PRUDENTIAL REGULATIONS FOR CONSUMER FINANCING. REF: BRPD CIRCULAR LETTER NO. 15 DATED 20.12.2010.

  1. Please refer to Regulation 21 of Guidelines for Prudential Regulations for Consumer Financing (Regulations for Auto loans), circulated vide BRPD Circular No. 07 dated 03.11.2004 and BRPD Circular No. 33 dated 03.11.2010.
  2. In the BRPD Circular No. 33 dated 03.11.2010, Regulation-21 was addressed in the following manner: ”The banks desirous of financing the purchase of used cars shall prepare uniform guidelines for determining value of the used vehicles. However, in no case the bank shall finance the cars older than 5 (Five) years.”

The issue has been reviewed further and it has now been decided that the above regulation will be replaced as under:

Regulation-21: ‘‘The banks desirous of financing the purchase of used vehicles shall prepare uniform guidelines for determining value of the used vehicles. However, the bank shall only finance the vehicles imported as described in the existing Import Policy Order.”

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