Car loan payments can be deferred if borrowers can get approval from the lending institution.
In its latest press release, the Monetary Authority of Singapore (MAS) said that car owners in need of a deferment can approach their bank or financial institution to agree on a repayment plan.
If a car loan deferment is granted, borrowers can ask to have the loan tenure extended by up to the corresponding deferment period. The aim is to ease the monthly instalments when regular payments are resumed.
Deferment for loan payments are not automatically granted, though. Banks and financial firms will have to conduct their own assessments to determine a borrower’s suitability.
Factors that will be taken into account include:
- The borrowers’ financial condition.
- The borrower’s 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).
If a deferment is granted, MAS says that “it will not cause the loan to be reflected as a restructured loan in the borrowers’ credit bureau report.”
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