All About Loan In Singapore
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How You Can Get A Higher Car Loan After Budget 2013

What happened to the car loan market?

In budget 2013, the following were applied to the market for vehicles

  • Car loans are now restricted to 60% financing for cars with open market value (OMV) of $20,000 or below
  • 50% financing, if OMV is above $20,000
  • Maximum loan tenure of five years

Here are some loopholes that might still be available to you if you move fast,

1) Financial institutions

Financial institutions are different from banks. Yes they lend out money. But they do not operate as banks and therefore are not under the same rules and restrictions as banks.

2) Personal loans

Personal loans are supposedly offered to applicants with no restrictions on usage. This is at least what the marketers try to portray.

3) Licensed money lenders

Money lenders operate on a different playing field altogether. They are flexible with loans and can grant you any amount as long as you demonstrate an ability to repay. But their interest rates are definitely higher that what you can find from any bank or financial institution.

Owning a car not only provides you convenience but is now a sign of social status as well. But be careful of stretching yourself too thin when buying one. If your personal finances are too unstable  to take up a huge loan for car purchase, consider letting go of the idea altogether.