SBP reduces auto financing period
Business
The maximum tenure of auto finance has been reduced from five years to three years.
KARACHI (Web Desk) - The State Bank of Pakistan (SBP) on Tuesday revised regulations for consumer financing and reduced the financing period for auto financing.
Under the new regulations, the maximum tenure of auto finance has been reduced from five years to three years. This will be applicable for cars above 1000cc.
For vehicles up to 1000cc, the tenure of auto loan has been reduced to five years from seven years.
This step will help to moderate demand growth in the economy, leading to slower import growth which will support the balance of payments.
As per the latest SBP data, automobile financing in Pakistan witnessed a marginal increase of Rs3 billion to Rs367 billion in April 2022.
