ISLAMABAD, Sep 24 (Online): Ban has been slapped by State Bank of Pakistan (SBP) on banks to extend loans to people for buying imported vehicles.
As per media reports conditions have also been tightened on providing diverse loans including car, personal and credit card to curb inflation and imports.
A notification issued by SBP said that the requirements for car loans, personal loans and credit card loans have been tightened. From now on, a car loan borrower will pay 30% down payment instead of 15% and the maximum time of loans for vehicles has been reduced from seven to five years.
Notification further held the maximum tenure of personal loans has been reduced from five to three years and the maximum debt-to-income ratio has been reduced from 50% to 40%.
According to the SBP, banks had issued a record number of loans worth Rs360 billion for vehicles in August. Under the new rules, the total car loan limit for an individual cannot exceed Rs3 million.
New regulations would not apply to locally manufactured or assembled vehicles of up to 1,000cc engine capacity to secure lower to middle income category purchases.
“In order to encourage Roshan Digital Accounts and facilitate overseas Pakistanis who have opened these accounts, regulatory instructions for Roshan Apni Car product of the banks or DFIs have also not been changed,” SBP indicated.
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