Singapore Caps Private Hire Car Loans at 60 to 70 Percent

Singaporean authorities have introduced new financing restrictions for private hire cars purchased by individuals, aiming to close a regulatory gap. Previously, these vehicles were exempt from standard car loan limits, a policy initially justified by their commercial use. However, a recent rise in registrations for individually owned self-drive private hire cars, reaching approximately 500 per month, prompted a review.

The primary concern reported is that some buyers were registering these vehicles without intending to provide private hire services, instead using the exemption to obtain larger loans than would be available for personal car purchases. The new rules, which apply to sales agreements signed or Certificates of Entitlement obtained on or after 30 October 2026, will cap loans at 70 percent for vehicles with an Open Market Value (OMV) of S$20,000 or less, and 60 percent for those above S$20,000. All financing arrangements will also be capped at seven years.

These restrictions cover various financing types from financial institutions and moneylenders, including hire purchase and conditional sale agreements. While sole proprietors are included, business-owned private hire cars, commercial vehicles, and motorcycles remain exempt. The government considered a separate COE category for private hire companies but decided against it, citing potential increases in vehicle rental costs and passenger fares. Authorities will continue to monitor financing practices, including in-house loans, and collaborate with platform operators to ensure compliance.