MAS imposes restrictions on private 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.

In a nutshell, from 26 February 2013:

• Car-buyers can only take a 60% loan to buy a car that costs $20k or less.
• Car-buyers can only take a 50% loan to buy a car that costs more than $20k.
• Whichever it is, car-buyers can only take a 5-year loan.

The new restrictions do not apply to loans for either commercial vehicles or for motorcycles.

For re-financing facilities, only the cap on loan tenure applies.