Regulatory Alerts2013-02-25
Added · Updated
Notice 642 Motor Vehicle Loans
Banks in Singapore are prohibited from granting credit facilities or entering into hire-purchase agreements for motor vehicles where the aggregate amount exceeds the Relevant Amount or where the tenure exceeds 7 years for agreements dated on or after 27 May 2016. Borrowers or hirers must contribute at least the difference between the purchase price and the Relevant Amount from funds not obtained through credit facilities, and banks must verify declarations and creditworthiness through credit bureau checks. The notice excludes commercial vehicles, motorcycles, dealer inventory financing, and specific facilities for physically disabled persons or their caregivers from these restrictions. Additionally, banks may exclude certain tenure extensions granted between 18 February 2020 and six months after the COVID-19 risk assessment was revised to Green when calculating compliance with tenure limits.
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