By MoneyBees
Work out the instalment, total interest and EIR on a van, lorry or bus loan from a flat rate, with the latest Cat C COE, a goods vehicle's 5% ARF and CVES, and why MAS's car loan limits do not apply.
No. MAS's limits of 70% or 60% of the price and a 7-year tenure do not apply to commercial vehicles or motorcycles. The lender sets the downpayment and tenure for a goods vehicle or bus.
Most are quoted at a flat rate. Interest = amount borrowed x flat rate x years. Add it to the amount borrowed and divide by the number of months. S$72,000 at 2.78% over 7 years is S$14,011.20 interest and about S$1,023.94 a month.
Flat-rate interest is charged on the full amount for the whole loan, even as you pay it down. The effective interest rate counts the falling balance, so it comes out close to double the flat rate.
Category C covers goods vehicles and buses. They can also use a Category E (open) COE. A COE lasts 10 years.
Yes, for 10 years at the full prevailing quota premium or 5 years at half of it. After the first 5-year renewal, further renewals are 5 years at a time, and none past the vehicle's statutory lifespan of 20 years for a goods vehicle.
A S$350 registration fee and an ARF of 5% of the OMV. Goods vehicles pay no excise duty. Light goods vehicles up to 3.5 tonnes may get a CVES incentive or pay a surcharge based on emissions.
The Commercial Vehicle Emissions Scheme for light goods vehicles up to 3.5 tonnes. For vehicles registered from 1 Apr 2025 to 31 Mar 2027, Band A gets a S$15,000 incentive, Band B nothing and Band C pays a S$20,000 surcharge.
Enterprise Singapore's EFS covers some equipment and working capital loans through participating lenders. Ask the lender whether a vehicle loan qualifies; MoneyBees does not quote EFS terms here.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).