SINGAPORE - The Monetary Authority of Singapore (MAS) will ease restrictions on the financing of motor vehicles from May 27 this year.
It said in a statement on Thursday (May 26) that the maximum loan-to-value (LTV) ratios and loan tenure for motor vehicle will be eased following the loan restrictions introduced in 2013 to moderate the demand for cars.
Ong Chong Tee, deputy managing director of MAS said: "In 2013, when we introduced the measures, our immediate aim was to help restrain escalating COE premiums and consequent inflationary pressures. Since then, demand conditions have moderated and it is timely to ease the measures".
The new development means that those who buy vehicles that cost less than or equal to $20,000 would be able to take a loan for 70 per cent of the vehicle cost as opposed to 60 per cent.
Meanwhile, those seeking to buy vehicles which cost more than $20,000 would be able to take a loan for 60 per cent of the vehicle as opposed to 50 per cent.
The loan tenure for both categories has also been raised from five to seven years.