MAS and MTI are looking into fake private-hire drivers for car loan “loophole”
The Monetary Authority of Singapore (MAS) has eased car loan guidelines in May earlier this year; allowing buyers of cars to borrow up to 70 per cent for cars with an open market value (OMV) of $20,000 or less. The maximum loan tenure has also been raised to 7 years.
Current car loan regulations
|Buyer’s name||Private-hire vehicles (e.g. Grab or Uber)|
|Borrow up to 70 per cent of the purchase price||Borrow up to 90 per cent of the purchase price|
|Loan tenure up to 7 years||Loan tenure up to 10 years|
However, despite this new guideline allowing car owners to loan more and with longer tenure some buyers are going against the rules. They registered their cars for private-hire under Uber or Grab and have no intention of being their drivers which will increase the limit they can borrow and extend their loan tenure longer.
It is important for drivers to note that abusing the systems may be faced with regulatory action by MAS.
You can avoid the hassles and loan commitments by choosing to rent a car from Ace Drive instead. Whether you are thinking of renting a car for short-term or long-term usage, you will never have to worry about repaying car loans and the tight car loan regulations in Singapore.