As previously reported by Spot, Shavkat Mirziyoyev is conducting a video conference meeting focused on the work accomplished in 2024 and the main tasks for 2025 regarding the development of the service sector.
To expand the range of services, one taxi aggregator, whose name remains unspecified, has proposed to act as a guarantor for the issuance of 2,000 auto loans and suggested that this initiative could create 4,000 jobs.
As a result, the number of new vehicles providing taxi services will increase. Banks are prepared to allocate 1 trillion sums in loans for these projects.
During the meeting, it was noted that many car dealerships offer discounts on vehicle purchases for full upfront payments. However, according to current regulations, banks do not accept these discounts on vehicles financed through loans. If banks are allowed to consider these discounts, the interest rate on loans could decrease by 4%.
The head of state emphasized the importance of lifting this restriction for domestic vehicles when granting loans.
Furthermore, this year, a goal has been set to increase the volume of transportation services by 15% — reaching 185 trillion sums, and to boost their export to $2.2 billion.
In the first nine months of 2024, banks issued auto loans to the population totaling 12.79 trillion sums, which is 2.36 times less than in the corresponding period of 2023. In the third quarter, the issuance of auto loans plummeted by more than three times compared to the same period last year.
Against the backdrop of a significant decline in lending, automakers and dealers are taking measures to support demand. Some companies (GM Uzbekistan, BYD, and KIA) are introducing discounts on several models, while others (GM Uzbekistan, BYD, Cherry) are offering interest-free installments.
Why Auto Lending is Declining
In September 2023, the Central Bank tightened requirements for banks regarding the issuance of auto loans. The share of loans for vehicle purchases in the banks' loan portfolio should not exceed 25% due to risks associated with loan concentration.
As of July 1, the Central Bank tightened the requirements for granting loans to the public. The regulator introduced a debt burden indicator, calculated as the ratio of average loan payments to the borrower's average monthly income.
This parameter is already being used in micro-lending for individuals. The issuance of microloans has been limited to half the borrower's income.
As of July 1, the lending limit is set at 60%, and will be reduced to 50% starting in 2025.
Additionally, the Central Bank has tightened the requirements for granting mortgage and auto loans to citizens. When assessing the credit risk of borrowers, an additional indicator — the "loan/collateral" ratio — will be taken into account.
In July, the general director of the ADM Jizzakh car plant, Daniyar Davletiyarov, stated that the Central Bank has imposed "unofficial restrictions" on the issuance of auto loans. This year, he expects a 15% decline in car sales — down to 350,000 units.
Previously, Spot reported that the president instructed to simplify the process of issuing online loans.