Dhaka, Bangladesh (BBN)- The central bank has asked the commercial banks to provide loans for purchasing vehicles only for using commercially on the basis of bank-client relationship instead of loan margin ratio, officials said.
“The central bank issued a clarification in this connection Wednesday to facilitate the purchasing of such vehicles as pickup van, truck, lorry and bus with bank financing,” a senior official of the Bangladesh Bank (BB) said.
From now on the banks are allowed to finance for purchasing such vehicles using their own credit policies for determination of risks, according the BB official. 
“The banks will have to fix the risk for such financing in line with the existing credit risk guidelines,” the BB official said, adding that the central bank earlier asked the banks to discourage credits to certain sectors including consumer financing.
Under the existing provisions, the banks are maintaining a 70:30 loan margin ratio, instead of 80:20 maintained earlier, in the housing finance. The ratio for the car loans and all other consumer financing is 30:70 instead of the 50:50 fixed earlier.
On January 22, 2012, the BB issued a notification with certain changes in the margin ratios of various loans to curb inflationary pressure on the economy through discouraging lending to ‘unproductive’ sectors.
BBN/SSR/AD-28Mar13-10:49 am (BST)