Singapore government slaps loan curbs on individual private-hire car buyers
New rules include loan limits of up to 70% of the vehicle’s purchase price and maximum loan tenure of seven years
Effective October 30, residents of Singapore who purchase private-hire cars (PHCs) will now be subject to the same loan restrictions as regular car buyers. The Ministry of Transport, Monetary Authority of Singapore, Ministry of Energy, Trade and Industry, and Ministry of Law announced this change in response to an increase in individual owners using PHCs for personal use rather than providing rides.
The new rules stipulate that individuals may borrow up to 70% of a PHC's purchase price, with a maximum loan term of seven years. Vehicles with an open market value of S$20,000 or less can be financed up to 70% of the total price, including taxes and the Certificate of Entitlement (COE) premium. For PHCs valued above S$20,000, the maximum loan amount is reduced to 60% of the total price.
These restrictions apply to financing arrangements from financial institutions, licensed/exempt moneylenders, hire purchase or conditional sale agreements. The provisions do not cover commercial vehicles, PHCs owned by businesses, or motorcycles, but sole proprietors are still subject to the rules. The government aims to ensure that PHC purchases are not used to bypass financing restrictions intended for private car buyers, and to promote financial prudence among new PHC drivers.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Singapore government slaps loan curbs on individual private-hire car buyers businesstimes.com.sg
