MAS Notice 1113: Rules for Motor Vehicle Loans

MAS NOTICE 1113 29 June 2021 NOTICE TO MERCHANT BANKS BANKING ACT, CAP 19 (MAS Notice 1113 dated 25 February 2013 is cancelled with effect from 1 July 2021.) MOTOR VEHICLE LOANS

1. This Notice is issued pursuant to section 55 as applied by section 55ZJ(1) of the Banking Act (Cap. 19) (“the Act”) and applies to all merchant bank in Singapore (“Merchant Bank”). Total Credit Facilities and Tenure of Credit Facilities
2. A Merchant Bank must not – (a) grant any credit facility for the purchase of a motor vehicle to a Borrower where the aggregate of – (i) the amount granted under the credit facility; and (ii) the balance outstanding under any other credit facility granted to the Borrower for the purchase of that motor vehicle, exceeds the Relevant Amount; or (b) enter into any hire-purchase agreement for the hiring of a motor vehicle to a hirer where the aggregate of –

(i) the hire-purchase price; and (ii) the balance outstanding under any credit facility granted to the Borrower for the purchase of that motor vehicle, exceeds the Relevant Amount. 3. Where the date on which the agreement to purchase a motor vehicle is on or after 26 February 2013 but prior to 27 May 2016, or where there is no agreement to purchase the motor vehicle, the date on which the Borrower or hirer, as the case may be, successfully obtains a COE is on or after 26 February 2013 but prior to 27 May 2016, a Merchant Bank must not –

(a) grant any credit facility for the purchase of the motor vehicle to any Borrower where the tenure of the credit facility exceeds 5 years; (b) enter into any hire-purchase agreement for the hiring of the motor vehicle with any hirer where the period of hire exceeds 5 years; or (c) in the case where the Borrower has entered into any hire-purchase agreement for the hiring of the motor vehicle, grant any credit facility for the purchase of that motor vehicle to the Borrower, where the sum of – (i) the period of hire under the hire-purchase agreement; (ii) in the case where there is any subsequent hire-purchase agreement, the sum of – (A) the period of hire under the subsequent hire-purchase agreement; and (B) the period between the date the subsequent hire-purchase agreement is entered into and the date the first hire-purchase agreement was entered into for the hiring of the motor vehicle; and (iii) the tenure of the credit facility, exceeds 5 years. 4. Where the date on which the agreement to purchase a motor vehicle is on or after 27 May 2016, or where there is no agreement to purchase the motor vehicle, the date on which the Borrower or hirer, as the case may be, successfully obtains a COE is on or after 27 May 2016, a Merchant Bank must not – (a) grant any credit facility for the purchase of the motor vehicle to any Borrower where the tenure of the credit facility exceeds 7 years; (b) enter into any hire-purchase agreement for the hiring of the motor vehicle with any hirer where the period of hire exceeds 7 years; or (c) in the case where the Borrower has entered into any hire-purchase agreement for the hiring of the motor vehicle, grant any credit facility for the purchase of that motor vehicle to the Borrower, where the sum of – (i) the period of hire under the hire-purchase agreement; (ii) in the case where there is any subsequent hire-purchase agreement, the sum of – (A) the period of hire under the subsequent hire-purchase agreement; and (B) the period between the date the subsequent hire-purchase agreement is entered into and the date the first hire-purchase agreement was entered into for the hiring of the motor vehicle; and (iii) the tenure of the credit facility, exceeds 7 years.

Purchaser’s or Hirer’s Contribution 5. A Merchant Bank must not disburse monies under any credit facility for the purchase of a motor vehicle or enter into any hire-purchase agreement for the hiring of a motor vehicle, unless the Borrower or hirer, as the case may be, has paid out of monies not obtained through any credit facility, a sum not less than the difference between – (a) the purchase price of the motor vehicle; and (b) the Relevant Amount. 6. A Merchant Bank which – (a) grants a credit facility to any company; or (b) has granted a credit facility to any company, where such credit facility has not been fully utilised, for the purpose of enabling the company to – (a) grant a credit facility to any of its customers for the purchase of a motor vehicle; or (b) enter into a hire-purchase agreement with any of its customers for the hiring of a motor vehicle, must take reasonable steps to ensure that the company complies with paragraphs 2, 3, 4 and5 in respect of such credit facilities granted or hire-purchase agreements entered into by the company, as if the company is a Merchant Bank, which must include obtaining a written declaration from the company that the company will comply with paragraphs 2, 3, 4 and 5 in respect of such credit facilities granted or hire-purchase agreements entered into by the company with its customers, as if the company is a Merchant Bank. Verification by the Merchant bank Declaration 7. A Merchant Bank granting a credit facility for the purchase of a motor vehicle must obtain a written declaration from the Borrower on – (a) whether the Borrower received any discount, rebate or any other benefit from the vendor or any other person which has the effect of reducing the True Purchase Price and the amount of such discount, rebate or benefit, as the case may be; and (b) whether the Borrower has obtained any other credit facility for the purchase of the motor vehicle, and if so, the amount of such credit facility. 8. A Merchant Bank entering into a hire-purchase agreement for the hiring of a motor vehicle must obtain a written declaration from the hirer on whether the hirer has obtained any credit facility for the hiring of the motor vehicle, and if so, the amount of such credit facility.

Checks with Credit Bureaus 9. Prior to granting a credit facility for the purchase of a motor vehicle or entering into a hire-purchase agreement for the hiring of a motor vehicle, as the case may be, a Merchant Bank must conduct or cause to be conducted, comprehensive checks with one or more credit bureaus, on the information held by such parties, to – (a) verify the information obtained in the declaration from the Borrower under paragraph 7(b) or the hirer under paragraph 8, as the case may be;

(b) assess the credit-worthiness of the Borrower or the hirer, as the case may be; and (c) comply with paragraphs 2 and 5. Other Reasonable Steps 10. For the purpose of determining the Relevant Amount, a Merchant Bank must obtain documentary evidence to verify, where applicable, – (a) the date of the agreement to purchase the motor vehicle or the date on which the Borrower or hirer successfully bids for a COE, as the case may be;

(b) the open market value of the motor vehicle; and (c) the date of first registration of the motor vehicle outside Singapore and the date of first registration of the motor vehicle in Singapore1 . Re-financing Facilities and Subsequent Hire-Purchase Agreement 11. To avoid doubt, paragraphs 2 to 8, 9(a), 9(c) and 10 do not apply to a Re-financing Facility and a subsequent hire-purchase agreement. 12. A Merchant Bank may only grant a Re-financing Facility for the purchase of a motor vehicle where the sum of – (a) the tenure of the Re-financing Facility; (b) the period between the first time monies are disbursed under the Re-financing Facility and the first time monies were disbursed under the first credit facility granted to the Borrower for the purchase of that motor vehicle; (c) in the case where the Borrower has entered into any hire-purchase agreement for the hiring of that motor vehicle, the period of hire under the hire-purchase agreement; and

(d) in the case where there is any subsequent hire-purchase agreement, the sum of – (i) the period of hire under the subsequent hire-purchase agreement; and 1 The date of first registration of the motor vehicle outside Singapore and the date of first registration of the motor vehicle in Singapore, which are also known respectively as the “original registration date” and “first registration date”, can be found on the website www.onemotoring.com.sg.

(ii) the period between the date the subsequent hire-purchase agreement is entered into and the date the first hire-purchase agreement was entered into for the hiring of the motor vehicle, does not exceed 7 years. 13. Notwithstanding paragraph 12, where the date on which the agreement to purchase a motor vehicle is before 26 February 2013, or where there is no agreement to purchase a motor vehicle, the date on which the Borrower successfully obtains a COE is before 26 February 2013, a Merchant Bank may grant a Re-financing Facility for the purchase of the motor vehicle where the tenure of the Re-financing Facility does not exceed the remaining validity period of the COE of that motor vehicle. 14. A Merchant Bank may only enter into a subsequent hire-purchase agreement for the hiring of a motor vehicle where the sum of – (a) the period of hire under the subsequent hire-purchase agreement; and

(b) the period between the date the subsequent hire-purchase agreement is entered into and the date the first hire-purchase agreement was entered into for the hiring of that motor vehicle, does not exceed 7 years. 15. Notwithstanding paragraph 14, where the date on which the agreement to purchase a motor vehicle is before 26 February 2013, or where there is no agreement to purchase a motor vehicle, the date on which the hirer successfully obtains a COE is before 26 February 2013, a Merchant Bank may enter into a subsequent hire-purchase agreement for the hiring of the motor vehicle where the period of hire under the subsequent hire-purchase agreement does not exceed the remaining validity period of the COE of that motor vehicle. Excluded Facilities 16. Paragraphs 2 to 8, 9(a), 9(c) and 11 to 14 do not apply to – (a) any credit facility for the purchase of a Commercial Vehicle or a motorcycle; (b) any hire-purchase agreement for the hiring of a Commercial Vehicle or a motorcycle; (c) any credit facility granted to any dealer of motor vehicles solely for the purpose of enabling the dealer to purchase motor vehicles for sale; (d) any credit facility granted to any physically disabled person for the purchase of a motor vehicle or any hire-purchase agreement entered into with any physically disabled person for the hiring of a motor vehicle, as the case may be, where – (i) the motor vehicle is registered in the name of the physically disabled person; (ii) the physically disabled person and his caregivers do not have any existing motor vehicle, the credit facility for the purchase of which or hire-purchase agreement for the hiring of which is excluded under sub-paragraphs (d) and (e) respectively;

(iii) the Merchant Bank has obtained from the physically disabled person, prior to granting the credit facility or entering into the hire-purchase agreement, as the case may be – (A) a copy of the agreement to purchase the motor vehicle, to certify that the motor vehicle is registered in the name of the physically disabled person; (B) a front and back copy of the National Registration Identity Card of the physically disabled person; (C) a written declaration from the physically disabled person that the physically disabled person and his caregivers do not have any existing motor vehicle, the credit facility for the purchase of which or hire-purchase agreement for the hiring of which is excluded under sub-paragraphs (d) and (e) respectively; and (D) a copy of any of the following: (I) a letter certifying payment of claims to the physically disabled person under any severe disability insurance policy taken out with an approved insurer under the ElderShield Scheme; (II) a letter certifying payment of claims to the physically disabled person under the Interim Disability Assistance Programme for the Elderly; (III) a letter certifying payment of claims to the physically disabled person under the Pioneer Generation Disability Assistance Scheme; (IV) a letter from SG Enable granting a car park label which is valid at the time of application for the credit facility for the purchase of, or entering into a hire-purchase agreement for the hiring of, the motor vehicle, to the physically disabled person under the Car Park Label Scheme and a copy of the report by a fully registered medical practitioner which has been submitted to SG Enable, certifying that the physical disability of the person is permanent; (V) a medical assessment form completed by a rehabilitation physician practising in the Department of Rehabilitation Medicine at the Tan Tock Seng Hospital, certifying that the physically disabled person is permanently physically disabled but medically fit and functionally able to drive safely, together with a front and back copy of a driving licence of the physically disabled person; or (VI) a medical assessment form completed by a fully registered medical practitioner authorised by the Ministry of Health2 to certify that the physically disabled person is permanently physically disabled and requires maximal or total assistance in the mobility aspect of his activities of daily living, certifying that the physically disabled person is 2 The list of fully registered medical practitioners authorised by the Ministry of Health for this purpose is available on MAS’ website at <http://www.mas.gov.sg/~/media/MAS/FAQ/Aug%202014%20List%20of%20Appointed%20Medical%20Asse ssors.pdf>.

permanently physically disabled and requires maximal or total assistance in the mobility aspect of his activities of daily living; (iv) the Merchant Bank has obtained from the physically disabled person, as soon as practicable after the motor vehicle is registered, a copy of the vehicle registration details of the motor vehicle3 , to certify that the motor vehicle is registered in the name of the physically disabled person; (v) the Merchant Bank has, prior to granting the credit facility or entering into the hire-purchase agreement, as the case may be, submitted the documents referred to in sub-paragraph (d)(iii) to the Authority and has obtained the confirmation of the Authority that the credit facility or hire-purchase agreement, as the case may be, satisfies the conditions in sub-paragraph (d)(ii); and (vi) the Merchant Bank has submitted a copy of the vehicle registration details of the motor vehicle which it obtained under sub-paragraph (d)(iv) from the physically disabled person to the Authority as soon as practicable; and (e) any credit facility granted to any caregiver of a physically disabled person for the purchase of a motor vehicle or any hire-purchase agreement entered into with any caregiver of a physically disabled person for the hiring of a motor vehicle, as the case may be, where – (i) the motor vehicle is registered in the name of the caregiver of the physically disabled person; (ii) the physically disabled person, the caregiver and all other caregivers of the physically disabled person do not have any existing motor vehicle, the credit facility for the purchase of which or hire-purchase agreement for the hiring of which is excluded under sub-paragraphs (d) and (e) respectively; (iii) the Merchant Bank has obtained from the caregiver of the physically disabled person, prior to the granting of the credit facility or entering into the hire￾purchase agreement, as the case may be – (A) a copy of the agreement to purchase the motor vehicle, to certify that the motor vehicle is registered in the name of the caregiver of the physically disabled person; (B) a front and back copy of the National Registration Identity Card of the caregiver of the physically disabled person; (C) a front and back copy of the National Registration Identity Card of the physically disabled person; (D) a written declaration from the caregiver of the physically disabled person that the physically disabled person, the caregiver and any other caregiver of the physically disabled person do not have any existing motor vehicle, the credit facility for the purchase of which or hire-purchase agreement for the hiring of which is excluded under sub-paragraphs (d) and (e) respectively; 3 This can be downloaded from the website www.onemotoring.com.sg.

(E) where the caregiver of the physically disabled person does not have the same address on his National Registration Identification Card as the physically disabled person, a copy of any of the following, where applicable: (I) documentary proof that the caregiver of the physically disabled person and the physically disabled person have a familial relationship or in the case where there is no documentary proof, a written declaration from the caregiver of the physically disabled person that he has a familial relationship with the physically disabled person; or (II) an order of court appointing the caregiver of the physically disabled person as a deputy of the physically disabled person under section 24 of the Mental Capacity Act (Cap. 177A); and (F) a copy of any of the following: (I) a letter certifying payment of claims to the physically disabled person under any severe disability insurance policy taken out with an approved insurer under the ElderShield Scheme; (II) a letter certifying payment of claims to the physically disabled person under the Interim Disability Assistance Programme for the Elderly; (III) a letter certifying payment of claims to the physically disabled person under the Pioneer Generation Disability Assistance Scheme; (IV) a letter from SG Enable granting a car park label which is valid at the time of application for the credit facility for the purchase of, or entering into a hire-purchase agreement for the hiring of, the motor vehicle, to the physically disabled person under the Car Park Label Scheme and a copy of the report by a fully registered medical practitioner which has been submitted to SG Enable, certifying that the physical disability of the person is permanent;

(V) a medical assessment form completed by a rehabilitation physician practising in the Department of Rehabilitation Medicine at the Tan Tock Seng Hospital, certifying that the physically disabled person is permanently physically disabled but medically fit and functionally able to drive safely, together with a front and back copy of a driving licence of the physically disabled person; or (VI) a medical assessment form completed by a fully registered medical practitioner authorised by the Ministry of Health to certify that the physically disabled person is permanently physically disabled and requires maximal or total assistance in the mobility aspect of his activities of daily living, certifying that the physically disabled person is permanently physically disabled and requires maximal or total assistance in the mobility aspect of his activities of daily living; (iv) the Merchant Bank has obtained from the caregiver of the physically disabled person, as soon as practicable after the motor vehicle is registered, a copy of the vehicle registration details of the motor vehicle, to certify that the motor

vehicle is registered in the name of the caregiver of the physically disabled person; (v) the Merchant Bank has, prior to granting the credit facility or entering into the hire-purchase agreement, as the case may be, submitted the documents referred to in sub-paragraph (e)(iii) to the Authority and has obtained the confirmation of the Authority that the credit facility or hire-purchase agreement, as the case may be, satisfies the conditions in sub-paragraph (e)(ii); and (vi) the Merchant Bank has submitted a copy of the vehicle registration details of the motor vehicle which it obtained under sub-paragraph (e)(iv) from the caregiver of the physically disabled person to the Authority as soon as practicable. 17. For the purposes of paragraphs 3, 4, 12 to 15, where – (a) a Merchant Bank has granted a credit facility (including a Re-financing Facility) for the purchase of a motor vehicle or entered into a hire-purchase agreement (including a subsequent hire-purchase agreement) for the hiring of a motor vehicle, prior to 6 May 2020; and (b) a Borrower or the hirer, as the case may be, has at any time during the period beginning on 18 February 2020 and ending 6 months after the date the Ministry of Health announces its revision of its risk assessment of the Disease Outbreak Response System Condition to “Green” in respect of COVID-19, requested for a change in the terms of the credit facility or hire-purchase agreement, resulting in the tenure or period of hire, as the case may be, to be extended by no longer than 12 months, the Merchant Bank may exclude the period of extension of the tenure or period of hire referred to in sub-paragraph (b) in calculating the tenure of the credit facility or hire period of the hire-purchase agreement, as the case may be. 18. For the purposes of paragraphs 3, 4, 12 to 15, where – (a) a Merchant Bank has granted a credit facility (including a Re-Financing Facility) (“original credit facility’) for the purpose of a motor vehicle or entered into a hire￾purchase agreement (including a subsequent hire-purchase agreement) (“original hire￾purchase agreement”) for the hiring of a motor vehicle, prior to 6 May 2020; (b) a Borrower or hirer, as the case may be, has at any time during the period beginning on 18 February 2020 and ending 6 months after the date the Ministry of Health announces its revision of its risk assessment of the Disease Outbreak Response System Condition to “Green” in respect of COVID-19, requested for a change in the terms of the original credit facility or original hire-purchase agreement, which would result in the tenure or period of hire, as the case may be, to be extended by no longer than 12 months; (c) a Re-financing facility (“relevant Re-financing Facility”) is granted or subsequent hire￾purchase agreement (“relevant hire-purchase agreement”) is entered into, to give effect to the Borrower or hirer’s request in sub-paragraph (b); and (d) the tenure of the relevant Re-financing facility or period of hire of the relevant hire￾purchase agreement does not exceed the sum of the maximum tenure or period of hire

in paragraphs 3, 4, 12, 13, 14 or 15 (as the case may be) and the period of extension of the tenure or period of hire referred to in sub-paragraph (b), the Merchant Bank may exclude the period of extension of the tenure or period of hire referred to in sub-paragraph (b) in calculating the tenure of the relevant Refinancing Facility or the period of hire of the relevant hire-purchase agreement, as the case may be. 19. Paragraphs 3, 4, 12 to 15 do not apply to any credit facility, Re-financing Facility, hire￾purchase agreement, or subsequent hire-purchase agreement (individually referred to as a “relevant Facility”) that the Merchant Bank may grant or enter into, where – (a) a period of extension of tenure of any credit facility or Re-financing Facility granted to the Borrower or hirer, or a period of extension of hire-period of any hire-purchase agreement or subsequent hire-purchase agreement that the Borrower or hirer had entered into, had been excluded in accordance with paragraph 17 or 18, as the case may be; and (b) the tenure or period of hire (as the case may be) of the relevant Facility does not exceed the sum of the maximum tenure or maximum period of hire that would have been applicable under paragraph 3, 4, 13, 14 or 15 (as the case may be), but for this paragraph, and the period excluded under paragraph 17 or 18, as the case may be. Definitions and Interpretations 20. In this Notice, (a) “approved insurer” has the same meaning as defined in regulation 2 of the Central Provident Fund (Withdrawals for ElderShield Scheme) Regulations; (b) “Borrower” means any person applying for a credit facility; (c) “Car Park Label Scheme” means a scheme administered by SG Enable which provides for – (i) a person who is driving a motor vehicle and has a physical disability or medical condition with mobility constraints, requiring the use of a bulky mobility aid; or (ii) a person ferrying a person with physical disability or medical condition with mobility constraints, requiring the use of a bulky mobility aid, to park at designated parking lots reserved for such use; (d) “caregiver of a physically disabled person” or “caregiver of the physically disabled person” means any person who – (i) has the same address on his National Registration Identity Card as the physically disabled person; (ii) has a familial relationship with the physically disabled person; or (iii) is a deputy appointed by the court under section 24 of the Mental Capacity Act (Cap. 177A) for the physically disabled person;

(e) “COE” means the Certificate of Entitlement and is a permit issued by the Registrar of Vehicles under section 10A of the Road Traffic Act (Cap. 276); (f) “Commercial Vehicle” means a vehicle in Singapore that is a – (i) goods vehicle as defined in section 2 of the Road Traffic Act (but does not include a goods-cum-passengers vehicle as defined in rule 2 of the Road Traffic (Motor Vehicles, Registration and Licensing) Rules); (ii) omnibus, school bus, private hire bus, excursion bus or private bus, as described in the Second Schedule to the Road Traffic Act; (iii) engineering plant, such as a tractor, a road roller, an excavator, a forklift, a dumper, a grader, a concrete pump, a dozer, a loader, a skidder, a compactor, a scrapper, a pipe-layer, a handcraft, a pax step or an airport service equipment; or (iv) private hire car or taxi, as described in the Second Schedule of the Road Traffic Act; (g) “ElderShield Scheme” has the same meaning as defined in regulation 2 of the Central Provident Fund (Withdrawals for ElderShield Scheme) Regulations; (h) “driving licence” has the same meaning as defined in section 2 of the Road Traffic Act (Cap. 276); (i) “fully registered medical practitioner” has the same meaning as defined in section 2 of the Medical Registration Act (Cap. 174); (j) “hirer” means any person who takes or has taken a motor vehicle from a Merchant Bank under a hire-purchase agreement; (k) “hire-purchase agreement” means an agreement, under which – (i) a motor vehicle is bailed to the hirer in return for periodical payments; and (ii) the property in the motor vehicle will pass to the hirer if the terms of the agreement are complied with and one or more of the following occur: (A) the exercise of an option to purchase by the hirer; (B) the doing of any other specified act by any party to the agreement; (C) the happening of any other specified event; (l) “hire-purchase price” means the total sum payable by the hirer under a hire￾purchase agreement in order to complete the purchase of a motor vehicle to which the agreement relates, exclusive of any sum payable as a penalty or as compensation or damages for a breach of the agreement; (m) “Interim Disability Assistance Programme for the Elderly” means a government assistance scheme providing financial help to needy and disabled elderly Singaporeans, who were not eligible to join the ElderShield Scheme because of their age or pre-existing disabilities.

(n) “motor vehicle” has the same meaning as defined in section 2 of the Road Traffic Act; (o) “OMV” or “open market value” means the value of a motor vehicle as determined by the Registrar in accordance with rule 7(3) of the Road Traffic (Motor Vehicles, Registration and Licensing) Rules; (p) “physically disabled person” means any person who – (i) qualifies for the payment of claims under any severe disability insurance policy taken out with an approved insurer under the ElderShield Scheme; (ii) qualifies for the payment of claims under the Interim Disability Assistance Programme for the Elderly; (iii) qualifies for the payment of claims under the Pioneer Generation Disability Assistance Scheme; (iv) holds a car park label under the Car Park Label Scheme administered by SG Enable, and whose disability has been assessed by a fully registered medical practitioner to be permanent; (v) is certified by a rehabilitation physician practising in the Department of Rehabilitation Medicine at the Tan Tock Seng Hospital to be permanently physically disabled but medically fit and functionally able to drive safely for the purposes of excluding any credit facility granted to or hire-purchase agreement entered into with a physically disabled person or a caregiver of a physically disabled person under paragraphs 16(d) and (e) respectively; or (vi) is certified by a fully registered medical practitioner authorised by the Ministry of Health to certify that the physically disabled person is permanently physically disabled and requires maximal or total assistance in the mobility aspect of his activities of daily living, to be permanently physically disabled and requires maximal or total assistance in the mobility aspect of his activities of daily living; (q) “Pioneer Generation Disability Assistance Scheme” means the government assistance scheme, administered by the Agency for Integrated Care, providing financial help to pioneers with moderate to severe functional disability; (r) “purchase price”, in relation to a motor vehicle, means the aggregate of the price of the motor vehicle, its relevant taxes and the price of the COE as applicable; (s) “Re-financing Facility” in relation to a motor vehicle, means a credit facility granted for the sole purpose of enabling the Borrower to repay – (i) the balance outstanding under a credit facility obtained by the Borrower for the purchase of that motor vehicle; or (ii) the balance outstanding under a Re-financing Facility in respect of that motor vehicle; (t) “Relevant Amount”, in relation to the purchase or hiring of a motor vehicle, as the case may be, under a scenario specified in the second column of the tables below, means LTV% x [purchase price – amount of discount, rebate, or any other benefits

offered by the vendor of the motor vehicle or any other person], where “LTV%” is the loan-to-value ratio specified in the first column of the tables: LTV% Scenario 60% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the OMV is $20,000 or less; (b) the date on which the agreement to purchase the motor vehicle is on or after 26 February 2013 but prior to 27 May 2016, or where there is no agreement to purchase the motor vehicle, the date on which the Borrower or hirer, as the case may be, successfully obtains a COE is on or after 26 February 2013 but prior to 27 May 2016; and (c) the motor vehicle has not been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276). 50% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the OMV is more than $20,000; (b) the date on which the agreement to purchase the motor vehicle is on or after 26 February 2013 but prior to 27 May 2016, or where there is no agreement to purchase the motor vehicle, the date on which the Borrower or hirer, as the case may be, successfully obtains a COE is on or after 26 February 2013 but prior to 27 May 2016; and (c) the motor vehicle has not been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276). 70% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the OMV is $20,000 or less; (b) the date on which the agreement to purchase the motor vehicle is on or after 27 May 2016, or where there is no agreement to purchase the motor vehicle, the date on which the Borrower or hirer, as the case may be, successfully obtains a COE is on or after 27 May 2016; and (c) the motor vehicle has not been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276). 60% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where –

(a) the OMV is more than $20,000; (b) the date on which the agreement to purchase the motor vehicle is on or after 27 May 2016, or where there is no agreement to purchase the motor vehicle, the date on which the Borrower or hirer, as the case may be, successfully obtains a COE is on or after 27 May 2016; and (c) the motor vehicle has not been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276). LTV% Scenario 60% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the value of {OMV – [(a - b)/(120 - b)] x OMV} is $20,000 or less; (b) the date on which the agreement to purchase the motor vehicle is on or after 26 February 2013 but prior to 27 May 2016; and (c) the motor vehicle has been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276), where – “a” is the date of the agreement to purchase the motor vehicle minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month; and “b” is the date of first registration of the motor vehicle in Singapore minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month. 50% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the value of {OMV – [(a - b)/(120 - b)] x OMV} is more than $20,000; (b) the date on which the agreement to purchase the motor vehicle is on or after 26 February 2013 but prior to 27 May 2016; and (c) the motor vehicle has been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276), where – “a” is the date of the agreement to purchase the motor vehicle minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month; and

“b” is the date of first registration of the motor vehicle in Singapore minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month. 70% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the value of {OMV – [(a - b)/(120 - b)] x OMV} is $20,000 or less; (b) the date on which the agreement to purchase the motor vehicle is on or after 27 May 2016; and (c) the motor vehicle has been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276), where – “a” is the date of the agreement to purchase the motor vehicle minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month; and “b” is the date of first registration of the motor vehicle in Singapore minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month. 60% In the case of a credit facility granted for the purchase of a motor vehicle or a hire-purchase agreement entered into for the hiring of a motor vehicle, as the case may be, where – (a) the value of {OMV – [(a - b)/(120 - b)] x OMV} is more than $20,000; (b) the date on which the agreement to purchase the motor vehicle is on or after 27 May 2016; and (c) the motor vehicle has been registered before with the Registrar under section 10 of the Road Traffic Act (Cap. 276), where – “a” is the date of the agreement to purchase the motor vehicle minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month; and “b” is the date of first registration of the motor vehicle in Singapore minus the date of first registration of the motor vehicle outside Singapore, rounded down to the nearest month.

(u) “Registrar” has the same meaning as in section 2 of the Road Traffic Act (Cap. 276); (v) “severe disability insurance policy” has the same meaning as defined in regulation 2 of the Central Provident Fund (Withdrawals for ElderShield Scheme) Regulations;

(w) “subsequent hire-purchase agreement” in relation to a motor vehicle, means a hire￾purchase agreement entered into by the hirer with a Merchant Bank, bank, finance company or any other company for the sole purpose of enabling the hirer to terminate its hire-purchase agreement with that Merchant Bank, bank, finance company or company or any other Merchant Bank, bank, finance company or company and to hire that motor vehicle from the first-mentioned Merchant Bank, bank, finance company or company; (x) “True Purchase Price” means the amount which is paid out-of-pocket by a Borrower for the purchase of a motor vehicle and includes any amount paid to a Merchant Bank by a Borrower in connection to obtaining credit facilities for the purchase of the motor vehicle. To avoid doubt, True Purchase Price does not include any amount that is paid out of funds obtained through any credit facility; (y) A reference to credit facilities granted for the purchase of a motor vehicle includes any credit facilities granted in connection with the purchase of that motor vehicle. (z) Where a credit facility is granted to joint Borrowers, a reference to “Borrower” must be read accordingly to refer to the joint Borrowers, except that in paragraphs 2(a)(ii), 7 and 9, such a reference must be read to also refer to each Borrower. (aa)Where a hire-purchase agreement is entered into by joint hirers, a reference to “hirer” must be read accordingly to refer to the joint hirers, except that in paragraphs 2(b), 8 and 9, such reference must be read to also refer to each hirer. (bb) A caregiver of a physically disabled person and the physically disabled person have a familial relationship if the caregiver is the parent, child, grandparent, grandchild, spouse or sibling of the physically disabled person. (cc) The expressions used, except where expressly defined in this Notice or where the context otherwise requires, have the same meaning as in the Act. Effective Date 21. This Notice shall take effect on 1 July 2021.