Maximum loan-to-value ratio on vehicles reduced to 70% again
November 27, 2015 11:18 am
Leasing for motor vehicles allowed up to 70% of total value of vehicle with effect from December 01, the Central Bank of Sri Lanka said.
The Central Bank on September 14 directed banks, finance and leasing companies to follow new leasing rates which have been set at a maximum 70 per cent per vehicle.
However, the maximum Loan-to-value (LTV) ratio for vehicle leasing was increased to 90% from October 29.
Previously potential vehicle owners could lease vehicles at 100 per cent of the value of the vehicle, which had led to surge in imports and traffic jams on roads.