Jumat, Juni 26, 2015 | Issue Number : 2671

BI Relaxes LTV and FTV Ratios for Property and Motor Vehicle Loans

Bank Indonesia (“BI”) has issued Regulation No. 17/10/PBI/2015 on Loan to Value Ratio or Financing to Value Ratio for Loan and Financing Facilities for Property and Advance Payments for Loans or Financing Facilities for Motor Vehicles (“2015 Regulation”).

Through the 2015 Regulation, BI aims to stimulate domestic economic growth by:

1.	Renewing the Loan-to-Value (“LTV”) ratios for commercial banks and Financing-to-Value (“FTV”) ratios for sharia banks in granting loans and financing facilities for property;[1]and
2.	Updating the provisions regulating motor vehicle loans and financing by commercial and sharia banks.

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Through the 2015 Regulation, BI aims to stimulate domestic economic growth by:

1.	Renewing the Loan-to-Value (“LTV”) ratios for commercial banks and Financing-to-Value (“FTV”) ratios for sharia banks in granting loans and financing facilities for property;[1]and
2.	Updating the provisions regulating motor vehicle loans and financing by commercial and sharia banks.

......