Employees work along a Geely Automobile assembly line in Cixi, Zhejiang province. Photo: Reuters/Carlos Barria

Beginning January 1, 2018, the maximum proportion of loans for the purchase of self-use traditional powered vehicles will be set at 80%, Yicai.com reported, citing a notice jointly issued by the People’s Bank of China and the China Banking Regulatory Commission.

For self-use new energy vehicles, the maximum loan ratio will be at 85%, while the maximum amount for loans for used cars stands at 70%, the report said.

According to the notice, the reason for adjusting the loan practice is to implement the State Department’s policy of adjusting its economic structure, release diversified consumption potential, promote economic development of the green industry and enhance the quality of supply in the auto consumer credit market.

In March last year, the two ministries jointly issued a guiding opinion on increasing financial support to green consumption and automobile loans.

According to the guiding opinion, the proportion of the down payment for personal automobile loans of new energy vehicles and used cars can be as low as 15% and 30%.