Regulatory Alerts2021-06-29
Added · Updated
MAS Notice 1113: Rules for Motor Vehicle Loans
MAS Notice 1113 imposes restrictions on Merchant Banks in Singapore regarding motor vehicle credit facilities and hire-purchase agreements. The Notice prohibits granting facilities where the aggregate amount exceeds the Relevant Amount or where the tenure exceeds 5 years for agreements dated before 27 May 2016, and 7 years for those on or after that date. Merchant Banks must ensure borrowers contribute at least the difference between the purchase price and the Relevant Amount, verify borrower declarations against credit bureau data, and obtain documentary evidence for vehicle valuation and registration dates. Specific exclusions apply to commercial vehicles, motorcycles, dealer financing, and facilities for physically disabled persons or their caregivers under defined conditions.
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