Morocco to End 0% Auto Loan Rates, Citing Financial Risks

17 March 2019 – byAmine · 1 min read

This will certainly displease many! Media sources claim that 0% interest rates on auto loans will disappear next month from the credit options offered to automotive customers. They will be stopped by Bank Al-Mahgrib. In other words, "prohibited".

The reason is the Professional Association of Financing Companies (APSF) which considers this type of product to be "toxic". Not for the consumer, no! But for the credit institutions... Even the vehicle importers are not complaining about it.

Thus we can read on the infomédiaire website: "According to our information, the Professional Association of Financing Companies (APSF) has officially contacted the Association of Importers of Assembled Automotive Vehicles (AIVAM) to inform them of the deficit situation of the files financed at 0% and the future cessation of this type of financing".

In addition, the 0% rate "would seriously impair the profitability of credit institutions which have been ordered by Bank Al-Maghrib to stop it".

The same source adds that this cessation of the financing formula should take place not in 2 years or 6 months, but next month, in April 2019, following the complaints of the credit institutions...

Category: Economy

Keywords:

Banks Consumption