The short answer
What it is. A COE renewal loan lets you renew your Certificate of Entitlement now and repay it monthly, instead of paying the full Prevailing Quota Premium (PQP) in one lump sum.
What you can borrow. Up to 100% of the PQP, usually over five to seven years.
This page covers how much you can borrow, what it costs once you account for the rate type, how long you can stretch it, and who qualifies. Use the calculator above to see your own monthly figure.
How much can you borrow to renew your COE?
Up to 100% of your PQP. The renewal is priced on the PQP, so the loan tracks it directly. A 10-year renewal costs the full PQP and can be financed in full; a 5-year renewal is priced at half the PQP, so you borrow against the smaller figure. Most lenders set a floor of around $10,000, below which a renewal is paid outright rather than financed.
Your PQP moves every month, so the amount you can borrow moves with it. Check this month’s PQP for your category before you run the numbers, then drop it into the calculator above.
What a COE renewal loan costs
The rate depends on the lender and your profile. Promotional flat rates from banks and licensed financiers start at around 2.5% to 2.8% a year. In-house plans through dealers or workshops usually sit higher, often above 4%.
The number that actually changes your total is the rate type. A flat rate charges interest on the whole amount for the full tenure. A reducing-balance rate charges only on what you still owe, so the same headline figure costs you less.
On a $60,000 loan over seven years, a 2.78% flat rate works out close to a 5.2% effective rate once the balance falls, so always check which one you are being quoted.
5-year vs 10-year renewal: which to finance
Your renewal length sets your cost, your maximum loan tenure, and whether you can ever renew again. Here is the difference at a glance:
| What changes | 5-year renewal | 10-year renewal |
|---|---|---|
| What you pay | 50% of PQP | 100% of PQP |
| Maximum loan tenure | 5 years | About 7 years |
| Renew again after? | No, final term | Yes |
| Best for | Older cars, a short horizon | Sound cars you plan to keep |
A 5-year renewal is cheaper upfront but final: the car has to go at the end of it. A 10-year renewal costs more and can be financed over a longer tenure, which lowers the monthly payment but raises the total interest.
How long the loan can run
Renew for 10 years and most lenders stretch the loan to about seven years. Renew for 5 years and the loan is capped at five. A longer tenure brings the monthly payment down and the total interest up, so slide the tenure in the calculator until the monthly figure sits where you want it.
Who qualifies
Lenders look at three things: your income, your credit record, and the car itself. A well-kept car with a clean record is far easier to finance than one limping toward the end of its life. There is no single income bar across the market, and most lenders fund Singaporeans, PRs, and foreigners with local income. Get a quote on your actual car rather than rely on a rule of thumb.
Renew, or let the car go?
A loan only makes sense if renewing beats scrapping. If the repair bills are climbing or the PQP is high for what the car is worth, deregistering it can put more money back in your pocket. Work it out here: renew vs scrap, side by side, or read the full COE renewal guide.
Rate and tenure figures reflect Singapore lender listings (MoneySmart, SpeedCredit, RenewCOE) checked in June 2026; PQP figures are the September 2026 LTA rates. Your actual rate depends on the lender and your profile.
