If your car’s COE is about to expire, you might want to consider extending it for another five or ten years. The COE renewal process is straightforward if you have cash on hand. Pay the Prevailing Quota Premium (PQP) for the categorisation of your vehicle. PQP is a three-month moving average of COE pricing.

You may also opt for a COE renewal loan through a bank or an in-house loan to give your automobile a fresh start. However, keep reading to learn more if you’re unsure about COE renewal loans and the strain of growing COE rates.

Bank COE Renewal Loans

Banks will check your credit to see if you are capable of taking out a loan. The procedure typically takes a few days to complete. In general, obtaining a bank loan is more complicated than getting an in-house loan because banks thoroughly check and consider your eligibility for a loan.

Compared to in-house COE renewal loans, banks are transparent, provide additional security, and rarely impose expensive administrative costs.

Please keep in mind that banks do not accept applications for direct COE renewal loans. You’ll need to work with an agent like Swee Seng, who offers the same interest rates as your chosen or prospective bank.

In-House COE Renewal Loans

The approach for in-house COE renewal loans is often considerably more straightforward. However, the yield curve is typically higher than that of banks.

In-house loans are typically granted faster than bank loans because they do not require credit checks. Even if they conduct credit checks and you have a poor credit rating, it has little impact on your ability to obtain a COE renewal loan granted.

So, Which Is Better?

To speak of it, if you have a decent credit score, taking out a bank loan for your COE renewal is the best option. However, you’ll have to deal with all of the formalities associated with taking out a loan and the approval process for renewing your COE.

However, it is always a good idea to compare the two to ensure you make the best decision for your COE renewal loan needs. Taking out a bank or in-house loan for your COE renewal has its respective advantages.


Finally, you should think about how car ownership fits into your total budget – whether to take a used car loan or buy a new one with cash.

You can utilise budget calculators or renew COE loan calculators that are available on online platforms. After you’ve crunched the statistics, you’ll be able to make an informed decision about your travel.

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