China has released a plan to relax the loan ratios for personal vehicle purchases in a bid to boost consumption and trade-in of automobiles.

Financial institutions can independently determine the upper limits of loan ratios for personal gasoline cars and new energy vehicles (NEVs) purchases, according to the plan issued by the country's central bank and the National Financial Regulatory Administration.

Currently, the highest loan ratios for personal gasoline car and NEV purchases stand at 80 percent and 85 percent, respectively.

The ratios for both types of cars could be raised to 100 percent after the adjustment, according to persons in the automobile industry.

The loan ratios for purchases of commercial gasoline vehicles, NEVs and second-hand vehicles remain unchanged at 70 percent, 75 percent, and 70 percent, respectively, according to the plan.

Financial institutions are encouraged to step up innovation in financial products and services to adapt to the trade-in of vehicles as well as other new scenarios, and better support the reasonable demand for automobile consumption, said the plan.