Authority Imposes Restrictions On Car Loans

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The Monetary Authority of Singapore is imposing restrictions on loans for private cars to safeguard against borrowers defaulting on their repayments. As of immediate, the central bank said consumers will be limited to borrowing 70 per cent of the purchase price of a motor vehicle. MAS’ guidelines on car loans, which restricted the maximum financing for the purchase of a car to 70% of its purchase price (inclusive of Certificate of Entitlement) and maximum tenor of the loan to 7 years. MAS’ Circular on Unsecured Credit Facilities to Individuals and on Car Loans circular (CIR No. BFIG 9/95).

22 January 2003 Update: MAS announced that the Restrictions On Car Loans is lifted (CIR. No. BD 6/2003). So now buyer can buy cars with 100% loans – zero percent down and overtrade practises are back again!

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