, Singapore
3 views

Hong Leong floats green vehicle financing for Singapore vehicle rental firms

The Vehicle-Green Loan offers a rate as low as 1.5% per annum.

Hong Leong Finance has launched a green vehicle financing initiative for vehicle rental companies, touted by the banks as the first in Singapore.

In a press release, HLF revealed that the initiative comes in two parts: a Vehicle-Green Loan for fully electric vehicles (EVs) and hybrid vehicles, and a Charger-Green Loan for companies to take up charging station financing.

The Vehicle-Green Loan offers a rate as low as 1.5% per annum for up to seven years, and is available for purchase of full EVs or hybrid vehicles, the latter a combination of a petrol engine with an electric motor.

Companies also have the opportunity to take up charging station financing as a compatible option under the Charger-Green Loan scheme up to three years.  

Financing for both the EV and charger will be offered together to the rental companies, whilst they can decide on the make and brand of the EVs as well as the charging stations.  

HLF expects that its initiative will help to accelerate the number of charging stations to 60,000 under the Singapore Green Plan 2030, enhance drivers’ convenience with more charging locations islandwide, and reduce the waiting time to charge the car.

The Charger-Green Loan scheme will be expanded progressively to finance charger stations at commercial buildings and private condominiums, the bank added.

“In addition to customers who buy cars for personal use, we note that the vehicle rental category which includes private hire cars is a significant growing sector,” said Ang Tong Chor, president of Hong Leong Finance.

“We want to be inclusive. With the government’s enhanced rebates on green cars in place, these companies will benefit as early adopters of eco-friendly vehicles,” he added.

Data from the Land Transport Authority revealed that Singapore’s private hire car sector grew 142% over the last five years to 71,147 cars in 2020. Over the same period, the number of EVs and hybrids on the island grew 571% to 43,632 vehicles.  

Similarly, the private car hire industry is seeing an increase in EVs. For example, Grab added 200 EVs to its fleet in 2019, indicating the growing ride-hailing market here and the cost efficiencies to these drivers, noted HLF.

Photo courtesy of Tesla

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Banking & Finance in your inbox

VCs flocking to "lucrative" APAC payments segment: report

Global VC deals rose to 620 in Q1 2021.

China injects $15.5b cash into the financial system to maintain liquidity: report

The nation’s top leaders recently described economic recovery as “unbalanced and unstable.”

Chart of the Week: Card payments in China to rebound 21.3% in 2021

Card payments are set to rise as economic activities gathers pace.

Citi APAC adds nearly 650 new wealth professionals in 2021 so far

The group has added over $5b in net new money in Q1 alone.

Goldman Sachs ramps up China ambitions with hiring spree: report

It is planning to add over 400 new people in its headcount in 2021 alone.

Citi appoints new head for private banking arm in South Asia

Lee will have direct responsibility over the private bank arm of Singapore, Malaysia.

Citi APAC rolls out gender diversity program for investment, securities arm

The program’s 50 top candidates will have the chance to be recruited by the bank.

Standard Chartered, EastWest on the blueprint for building the bank of the future

Data is the new oil, says Sarabjit Anand, Standard Chartered’s CIO for Singapore and ASEAN.

Low costs buoys Australian banks’ profits, but pressures to persist

Operating profit is 46% higher than last year, but pre-impairment earnings remain subdued.

HSG shares insights on modelling core banking IT for the digital economy

Sisi Yu gives us a glimpse of how banks can achieve higher performance through improved services.