Written reply to Parliamentary Question on motorcycle loans with zero downpayment
Date: For Parliament Sitting on 28 February 2023
Name and Constituency of Member of Parliament
Ms Mariam Jaafar, MP, Sembawang GRC
To ask the Prime Minister whether MAS has seen a rise in the number and proportion of motorcycle loans with zero downpayment required.
Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1.There is no minimum downpayment for a motorcycle loan required in legislation. However, individual financial institutions (FIs) may require a minimum downpayment as part of their credit risk management. Currently, none of the local banks offer motorcycle loans with zero downpayment.
2. The Government does not collect data on loans which may be used to purchase motorcycles, whether they are granted by FIs, licensed or exempt moneylenders, or unregulated motorcycle dealers.All FIs and non-FIs (e.g. motorcycle dealers) that extend motorcycle financing on a hire-purchase basis are required to comply with disclosure requirements under the Hire Purchase Act.