27 May 2016

MAS Eases Rules On Car Financing

With effect from 27 May 2016, the Monetary Authority of Singapore (MAS) will ease financing restrictions on passenger car loans.

The restrictions were introduced in 2013 to encourage financial prudence among car buyers as well as to moderate demand for COE and cars. Since then, studies by the authorities have shown that inflation has eased and motor loans have declined.

Consequently, the easing of the financing restrictions will allow a car buyer to obtain a higher maximum amount of loan and repay over a longer time period.

The revisions are summarized in the following table.

*Source: Monetary Authority of Singapore & Channel News Asia