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CBSL tightens LTV ratios for vehicle loans from today

The Central Bank of Sri Lanka (CBSL) has implemented new Loan-to-Value (LTV) limits from today (25).

The revised rules reduce LTV ratios for motor vehicle loans and introduce a 70% LTV cap on credit secured by gold.

Vehicle loan LTV limits have been cut by 10 percentage points.

New limits are:

• 60% for commercial vehicles

• 40% for cars, SUVs, vans and three-wheelers

The rules apply to unregistered vehicles and those used for less than one year after first registration.

The CBSL said the move targets rising credit growth in vehicle and gold-backed lending.

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