Bangladesh Raises Loan Limits for Electric, Hybrid Cars and Personal Borrowing

According to a circular issued on Tuesday, bank customers in Bangladesh can now take loans of up to 8 million taka to purchase electric and hybrid vehicles. For conventional fuel-powered cars, the maximum auto loan limit has been set at 6 million taka.

The central bank has also revised the debt-to-equity ratio. For conventional vehicles, loans can be provided at a maximum ratio of 60:40, while for electric and hybrid vehicles the ratio has been increased to 80:20, making financing more accessible for environmentally friendly options.

The circular states that when calculating a borrower’s total loan exposure, auto loans taken by their dependents will also be included.

In addition, limits on personal loans have been raised. Individuals can now take up to 1 million taka in unsecured loans. With proper collateral, banks may extend higher amounts, but under no circumstances can the total exceed 4 million taka.

Bangladesh Bank also instructed banks to ensure that growth in consumer financing does not exceed their overall loan growth, aiming to maintain financial stability while expanding access to credit.