down payment, while the 2nd year premium will be included in the 1st year installments. The purpose is to secure the bike against theft or accidental damage.

The applicant has to pay the loan installment monthly by depositing the installment amount in his borrower/co-borrower loan account. The late payment charges will be applied in case of delay in payment of installment after the due date.

After completion of the term or adjustment of the loan facility, a No Objection Certificate (NOC) will be issued to the student for getting the vehicle sole ownership without any lien of the bank. The student then can sell or transfer the bike to some person.

Payment of Markup by GoP for the Bike Scheme

The monthly markup amount of the installment will be paid by the Government of Punjab and the applicant just have to pay the principal amount of monthly installment. Additionally, GoP is paying Rs.20,000 as an equity contribution in the shape of a down payment.

The student must not miss the opportunity and apply for the bike facility today and save their money for future.

Bike Scheme Markup

Electric Vs Petrol Bike

Electric Bike

  • No High-Cost Fuel Expense
  • No Tuning & Over Head Expense
  • Cheap Spare Parts
  • Comfortable Ride
  • Decent Ride for Female Drivers
  • Low-cost electric charging
  • No risk of increase in petrol price

Petrol Bike

  • Day to Day High-Cost Fuel Expenses
  • Regular High Overhead Cost
  • Costly Spare Parts
  • The ride is not so comfortable
  • Not best suitable for Female drivers
  • High-cost petrol expense
  • Increase in running cost with increase in petrol price

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FAQs

The application can be submitted through the web portal www.bikes.punjab.gov.pk. No application can be submitted by hand. The online application can be submitted after online registration of the student.

The student who is 18 years of age, possesses a driving license/learner’s permit and enrolled as a regular student in HEC’s recognized University or Degree College is eligible for the scheme.

Both Electric and Petrol Bikes are available under the scheme. While applying under the scheme on the portal, the student may opt for the available petrol and electric bikes.

The last day to apply under the scheme is April 29, 2024.

The monthly installment amount depends upon the bike chosen, though the male students will pay as low as Rs.11,676, while females will pay Rs.7,325 as an interest-free monthly installment.

The applicants may approach the Bank of Punjab Help Line at 042-111-333-267. The authorities may also be approached by sending a written message through the web portal or email at [email protected]

It’s advisable for the applicants to opt for the right choice while submitting the application. However, the option may be revised before the last date of submission April 29, 2024.

The female students can opt for Petrol or Electric bikes of their choice.

The applicants must have either a driving licenes or Lerner’s permit to apply under the scheme.

No, an applicant can just apply one bike as per scheme terms and conditions.

No, the applicant has to follow the repayment plan of the Bank of Punjab. However, the facility can be closed earlier with the consultation of the bank by paying off the remaining amount before maturity.

No, the registration cost is not included in the plan. However, the insurance cost is included in the installments.

Yes, siblings can also apply for the scheme if they meet the prescribed criteria of the scheme.

A price limit of Rs.250,000 for an e-bike (scooty price/electric bike price) and Rs.150,000 for a petrol-bike is defined under the scheme. Any bike above that price can be opted if the additional amount upfront is paid by the applicant and with the satisfaction of the Bank of Punjab. The bike should selected amongst the available options from the web portal.

Conclusion

The Goverment of Punjab Students Bike Scheme is state of the art Cheif Maisiter’s Punjab Youth Initiative for the youth of Punjab with a subsidy of Rs.1.0 Billion. Now the students enrolled in HEC’s recognised Universities and Degree Colleges of Punjab can own their ride by applying for the scheme. The scheme is a concessional one, with the payment of Rs.20,000 for the down payment by the GoP, while interest payment is also done by the GoP. The students can avail this facility from the Bank of Punjab with their employed family member as primary co-borrower or guarantor.

With this scheme, the student can own their bike to abstain from the hassle of public transport to reach their institution, by paying just the monthly installment and a limited down payment.

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28 Comments

    1. Dear Uzam Baig,

      You may opt for an electric bike.

      The scheme is primarily launched for graduate students studying in university and degree colleges. A link is provided on the webpage. The last date to apply is April 29, 2024.

      If you are graduate student, just follow the link https://beingfiler.com/punjab-government-bike-scheme/#how-the-scheme-works and click the web portal link to lead to desired page of Bikes Scheme.

      The other students might get in coming phases.

      Don’t forget to visit https://beingfiler.com/popular-taxation-blogs/ for future schemes and updates. Bookmark the page.

    1. Dear Umar Farooq,

      The scheme is primarily launched for graduate students studying in university and degree colleges. A link is provided on the webpage. The last date to apply is April 29, 2024.

      If you are graduate student, just follow the link https://beingfiler.com/punjab-government-bike-scheme/#how-the-scheme-works and click the web portal link to lead to desired page of Bikes Scheme.

      The other students might get in coming phases.

      Don’t forget to visit https://beingfiler.com/popular-taxation-blogs/ for future schemes and updates. Bookmark the page.

    1. Dear Muhammad Nabeel,

      The scheme is primarily launched for graduate students studying in university and degree colleges. A link is provided on the webpage. The last date to apply is April 29, 2024.

      If you are graduate student, just follow the link https://beingfiler.com/punjab-government-bike-scheme/#how-the-scheme-works and click the web portal link to lead to desired page of Bikes Scheme.

      The other students might get in coming phases.

      Don’t forget to visit https://beingfiler.com/popular-taxation-blogs/ for future schemes and updates. Bookmark the page.

    1. Dear Fatima,

      Females are encouraged to apply and have special quota.

      The scheme is primarily launched for graduate students studying in university and degree colleges. A link is provided on the webpage. The last date to apply is April 29, 2024.

      If you are graduate student, just follow the link https://beingfiler.com/punjab-government-bike-scheme/#how-the-scheme-works and click the web portal link to lead to desired page of Bikes Scheme.

      The other students might get in coming phases.

      Don’t forget to visit https://beingfiler.com/popular-taxation-blogs/ for future schemes and updates. Bookmark the page.

    1. Dear Mr. Waqas Ali,

      Hope you are doing good. The scheme is primarily launched for graduate students studying in university and degree colleges. A link is provided on the webpage. The last date to apply is April 29, 2024.

      If you are graduate student, just follow the link https://beingfiler.com/punjab-government-bike-scheme/#how-the-scheme-works and click the web portal link to lead to desired page of Bikes Scheme.

      The other students might get in coming phases.

      Don’t forget to visit https://beingfiler.com/popular-taxation-blogs/ for future schemes and updates. Bookmark the page.

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