Customers will now be able to take loans of up to Tk 8 million (80 lakh) to purchase electric and hybrid vehicles.

At the same time, the ceiling for personal loans to buy cars has also been increased, with individuals now eligible for up to Tk 4 million (40 lakh).

Bangladesh Bank set these new limits in a directive issued today, Tuesday outlining how much banks can lend for environmentally friendly vehicles and personal loans.

The demand for and use of electric and hybrid vehicles have been steadily increasing in the country due to their environmentally friendly and cost-efficient features. In the context of the recent energy crisis, demand for such vehicles is expected to rise further.