Please refer to BPRD Circular No. 10 dated August 03, 2016 and BPRD Circular Letter No. 29 dated September 23, 2021, whereby revised Prudential Regulations for Consumer Financing (PRCF) and subsequent amendments therein were issued, respectively.
2. It has been decided to make the following amendment in PRCF:
REGULATION R-11 (Auto Loans/Financing):
Maximum Tenure: The maximum tenure of auto finance facility is reduced from five (5) years to three (3) years for vehicles above 1,000 cc engine displacement and from seven (7) years to five (5) years for vehicles up to 1,000 cc engine displacement.
3. Moreover, other amendments issued earlier, vide BPRD Circular Letter No. 29 dated September 23, 2021, will henceforth be applicable on financing for all locally assembled / manufactured vehicles, including on financing for vehicles of up to 1,000 cc engine displacement and locally assembled / manufactured electric vehicles. However, the regulatory treatment of Roshan Apni Car product communicated earlier to RDA participant banks will continue to remain effective.
4. The above amendments in PRCF will be applicable, with immediate effect, on new financing facilities where the Banks/DFIs have not granted the approval yet. All other instructions on the subject shall, however, remain unchanged.
5. Please acknowledge receipt.