What is a sale prohibition and is it mandatory on every car loan? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is a sale prohibition and is it mandatory on every car loan?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

A sale prohibition is a legal measure the bank places on the car licence to prevent you from selling it until you repay the loan. It is mandatory on most programs, but banks do offer “no sale prohibition” programs for customers who pay a large down payment (above 50%) or who hold savings instruments.

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