Further details have been released on how the physically disabled will be exempted from the new curbs on car loan financing.
To qualify for the exemption - which applies for only one car per disabled person - the vehicle must be registered in the name of the borrower, which can either be the disabled person or the caregiver.
Financial institutions can apply to the Monetary Authority of Singapore (MAS) for the exemptions to be granted to an eligible borrower.
A written declaration saying that he has not already been granted exemption for an existing vehicle must be provided.
Applicants will be considered physically disabled if they meet one of the following criteria:
- They qualify for payout under the ElderShield Scheme or the Interim Disability Assistance Programme for the Elderly.
- Have been issued with a carpark label under the Car Park Label Scheme.
- Have been certified physically disabled and incapable of commuting by bus and MRT by a Ministry of Health appointed physician.
The MAS also said that it will take into account the depreciation in value of a used vehicle in determining the applicable loan-to-value ratio limit. It will adopt a straight-line depreciation in the value of the original Open Market Value (OMV) over 10 years.
The MAS added that this will address feedback received - with regards to the OMV recorded in original vehicle registration documents not being reflective of the depreciated value of a used motor vehicle.
