Regulatory Alerts2015-09-14 | Finance Leasing Act Direction No. 1 of 2015Loan to Value Ratio for Loans and Advances in respect of Motor Vehicles
The Director of the Department of Supervision of Non-Bank Financial Institutions at the Central Bank of Sri Lanka issued Direction No. 01 of 2015 to regulate lending practices. Specialized Leasing Companies are prohibited from granting loans or advances for motor vehicles exceeding 70 percent of the vehicle's market value as determined by a professional valuer. This mandate applies to finance leases, hire purchase facilities, and other related advances effective from 15 September 2015.
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