Dhaka, May 6 -- Bangladesh Bank has expanded consumer financing limits allowing banks to offer higher auto and personal loans in a move aimed at supporting rising consumer demand and encouraging the use of environmentally friendly vehicles in the country.

In a notification issued on Tuesday, the central bank said all scheduled banks can now provide auto loans of up to Tk 8.0 million for purchasing electric and hybrid vehicles, up from the previous ceiling of Tk 6.0 million for conventional automobiles.

The central bank also eased equity requirements for green vehicles and raised the personal loan limits in response to increasing prices of consumer goods.

"The demand and usage of electric and hybrid vehicles are steadily increasing in t...