MAS eases car loan curbs

CAR buyers can take a bigger loan from Friday onwards.

The Monetary Authority of Singapore (MAS) will relax the more than three-year-old vehicle financing restrictions and allow buyers to borrow up to 70 per cent of the car price and pay it back over up to seven years instead of five years.

This is for cars with an open market value (OMV) of up to S$20,000. Previously, the maximum loan-to-value (LTV) ratio for such cars was 60 per cent.

For vehicles with an OMV above S$20,000, the LTV is now 60 per cent from 50 per cent previously. The maximum loan tenure is the same at seven years, and is also up from five years.

MAS said the adjustments follow the sustained moderation in certificate of entitlement (COE) premiums and in resulting inflationary pressures over the last three years.