Updated 22 September 2026
A COE renewal loan for commercial vehicles in Singapore covers the renewal cost itself, so how much you borrow is 50% of the Category C PQP for five years or 100% for ten (LTA, 2026): about S$46.5k or S$92.9k in September 2026. How long you repay runs to five or seven years, and where you borrow is a bank, a finance company or a dealer such as ABLINK on Tagore Industrial Avenue.
If your van's COE runs out next month, the interest rate isn't the first question. The 20-year statutory lifespan is. It decides which renewal you can buy, and that decides how much you borrow and for how long. We'll walk through the numbers, the three kinds of lender, and a checklist you can run this week.
Key takeaways
- A 5-year renewal costs 50% of the PQP; a 10-year renewal costs the full PQP (LTA, 2026).
- The September 2026 Category C PQP is S$92.9k, up 37.8% on the S$67.4k of September 2025 (AAS, 2026).
- Every COE renewal loan Singapore lenders offer is sized off the PQP, so the amount you borrow changes every month.
- Goods vehicles have a 20-year statutory lifespan. After a 5-year renewal, a van or lorry can only renew again in 5-year steps.
- Published repayment periods run to five years on a 5-year renewal and seven years on a 10-year renewal.
- Banks, finance companies and dealers all offer the loan. Compare the flat rate, the fees and the tenure in writing.
What is a COE renewal loan for commercial vehicle owners?
A renewal loan pays the Prevailing Quota Premium that LTA charges to extend a van's or lorry's Certificate of Entitlement, and you repay it in monthly instalments. It doesn't buy a vehicle. It buys time on the road for the one you already own.
Every COE starts with a fixed life. A new COE lets a vehicle stay on the road for ten years (OneMotoring, 2026). When that decade ends, you renew, or you deregister.
Renewal doesn't mean bidding again. You pay the PQP for your category instead. LTA calculates it as a rolling three-month average of the quota premiums, counting only months that had COE bidding (LTA, 2026). Vans, lorries and buses all sit in Category C, "goods vehicle and bus".
Because it's a three-month average, the PQP trails the bidding results. If you want to see how it has moved through 2026, we've tracked how the Category C PQP moves month to month.
How much can you borrow to renew a van or lorry COE?
You can borrow up to the full renewal cost. Finance companies advertise it openly: one commercial vehicle lender states, "We provide 100% financing base on the PQP amount" (published lender terms, 2026). So the loan size is really a question of which renewal period you pick.
LTA sets the two prices. Five years costs half the PQP, with LTA rounding up to the next whole dollar. Ten years costs the full PQP (LTA, 2026). At the September 2026 Category C PQP, published by LTA and listed by the Automobile Association of Singapore, that works out as follows.
| Renewal period | Share of PQP | Cat C amount, Sep 2026 PQP (S$) | Where the 20-year lifespan leaves you |
|---|---|---|---|
| 10 years | 100% | 92,907 | A van at year 10 can run to year 20, the end of its life |
| 5 years | 50% | 46,454 | Runs to year 15, then one more 5-year renewal to year 20 |
| 5 years (second time) | 50% of that month's PQP | Not known yet | Runs to year 20; no further renewal |
The last row is the one owners forget. A second 5-year renewal is priced at the PQP of the month you renew, not today's. And that figure has moved fast. The Category C PQP was S$67.4k in September 2025 and S$92.9k a year later, a 37.8% rise (AAS, 2026).
Why has the Category C PQP risen so fast?
The reason is on the record. In a written reply to Parliament on 4 August 2026, the Minister for Transport linked the recent jump in Category C prices to a surge of electric heavy goods vehicles and electric buses since the Heavy Vehicle Zero Emissions Scheme started in January 2026 (Ministry of Transport, 2026). Their share of heavy vehicle registrations climbed from under 1% in 2025 to over 30% in June 2026.
Which PQP applies when you renew?
The one for the month you renew. LTA says the PQP varies monthly, depending on the quota premiums in the bidding exercises of the last three months (LTA, 2026). So the same lorry can cost more, or less, to renew depending on when you pay.
Because it's an average, the renewal price reacts more slowly than the bidding price. In the first September 2026 exercise, the Category C quota premium closed at S$93.1k, while the September PQP stood at S$92.9k (COE results, 2026). Before you pick a COE renewal loan, Singapore lenders will size it off the PQP you actually pay, not off the latest bidding result.
Timing has a hard edge too. Renew before the COE expires, or pay a late fee to renew within a month of expiry. Miss both and LTA requires the vehicle to be deregistered. One finance company puts loan approval at one to three days, so leave more room than that: a missing document can eat a week.
How long can you take to repay it?
The repayment period follows the renewal period. The published tenures stay inside the COE period they pay for, so a 5-year renewal gets a shorter loan than a 10-year one. Here's what three lenders publish today.
| Lender (published terms) | 5-year renewal | 10-year renewal |
|---|---|---|
| Speed Credit, Cat A, B and C | 5-year repayment | 7-year repayment |
| UOB, commercial vehicle hire purchase | Tenor up to 7 years; covers vehicles with renewed COE | |
| ABLINK calculator | Up to 48 months | Up to 84 months |
Sources: Speed Credit, 2026; UOB, 2026; ABLINK's live renewal calculator.
These are lender policies, not an LTA rule, and each quote depends on credit approval, which is why owners so often ask what the cap is. For a 10-year renewal, seven years is the figure these lenders publish. On a five-year renewal, expect four to five.
Shorter or longer tenure: which suits your cash flow?
A shorter tenure means a higher monthly figure but less interest in total. A longer one frees cash for the business. Neither is wrong. Pick the tenure your delivery contracts can carry comfortably, not the one that looks cheapest per month.
The 20-year limit decides which renewal you can buy
This is where a van or lorry parts company with a car. LTA gives goods vehicles a statutory lifespan of 20 years (LTA, 2026). Once a vehicle reaches the end of it, the COE can't be renewed and the vehicle must be deregistered.
The renewal rules differ by category too. Cars and motorcycles in Categories A, B and D can renew for five years only once. Category C is more flexible: after a first 5-year renewal, a van can keep renewing, but only in further 5-year periods. So a van or lorry on its first 10-year COE has exactly two paths.
- 10 + 10. One renewal at the full PQP takes the vehicle to year 20. One loan, one approval, one set of fees.
- 10 + 5 + 5. Half the PQP now, then half of whatever the PQP is in five years. Two loans, two approvals.
Our view: choose on how sure you are that the vehicle will still be working at year 20, not on the monthly figure. If you're sure and your routes won't change, the 10-year renewal settles the whole run to year 20 in one loan. There's no second price to face in five years. The cost of that certainty is borrowing the full PQP now: S$92.9k, after a 37.8% rise in a year (AAS, 2026).
If you might replace the vehicle within five years, because you're switching to electric, a contract is ending or repairs are mounting, the 5-year renewal halves what you borrow and keeps the next decision open. Its second renewal will be priced at a future PQP, which could be higher or lower than today's. Past year 15, there's no choice to make.
Whether to renew at all is a separate question. We've set out whether to renew the COE or buy new with the running costs side by side.
Flat rate: what it means before you compare quotes
Most COE renewal loans in Singapore are quoted at a flat rate. UOB describes its commercial vehicle financing as "flat rates monthly repayments", and ABLINK's calculator describes its loan as a flat rate, "not reducing balance / EIR". Under a flat rate, interest is charged on the original loan amount for every year of the tenure, even as you repay the balance.
That has two consequences. First, a flat rate always looks lower than an effective rate on the same loan, because it ignores that you owe less each month. Second, a longer tenure multiplies the interest, since the rate applies to the full amount for more years.
How does a COE renewal loan work in practice? Compare like with like. Ask every lender for the same amount and tenure, then compare the flat rate, the admin fee and the early settlement terms. One finance company lists a one-time admin fee and an early redemption penalty under the Rule of 78 (published lender terms, 2026), and those lines move the true cost as much as the headline rate.
The cheapest COE renewal loan is the one with the lowest total cost at the tenure you actually need. It isn't the lowest advertised rate. Promotional rates change often, so treat any figure you see online, including ours, as a starting point for a written quote.
Where to get a COE renewal loan for a van or lorry in Singapore
Three kinds of lender offer a commercial vehicle COE renewal loan in Singapore. The practical differences are who they'll lend to and how much of the paperwork they handle.
Borrowing from a bank
UOB's hire purchase covers commercial vehicles, including ones whose COE has been renewed, over tenors of up to seven years (UOB, 2026). UOB sets two conditions for it: the company must have traded here for at least three years, and at least 30% of its shares must be locally held. A younger company may not qualify, and the page doesn't say in so many words that it finances the renewal itself, so ask before you count it as a quote.
Borrowing from a finance company or broker
Specialist finance companies lend in-house or route the loan to a partner bank. One states 100% financing on the PQP amount, a maximum seven-year repayment period and loan approval "from 1 to 3 days" (published lender terms, 2026). If your company is younger than three years, ask a finance company or dealer what it needs instead; rates vary with the credit profile.
Borrowing through a dealer such as ABLINK
ABLINK arranges COE renewal financing for Category A, B and C vehicles, which covers vans, lorries and buses. It doesn't finance Category D motorcycles or Category E. The loan amount equals the renewal cost: 50% of the PQP for five years or 100% for ten, rounded up to the next dollar (ABLINK, 2026).
It's a Singapore flat-rate loan. Tenures run up to 48 months on a five-year renewal and up to 84 months on a ten-year one, and the calculator applies the current month's Category C PQP, which for September 2026 is the figure in the table above. ABLINK also buys, sells and leases commercial vehicles, so if renewing turns out to be the wrong call, the same team can price the alternatives.
What documents does a company usually need?
Lenders set their own lists. As one example, a finance company asks a company applicant for these documents (published lender terms, 2026):
- Loan application form, chopped and signed by the company
- A clear copy of the ACRA business profile, printed within 3 months
- The latest 3 months of company bank statements
- The vehicle log card or its acknowledgement
- For the director standing as guarantor: NRIC copy and income documents (CPF statements, Notices of Assessment or payslips)
Have these ready before you ask for quotes, so a missing bank statement doesn't hold the file up.
Renew, or sell and replace?
A renewal loan makes sense when the vehicle still earns its keep. It makes less sense when the van is tired, the business needs a bigger body, or an electric model would qualify for a grant. Those cases call for a price on the old vehicle before you commit to renewing it.
If renewing doesn't stack up, price the alternatives first. A used commercial vehicle for sale with more COE left may cost less than a renewal; our used van pre-purchase checklist shows what to inspect. To see what your current van would fetch, compare selling or scrapping a commercial vehicle with what a trade-in is really worth.
If you're weighing it up, read your options if you sell before the COE expires. If replacing looks better, our guide to financing a new van or lorry covers the purchase side of commercial vehicle loan Singapore options, and the live range of new vans and lorries shows the latest prices.
A five-step COE renewal loan checklist
- Check the expiry date and the vehicle's age. You must renew before the COE expires, or within 1 month after it with a late renewal fee (LTA, 2026). Past year 15, only a 5-year renewal is left.
- Choose 5 or 10 years against the 20-year lifespan and your plans for the vehicle.
- Look up this month's Category C PQP. It changes monthly; the next COE tender closes on 23 September 2026 (COE results, 2026).
- Get three written quotes for the same amount and tenure: a bank, a finance company and a dealer.
- Compare flat rate, admin fee and early settlement terms, then sign and let the lender process the renewal before expiry.
Getting a COE renewal quote from ABLINK
Start with the numbers. If your van or lorry COE expires in the next few months, open ABLINK's COE renewal loan calculator, pick 5 or 10 years and a tenure, and it shows the current month's figures. Then ask the team for the flat rate and every fee in writing, so you can set it beside a bank's quote. ABLINK is at 421 Tagore Industrial Avenue, Tagore 8 Building, #02-13, Singapore 787805, and on +65 8946 8228.
Frequently asked questions
Where can I get a COE renewal loan for my van or lorry in Singapore?
From three kinds of lender: banks such as UOB, which finances commercial vehicles with renewed COEs; finance companies and brokers, which advertise up to 100% of the PQP (published lender terms, 2026); and dealers such as ABLINK, which arranges flat-rate COE renewal financing for Category C vans and lorries. Compare written quotes for the same amount and tenure.
Can I take a full loan for COE renewal?
Yes, many lenders finance the whole renewal cost. That is 50% of the PQP for five years or 100% for ten (LTA, 2026). At the September 2026 Category C PQP, the full 10-year amount is about S$92.9k. Approval depends on the lender's credit assessment of your company and its directors.
Can COE be paid by instalment?
Not to LTA directly: the PQP is paid in full when you renew. A COE renewal loan pays LTA on your behalf and lets you repay in monthly instalments. Lenders publish tenures of up to five years for a 5-year renewal and up to seven years for a 10-year renewal.
How do I apply for a COE loan?
Pick your renewal period, gather the company documents (ACRA profile, recent bank statements, log card and the director's ID and income proof), and submit them to a bank, finance company or dealer. Once approved, the lender usually pays LTA and processes the renewal. Start early; late renewal costs a fee.
How long can a van or lorry keep renewing its COE?
Until the end of its 20-year statutory lifespan. A goods vehicle can renew once for 10 years, or in 5-year steps: after a first 5-year renewal, only further 5-year renewals are allowed. At year 20 the COE can't be renewed and the vehicle must be deregistered.
Is a 5-year or 10-year COE renewal better for a lorry?
It depends on how sure you are that the lorry will keep working to year 20. A 10-year renewal costs the full PQP and takes a lorry at year 10 to the end of its 20-year life on one loan. A 5-year renewal halves the loan now and suits a lorry you may replace within five years; if you keep it, the second 5-year renewal is priced at that month's PQP, which may be higher or lower than today's.
Is there a COE renewal loan calculator for commercial vehicles?
Yes. ABLINK's COE renewal loan calculator covers Category A, B and C. It applies the current month's PQP, lets you choose a 5- or 10-year renewal, and offers tenures of up to 48 or 84 months respectively. Treat the result as an estimate and confirm the rate and fees in a written quote.
Disclaimer: this guide to the COE renewal loan for commercial vehicle owners in Singapore is general information as at 22 September 2026, not financial advice. PQP figures follow LTA's monthly publication; lender terms are those published by each lender on that date. All loans are subject to credit approval and each lender's terms, which can change. Confirm current figures with LTA and your lender before you renew.
