The maximum Loan-to-value (LTV) ratio for vehicle leasing will be increased from 70 percent to 90 percent with effect from Monday (Oct. 05), Finance Minister Ravi Karunanayake said yesterday. 

The Central Bank on September 14 imposed a new maximum leasing rate 70 percent of vehicles for all banks, finance and leasing companies.

Prior to this directive there was no limit imposed on leasing and potential owners could lease vehicles even at 100 percent of the value.