Car Loan Approvals Dip for 17th Sequential Month

Web DeskDecember 21, 2023
Car Loan Approvals Dip for 17th Sequential Month

In November 2023, auto-financing sustained a continued downward trend for the 17th consecutive month, marking a 2.6 percent decrease in total car loan amounts from Rs. 264 billion in October to Rs. 257 billion.

Data sourced from the State Bank of Pakistan (SBP) indicates that auto financing, which tallied at Rs. 340 billion in November 2022, has steadily declined by 24.4 percent or Rs. 83 billion. This decline is notable from its peak of Rs. 368 billion in June 2022, indicating a substantial drop of Rs. 111 billion during the period under review.

Consumer financing for house construction remained stable at Rs. 207 billion by November 2023, showing no change from the previous month. However, it witnessed a decline of 3.2 percent year-on-year compared to Rs. 214 billion during the same period in the prior year.

Read more:Seres 3 EV Slashes Price by Rs. 809,000 Just One Month Post Launch

On another front, personal loans extended through credit cards surged significantly by 27.3 percent year-on-year to Rs. 108 billion in November. This category of loans also displayed a marginal uptick of 2.9 percent month-on-month from Rs. 105 billion recorded in the preceding month.

In a broader perspective, overall credit extended to end-users, reflecting consumer financing, diminished to Rs. 825 billion in November. This marked an 8.5 percent year-on-year and 0.5 percent month-on-month decline.

Furthermore, outstanding credit to the private sector showcased a slight 0.2 percent year-on-year decrease, amounting to Rs. 8.19 trillion. Loans directed to the private sector’s businesses settled at Rs. 7.05 trillion.

 

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