Please refer to Regulation R-11 of the Prudential Regulations for Consumer Financing as amended from time to time.

2. Based on the review of Prudential Regulations and the feedback received from the banks/DFIs, it has been decided to substitute Regulation R-11 with the following:

“While allowing auto loans, the banks/DFIs shall ensure that the minimum down payment does not fall below 10% of the value of the car/vehicle. Further, the banks/DFIs may extend auto loans for the ex-factory tax paid price fixed by the manufacturers and the cost of ancillary item(s) (like CNG Kits, vehicle tracking device i.e. Global Positioning System commonly known as “Tracker” etc.) desired by the borrower to be fitted in the car/vehicle. However, the banks/DFIs shall not finance the premium charged by the dealers and/or investors over and above the ex-factory tax paid price of cars/vehicles, fixed by the manufacturers.”

3. Please acknowledge receipt.