Regulatory Alerts2020-04-24 | Finance Business Act Directions No. 3 of 2020Amendments to Directions on Loan to Value Ratios for Credit Facilities Granted in respect of Motor Vehicles
The Central Bank of Sri Lanka issued Directions No. 3 of 2020 to regulate loan-to-value ratios for motor vehicle credit facilities granted by Licensed Finance Companies. The directive establishes specific maximum lending percentages based on vehicle type, registration status, and whether the vehicle is electric, hybrid, or other. These ratios apply to both new and used vehicles, with distinct limits set for vehicles registered for less than or more than one year in Sri Lanka.
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