China scraps mandates on down payments for personal car loans

BEIJING (Reuters) – China’s central bank on Wednesday unveiled revisions to car loans, scrapping mandates on the lowest down payments on loans granted to borrowers buying new cars for private use.

Financial institutions can independently determine the lowest down payments on personal auto loans for gasoline-engine cars and new energy vehicles (NEVs), the central bank said in a statement released jointly with the National Financial Regulatory Administration (NFRA).

Prior to the revision, which takes effect immediately, NEVs were subject to a minimum down payment of 15% while internal combustion vehicles fell under the preview of a 20% down payment limit.

(Reporting by Qiaoyi Li, Ziyi Tang and Ryan Woo; Editing by Tomasz Janowski)


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