The Monetary Authority of Singapore (MAS) has reintroduced financing restrictions on motor vehicle loans granted by financial institutions.
The financial restrictions include limits on vehicle loan amount and cap on the loan tenure for private vehicles.
Effective 26 February 2013, the maximum loan amount will depend on the open market value (OMV) of the motor vehicle purchased.
For a vehicle with open market value (OMV) that does not exceed $20,000, the maximum loan-to-value is 60% of the purchase price, including relevant taxes and COE. As for vehicles with OMV of more than $20,000, which includes most cars in the market, maximum loan will be capped at 50%.
The length of a loan will also be capped at five years as well.
All the above financing restrictions will not apply to loans for the purchase of commercial vehicles and motorcycles. As for re-financing facilities, only the 5-year cap on loan tenure applies
“The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles,” MAS said in a statement.
With these financing restrictions, all car buyers will now require more upfront cash payment to buy their dream ride. However, there are still some exceptional financing options that are being offered by a local credit company in Singapore, Speed Credit, which are 100% MAS Rules Compliant.
Speed Credit’s Special Financing Options
1.) Lowest In-House Car Loan Interest Rate of 1.68% and 188% by Speed Credit.
2.) Up to 9 Years of Loan Tenure.
3.) Up to 80% Financing of the Purchase Price.
If you need any assistance on your car loan or would like to make an inquiries regarding this financing options, please call us at +65 6444 4400. Alternatively, you can call Hui Ying / Ming Xi at +65 9851 8281.