Banks can now offer up to Tk80 lakh loans for EV, hybrid vehicle purchases

Customers will be able to avail loans of up to Tk80 lakh from banks to purchase electric and hybrid vehicles, according to a new directive issued by Bangladesh Bank.

In a circular sent to all banks today (5 May), the central bank introduced enhanced auto loan facility to promote the use of environmentally friendly vehicles.

Under the new policy, individuals can take up to Tk60 lakh in loans for conventional cars, while the limit has been raised to Tk80 lakh for electric and hybrid vehicles.

The circular also revises the debt-equity ratio. “For conventional vehicles, loans can be sanctioned at a maximum ratio of 60:40. For electric and hybrid vehicles, this has been increased to 80:20, allowing borrowers to access a higher proportion of financing,” it added.

According to the directive, a borrower’s total loan exposure will include auto loans taken by their dependents as well.

The central bank has also increased the ceiling for personal loans. Individuals can now take up to Tk40 lakh in personal loans from banks, up from the previous limit of Tk20 lakh.