Auto loan benefits increased; up to 80 lakh taka for local and eco-friendly vehicles

Staff Report: PNN

Bangladesh Bank has introduced significant changes in car loan policy to strengthen the domestic automobile industry and promote environmentally friendly vehicles.

Under the new directive, the loan limit for electric, hybrid, and locally assembled or manufactured vehicles has been increased to a maximum of 80 lakh taka.

A circular signed by Bangladesh Bank Director Gazi Md. Mahfuzul Islam was sent to all scheduled banks.

Under the new rules, general private car loans can go up to 60 lakh taka, while eco-friendly or locally produced vehicles can receive up to 80% financing.

Previously, loans had to be repaid within five years, but now the repayment period has been extended to eight years.

The central bank said the aim is to encourage investment in local automobile manufacturing and promote green transportation.

Banking and automotive experts believe the policy will increase demand for eco-friendly cars and boost local manufacturing and employment.