Yousef Hojjati, an official at TM's Transportation and Traffic Organization, said the fund will pay loans collectively worth 12.5 billion rials ($100,000) to the owners of carbureted motorcycles who are willing to replace their vehicles with a new, efficient and eco-friendly one, the Persian news website Fararu reported.
The lending is to be offered with an interest rate of 4%.
Hojjati told the media that senior officials have agreed on the general terms of the incentive, according to Financial Tribune.
"TM will start offering loans as soon as the two sides reach an accord on the details," he said.
The price of electric motorcycles, which was about 100 million rials ($800) last March, has almost tripled over the past few months. An ordinary e-bike was sold on Monday for 260 to 300 million rials ($2,080 to $2,400).
To be eligible for the incentive, buyers should fill an application form on the website of Tehran Air Quality Control Company (Air.tehran.ir) affiliated to the municipality. Applicants are required to enter their personal ID information plus the motorcycle’s details.
According to TM rules, the incentive is offered only once to each Tehran resident who buys an electric motorcycle running on a 3-kWh or more powerful batteries.
After the documents are sent by the applicant and verified, the buyer will receive the grant in a month.
Some observers say lowering the minimum driving age from 18 to 16 and allowing women to drive the two-wheelers could encourage more people to use e-bikes.
The TM move is expected to promote the use of zero-emission electric motorcycles in the metropolis and help curb air pollution in the overcrowded capital.