MAS: Consumers can apply to defer payments on car loans from banks

Individuals will now be given the option to request for a temporary halt on payments for their car loans, subject to approval from their lenders, following a move by the Monetary Authority of Singapore (MAS) to ease cash flow concerns arising from the COVID-19 pandemic with a second set of relief measures for individuals.

In a release published on 30 April 2020, the MAS stated, "Borrowers with car loans who are in need of payment deferment can approach their respective banks and finance companies to discuss suitable repayment plans." It also added that, "the bank or finance company will take into account factors such as the borrowers' financial condition, need for the use of a motor vehicle, current market value of the motor vehicle and its estimated market value after the deferment period (if applicable)."

Those that opt for a deferment on a car loan during this period will also not have the loan reflected as a restructured loan in their borrowers' credit bureau report.

OCBC Bank also announced on 30 April 2020 that with car loans being added to its Singapore COVID-19 Relief Programme, individuals who require assistance to defer their car loan payments will be granted a three-month payment deferment, so long as they have not missed more than one instalment payment.

It stated that a three-month deferment period ensures that the revised instalment amount does not increase too significantly so as to cause stress at future monthly instalments.