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Guidance & FAQs
Sri Lanka Vehicle Lease & Housing Loan FAQs
What is Debt Service Ratio (DSR) in Sri Lanka?
DSR represents the percentage of your monthly net disposable salary allocated toward loan EMIs and lease installments. The Central Bank of Sri Lanka (CBSL) and licensed banks generally recommend keeping total DSR below 40% to 50% to ensure high loan approval chances.
How does flat rate vehicle leasing differ from reducing balance loans?
In Sri Lanka, automotive leasing from finance companies and banks is typically quoted on a flat rate basis, where annual interest is charged on the original principal for the entire tenure. Housing loans use a reducing balance amortization formula where interest decreases as you repay principal.
Can I apply for a joint loan if my DSR exceeds 50%?
Yes. Most Sri Lankan banks allow you to add a spouse or close family member as a co-borrower to combine monthly incomes and reduce your total DSR within approved limits.