Finance Ministry sources said yesterday that a new policy will have to be followed by all financial institutions commencing 1 January 2017 when purchasing vehicles on a lease basis.
As a result of this new policy, before a vehicle is bought, 70 per cent of the value of the vehicle could be sought by way of financing in the leasing process with effect from 1 January next year.
The limit for leasing based on the type of vehicle has also been changed as part of the new leasing policy.For motor vehicles, leasing facilities will be provided to cover only 50 per cent of the value of the vehicle while for three-wheelers it has been reduced to 25 per cent.
However, 70 percent of the value would be available on the leasing facility for a secondhand three-wheeler and for motorcycles.
For buses the leasing facility will cover 90 per cent of the value of the vehicle. These changes were provided for in proposals in Budget 2017.