Singapore extends car-loan limits to private-hire buyers
From 30 October, individual buyers including sole proprietors must check 70% or 60% loan ceilings, a seven-year cap and purchase-date triggers; business-owned fleets and taxis remain exempt.
An individual buying a Singapore private-hire car must now check the vehicle financing ceiling before committing to a qualifying purchase. The 29 October government announcement extends private-car financing limits to individual-owned private-hire cars, including those bought by sole proprietors, from 30 October. Business-owned private-hire cars and taxis remain exempt.
Calculate the ceiling: The maximum loan-to-value ratio is 70% for an Open Market Value of S$20,000 or less and 60% above it. The maximum tenure is seven years. The loan-to-value calculation uses the purchase price including applicable taxes and Certificate of Entitlement cost.
Check the trigger: The limits apply to a sales agreement signed on or after 30 October. If there is no sales agreement, a Certificate of Entitlement obtained on or after that date is the trigger. The policy covers loans from financial institutions and licensed or exempt moneylenders, plus hire purchase and conditional sale arrangements.
For owner-drivers and lenders, the decision is which ownership and purchase route applies before calculating a deposit and repayment plan. The announcement gives no basis to infer approval for an individual applicant, a change in private-hire supply or any fare effect.
