From 30 October 2026, banks, merchant banks and finance companies must apply MAS’s car-loan limits to loans and hire-purchase for individuals buying private hire cars, which were exempt before. For new cars the limits are 70% loan-to-value (OMV of S$20,000 or less), 60% above that, and a 7-year maximum tenure. Business-owned private hire cars, commercial vehicles and motorcycles stay exempt.
Mr Tan, an individual, signs an agreement on 3 November 2026 to buy a new car that he will register as a private hire car. The car’s open market value (OMV) is S$30,000. The price including the Certificate of Entitlement (COE) and taxes is S$150,000, and he gets no discount. Before 30 October, the loan-to-value, tenure and down-payment limits did not apply to a private hire car, so a bank could have lent him more than this (its credit-bureau check of him still applied). Now the limits apply.
| Which limit applies? | OMV is above S$20,000, so the 60% loan-to-value limit applies |
|---|---|
| Most the bank may lend | 60% of S$150,000 = S$90,000 |
| Mr Tan must pay from his own money | At least S$60,000, from funds that are not borrowed |
| Longest loan or hire-purchase | 7 years |
| If he had signed the purchase agreement on 28 October | Outside the new rule, because the purchase agreement came before 30 October |
What is the rule that is being extended?
MAS issues Notice 642 to banks under section 55 of the Banking Act 1970. It is dated 25 February 2013 and has been amended several times since. It sets three things for any loan or hire-purchase used to buy a motor vehicle: a cap on the loan as a share of the car’s price (the “Relevant Amount”, worked out as the loan-to-value percentage times the purchase price after any discount), a maximum tenure, and the buyer’s own cash contribution. In plain words, a bank may not lend more than the cap and must make sure the buyer puts down at least the rest, in money that is not borrowed. Notice 1113 sets the same rules for merchant banks, and Notice 829 for finance companies (issued under section 30 of the Finance Companies Act 1967).
For cars not previously registered in Singapore, the limits since 27 May 2016 are 70% where the OMV is S$20,000 or less, 60% where it is higher, and 7 years at most. Until now, the Notice excluded “private hire cars as described in the Second Schedule to the Road Traffic Act 1961”, alongside commercial vehicles and motorcycles. That exclusion, in paragraph 13, disapplied paragraphs 2 to 7, 8(a), 8(c) and 10 to 12: the loan cap, the tenure cap, the buyer’s own contribution, the declarations and two of the three credit bureau purposes. Paragraph 8(b), the credit bureau check on the borrower’s credit-worthiness, was not disapplied. The 70% and 60% figures are for cars not previously registered; for used cars the Notice values the car under a depreciation formula in its definition of “Relevant Amount”.
What changes on 30 October 2026?
BEFORE 30 OCTOBER
Any private hire car was outside the loan-to-value, tenure and down-payment limits (paragraph 13). The credit bureau check on the borrower still applied.
FROM 30 OCTOBER
A private hire car bought by an individual, including a sole proprietor, is treated like any other private car for financing.
Who must do what?
Banks, merchant banks and finance companies
Apply Notice 642, Notice 1113 or Notice 829 to qualifying private hire car loans and hire-purchase. Take the borrower’s written declaration on discounts and other credit facilities, run credit bureau checks, and keep documentary evidence of the OMV and dates.
Lenders financing through companies
Under paragraph 5, a bank lending to a company that on-lends for vehicles must take reasonable steps, including a written declaration, that the company follows the same limits.
Buyers
Individuals buying a private hire car now need a larger down payment and cannot stretch the loan beyond 7 years.
Which purchases are caught?
All three conditions below must be true for the exemption to fall away. A bank should be able to point to evidence for each (paragraph 13(a)(iii) of the Notice for loans, 13(b)(iii) for hire-purchase).
- The borrower is an individualIncluding an individual acting as a sole proprietor. Business-owned private hire cars remain exempt.
- The credit agreement is made on or after 30 October 2026For hire-purchase, the hire-purchase agreement itself is made on or after that date.
- The purchase agreement is on or after 30 October 2026If there is no purchase agreement, the test is whether the COE was obtained on or after 30 October 2026.
Our reading of what to do now: update loan origination rules so the private hire car flag no longer switches off the limit check, brief sales teams on the new down payment, and tell dealers and fleet platforms your branches work with.
When does it apply?
The amendments to Notices 642, 1113 and 829 took effect on 30 October 2026. MAS issued them on 29 October 2026, one day earlier.
Legal basis
- Power used
- Section 55 of the Banking Act 1970 (banks; merchant banks via section 55ZJ(1)); section 30 of the Finance Companies Act 1967 (finance companies)
- Instruments
- MAS Notice 642 (Amendment) 2026 for banks, Notice 1113 for merchant banks and Notice 829 for finance companies, each issued 29 October 2026 and effective 30 October 2026
- Applies to
- Banks, merchant banks and finance companies in Singapore
- Status
- Final and in force
Key facts
| Authority | Monetary Authority of Singapore (MAS) |
|---|---|
| Instruments | MAS Notice 642 (banks), Notice 1113 (merchant banks) and Notice 829 (finance companies), each amended 2026 |
| Issue date | 29 October 2026 |
| Effective date | 30 October 2026 |
| Limits | For new cars: 70% loan-to-value if OMV is S$20,000 or less; 60% if above; maximum tenure 7 years |
| Applies to | Banks, merchant banks and finance companies lending to individuals, including sole proprietors, to buy private hire cars |
| Still exempt | Business-owned private hire cars, commercial vehicles, motorcycles |
| Status | Final, in force |
| Last verified | 2 November 2026, against the text of MAS Notices 642, 1113 and 829 (amendments and, for 642, the consolidated Notice) |
Frequently asked questions
Are all private hire cars now subject to the car-loan limits?
No. Only those bought by an individual, including a sole proprietor, under agreements made on or after 30 October 2026. Business-owned private hire cars, commercial vehicles and motorcycles remain exempt.
How much must a buyer pay upfront?
At least the difference between the purchase price and the Relevant Amount, paid from money that is not borrowed. For a car with OMV above S$20,000 that is at least 40% of the price after any discount, and for a car with OMV of S$20,000 or less it is at least 30%.
Does the price include the COE?
Yes. Notice 642 defines the purchase price as the price of the vehicle, its relevant taxes and the price of the COE, as applicable.
I signed my purchase agreement before 30 October but the loan agreement is after. Which rule applies?
The exemption only falls away if the purchase agreement and the credit agreement are both on or after 30 October 2026, so a purchase agreement signed earlier stays outside the new limits. Check the dates with your bank’s documents.
Sources (official)
- MAS Notice 642 Motor Vehicle Loans (banks), Amendment Notes and downloads https://www.mas.gov.sg/regulation/notices/notice-642
- MAS Notice 642 (Amendment) 2026, issued 29 October 2026 (PDF) https://www.mas.gov.sg/-/media/mas-media-library/regulation/notices/ppd/notice-642/20261029-mas-notice-642-amendment-2026.pdf
- MAS Notice 642 Motor Vehicle Loans, last revised 29 October 2026 (PDF) https://www.mas.gov.sg/-/media/mas-media-library/regulation/notices/ppd/notice-642/2026-10-29-mas-notice-642.pdf
- MAS Notice 1113 Motor Vehicle Loans (merchant banks), Amendment Notes https://www.mas.gov.sg/regulation/notices/notice-1113
- MAS Notice 829 Motor Vehicle Loans (finance companies), Amendment Notes https://www.mas.gov.sg/regulation/notices/notice-829
- Singapore
- MAS
- Banking Regulations
- Notice 642
- Notice 1113
- Notice 829
- Private hire cars
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