Written by Cláudio Afonso | [email protected] | LinkedIn | X
The People’s Bank of China (PBOC) and the financial regulator issued a notice on Wednesday, adjusting the relevant policies for car loans in the country.
The firms have announced that lending institutions can now independently determine loan ratios for gasoline and electric passenger vehicles, including hybrids.
“Financial institutions should reasonably determine the down payments, terms, and interest rates of auto loans based on borrowers’ creditability and repayment capabilities,” the central bank said in a statement.
The revision is the first since the beginning of 2018 and it aims to bolster consumer confidence in the country. Both automakers and authorities have been troubled by a fierce price war and declining demand, prompting this move.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
