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.


Our Correspondent July 24, 2014

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 24th,  2014.

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

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

E-Publications

Most Read