SHANGHAI Dec 27 China issued proposed new
guidelines on Tuesday aimed at tightening rules and
standardising criteria for granting car loans, in a move to
address concerns over the risk of borrowers defaulting.
Car loans have soared in recent years partly as a result of
financing deals offered by automakers to boost sales. Nearly 30
percent of purchases were made on credit last year, up from 20
percent in 2013 , according to analysts from Sanford C.
Bernstein and Deloitte.
The People's Bank of China issued the revised guidelines on
its website and sought feedback from the public by Jan. 27.(www.pbc.gov.cn).
In future, the PBOC said borrowers must provide valid
guarantees, and lenders will have to establish a credit rating
system and use independent external credit rating facilities to
assess a customer's creditworthiness.
(Reporting by David Stanway; Editing by Simon Cameron-Moore)