Bangladesh Bank has raised the loan ceiling for electric and hybrid vehicles to Tk80 lakh and doubled the personal loan limit to Tk40 lakh, in a move aimed at promoting environment-friendly transport and supporting growing consumer demand.
Under the new directive issued on Tuesday, banks can now provide up to Tk80 lakh in auto loans for electric and hybrid vehicles, while the cap for conventional vehicles has been set at Tk60 lakh, including insurance. Previously, personal loan limits stood at Tk20 lakh.
The central bank said the decision reflects rising demand for electric and hybrid vehicles, driven by their cost efficiency and environmental benefits, as well as recent energy supply concerns that are expected to further boost demand for such vehicles.
The directive also revises loan-to-equity ratios for vehicle financing. For conventional vehicles, banks will be allowed to finance up to 60 per cent of the total cost, with customers required to provide the remaining 40 per cent.
For electric and hybrid vehicles, the financing ratio has been increased to 80:20, allowing banks to cover up to 80 per cent of the vehicle’s value. This means that for a Tk1 crore vehicle, a customer can receive Tk 80 lakh in loans for an electric or hybrid model, compared to Tk60 lakh for a conventional vehicle.
Loans extended to dependent family members will be counted as part of the borrower’s total exposure, the central bank said.
In a separate provision, Bangladesh Bank increased the personal loan ceiling to Tk40 lakh, citing rapid growth in the consumer goods market, rising per capita income and sustained GDP growth.
The central bank said the revision reflects higher market prices and increasing consumer demand, enabling banks to extend larger loans to individuals. However, loans backed by deposits will remain outside this ceiling.
Banks have also been instructed to ensure that growth in consumer financing does not exceed the overall growth rate of total loans in their portfolios.
