The State Bank of Pakistan has reported a significant decline of 25.6% in the issuance of bank loans for vehicle purchases on an annual basis in December 2023.
Data released by the central bank indicates that banks disbursed loans amounting to Rs 251 billion for vehicle purchases during December 2023, marking a notable decrease compared to the Rs 337 billion disbursed in December 2022.
However, despite the annual decline, there was a slight month-on-month growth of 2.3% in the issuance of vehicle purchase loans by banks in December compared to November.
In November, banks extended loans amounting to Rs 257 billion for vehicle purchases, which slightly decreased to Rs 251 billion in December.
The decrease in loan disbursements for vehicle purchases reflects potential shifts in consumer behavior, economic conditions, and lending practices within the banking sector.
As the country navigates economic fluctuations and evolving market dynamics, monitoring lending trends provides valuable insights into the overall financial landscape and consumer sentiment.
