Dreaming of starting a business that’s both profitable and helps the environment? An electric rickshaw business is the perfect opportunity, especially in 2025. With India’s strong push for electric vehicles (EVs), it’s your time to get an EV loan, have a steady business income, and contribute to a greener India.
But how do you get started?
This blog post will break down the costs, show you the profit potential, and explain how e-rickshaw finance from Manba Finance can make your dream a reality.
Why 2025 Is a Big Year for E-Rickshaw Owners
The market for electric rickshaws is booming. This growth is driven by two key factors:
- Rising Demand for Eco-Friendly Transport: Commuters are increasingly choosing electric rickshaws for their quiet, sustainable, and affordable rides. This shift is creating a massive and growing customer base in both urban and semi-urban areas.
- Government Push for EV Adoption: The Indian government is providing unprecedented support for e-rickshaw finance. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, launched in late 2024 and replacing the FAME-II scheme, is actively incentivizing the purchase of electric three-wheelers, making EV loans more affordable than ever. This policy is a game-changer, reducing the barrier to entry for aspiring owners.
Electric Rickshaw Loan Basics
Getting a commercial vehicle loan is the most practical way to start your business. Here’s what you need to know about the financing landscape in 2025:
- Loan Amount Range: Financial institutions typically fund 85% to 90% of the on-road price of an e-rickshaw. This means you only need to arrange a small down payment.
- Interest Rate Trends: In 2025, interest rates for commercial vehicle loans generally range from 9% to 14% per annum, depending on your profile and credit score. However, this may differ based on the customer’s location, loan tenure, and profile.
- Subsidies & Incentives: The PM E-DRIVE scheme offers significant subsidies directly deducted from the vehicle’s price. For e-rickshaws, the subsidy is ₹2,500 per kWh of battery capacity, capped at ₹12,500 per vehicle for the financial year 2025-26.
Cost Breakdown of an Electric Rickshaw
Before you apply for EV loans, it’s essential to understand the full costs involved.
- Purchase Price (With and Without Subsidy): Let’s look at the numbers. While the upfront cost of an e-rickshaw may seem high, the long-term savings make it a smart investment.
| Cost Item | Without Subsidy | With Subsidy (approx.) |
| Purchase Price | ₹1.25 Lakh to ₹2.15 Lakh | ₹1.13 Lakh to ₹2.03 Lakh |
| Registration | ₹1,000 to ₹3,000 | Often waived in many states |
| Insurance | ₹5,000 to ₹10,000 | ₹5,000 to ₹10,000 |
| Total On-Road Cost | ₹1.31 Lakh to ₹2.28 Lakh | ₹1.18 Lakh to ₹2.16 Lakh |
- Maintenance & Charging Cost: This is where an e-rickshaw truly shines. Maintenance costs are significantly lower due to fewer moving parts, and charging costs are also minimal. The combined cost can be approximately ₹20-₹40, which is enough for a range of 80-120 km, significantly lower than a traditional diesel or CNG rickshaw.
Calculating Your EMI and Affordability
The most crucial part of your e-rickshaw finance decision is ensuring you can comfortably repay your commercial vehicle loan.
- Factors Affecting EMI: Your monthly EMI is determined by three factors: the loan amount, the interest rate, and the loan tenure (the repayment period). A longer tenure means a lower EMI but more total interest paid over time. Similarly, a higher down payment can reduce your EV loan amount and, consequently, your EMI. Hence, it’s wise to find the right EMI and tenure that works for you.
- Daily Earnings Estimate: A dedicated e-rickshaw driver can earn ₹600 to ₹1,500 per day in gross income, depending on the city and the number of trips. Let’s take a conservative estimate of ₹1,000 per day. After deducting your daily charging and other minor expenses, your net profit could be around ₹800 to ₹900 per day.
- Break-even Period: By consistently earning a daily net profit, you can comfortably cover your monthly EMI and start earning a substantial income. This makes the e-rickshaw business highly profitable, with a quick break-even period that allows you to start saving and growing your income very soon after starting.
You can also identify your EMI using the Manba Finance EMI Calculator.
Why Choose Manba Finance for Your E-Rickshaw Loan?
At Manba Finance, we understand the needs of drivers and small business owners. Serving more than 900 K+ customers, we are committed to making your dream of owning an e-rickshaw a reality with commercial vehicle loans.
- Quick Disbursal: Our streamlined, paperless process ensures that your e-rickshaw finance loan is approved and disbursed quickly so you can get on the road and start earning faster.
- Low EMI and Flexible Repayment: We offer competitive interest rates and flexible repayment options that are tailored to your earning capacity, making your monthly payments stress-free.
- Minimum Documentation: We simplify the e-rickshaw loan application with minimum documentation, reducing hassle and saving you time.
Start Your EV Journey Today!
Owning an electric rickshaw isn’t just a smart financial move; it’s an investment in a cleaner, more sustainable future. With rising demand, strong government support for EV loans, and low operational costs, the profit potential is immense.
Ready to start your journey?
Apply for your e-rickshaw finance loan with Manba Finance today and take the first step towards a profitable and independent future.
