Karachi May 24 2022: The maximum tenure of auto finance facility is reduced from five (5) years to three (3) years for vehicles above 1,000 cc engine displacement and from seven (7) years to five (5) years for vehicles up to 1,000 cc engine displacement.
The total monthly amortization payments of consumer financing facilities, should not exceed 40% of the net disposal income of the prospective borrower on engine displacement and locally assembled / manufactured electric vehicles. The minimum down payment is increased from 15 percent to 30 percent of the value of vehicle for vehicles of all engine displacement and locally assembled / manufactured electric vehicles.
Overall auto loans/financing limits availed by one person from all banks/DFIs, in aggregate, shall not exceed Rs3,000,000/-, at any point in time. However, the financing limit of borrowers whose approved limit already exceeds Rs3,000,000/- may be amortized as per existing terms and the same shall not be further increased.
However, the regulatory treatment of Roshan Apni Car product communicated earlier to RDA participant banks will continue to remain effective.
The above amendments in PRCF will be applicable, with immediate effect, on new financing facilities where the Banks/DFIs have not granted the approval yet. All other instructions on the subject shall, however, remain unchanged.
