Loan to Replace Old Trucks Adjusted to Cope with Coronavirus

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In response to the economic impact of the COVID-19 pandemic, the EPA has been working with banks to provide temporary loan relief for new vehicle purchases that have been made to replace old diesel trucks. The relief plan allows vehicle owners who have difficulty meeting these loan payments to extend the interest-only payment periods to up to two years, or loan terms to five years. The EPA is prepared to face the current predicament with other enterprises and will continue providing interest subsidies for applicants to the diesel vehicle replacement incentive program.

To encourage the phasing out of old diesel vehicles and reduce the financial burden of individuals and small-and-medium-sized enterprises (SMEs), the EPA amended the Low Carbon Sustainable Homeland Program Implementation Guidelines Regarding Loans and Guarantees on 28 May 2019. The revised guidelines provide credit guarantees for individuals or enterprises that wish to purchase a new vehicle to replace their old diesel trucks categorized under Phase 1 to 3 of the vehicle emission standards. Furthermore, the Subsidy Regulations for Replacing Large Diesel Vehicle Loans were promulgated on 31 May 2019 to subsidize up to one percent of loan interest for vehicle purchases that fall under Phase 1 to 3 diesel truck trade-ins. As of February 2020, the EPA approved 22 credit guarantees and 105 subsidized loan applications.

Since the recent coronavirus outbreak, many vehicle owners are unable to make payments due to the loss of income. To cope with this issue, the EPA has sought assistance from all relevant government agencies and 12 domestic banks and came up with a relief package that allows those in need to adjust loan terms and payment methods.

Excerpt from Environmental Policy Monthly, 23 (3)

Source:
Environmental Protection Administration, R.O.C.(Taiwan)
Updated:
2020-10-29
Hit:
20
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