The Monetary Authority of Singapore (MAS) will introduce financing restrictions on car loans granted by financial institutions.

After the introduction, the maximum car loan amount will depend on the open market value (OMV) of the motor vehicle purchased:

For vehicle with OMV that does not exceed $20,000, the maximum loan-to-value (LTV) is 60% of the purchase price, including relevant taxes and the price of the Certificate of Entitlement, where applicable and for vehicle with OMV of more than $20,000, the maximum loan to value is 50%.

On top of this, the tenure of a car loan will now be capped at 5 years.