Up to nine years old: SBP allows financing of used cars

SBP allows financing of cars older than five years and up to nine years, according to a circular issued by the bank.

KARACHI: The State Bank of Pakistan (SBP) has allowed the financing of cars older than five years and up to nine years, according to a circular issued by the bank on Wednesday. Amending the Prudential Regulations for Consumer Financing, the SBP said banks/development finance institutions (DFIs) desirous of financing the purchase of used cars will prepare uniform guidelines for determining the value of used vehicles. “In no case, the bank/DFI shall finance the cars older than nine years. However, cars older than five years and up to nine years can only be financed subject to the condition that complete repayment of financing is restricted within 12 years of such car age,” it stated.

Published in The Express Tribune, July 24^th,  2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.