A Grab Loan May Be The Recession-proof Break You Need

With a slow recovery from the pandemic days, there is no time like the present to make a foray into the private car hire business. This industry has proven its resilience even during multiple lockdowns, hence it is here to stay even as we are slowly recovering and potentially heading into a recession.

So how do you get started in this business? A Grab loan will be a valuable resource to take advantage of. Let’s dive into why you should consider it and how it will be beneficial for you.

Why become a private car hire driver?

First, we need to address the reason why this is a viable money-making option. There has been a significant shift from choosing a taxi driver career in favour of private car hire work among Singaporeans. The simple reason behind it is that rideshare companies such as Grab apply fewer restrictions on their drivers.

Here are the reasons why being a private car hire driver is appealing to some:

1. Independence

Unlike taxi operators, private car hire companies do not set a minimum daily mileage requirement for their drivers. This gives you true independence to work as and when you please, and to change your schedule to suit your circumstances. It is the ideal arrangement for part-time work.

2. Vehicle use

Taxis are painted specifically to be distinguishable and there are strict guidelines against drivers using them for private purposes. When you drive a private hire vehicle, there are no restrictions on how you may use it outside of work.

3. Training time

To obtain a Taxi Driver’s Vocational Licence (TDVL), you need to complete 25 hours of training, which includes 16 hours of classes and 9 hours of self-study. A Private Hire Car Driver’s Vocational Licence (PDVL) course consists of 10 hours of training, of which eight hours are in the classroom and two hours are self-study. You finish the PDVL course and start earning in less time.

4. Course costs

The TDVL course costs $294.25, including training materials. That is almost double the cost of the PDVL course, where training costs just $160.75, including training materials. (The assessment costs for both courses are $25). Note that these prices are excluding GST.

5. Lifestyle preferences

Being cooped up (whether at home or in an office building) can be depressing when you have to do it every single day. A private car hire driver is always on the move, meeting new people, seeing new places, and experiencing new things.

6. Fun career

Many car hire drivers choose the path because it offers them a way to earn money without the stress and pressure of the rat race. All you have to do is drive safely, be respectful of your customers, and get paid at the end of the ride. If you enjoy driving without worrying about having to clock in and out of a 9-6 job, this will seem like a fun ride for you.

Please note that this article contains the latest information from the Land Transport Authority (LTA) as of June 2022. Private car hire drivers are required to be at least 30 years old at the point of application, be a Singapore citizen, and possess a valid Class 3 or 3A Singapore driving licence for a continuous period of at least 1 year.

How can I use my Grab loan?

When most people hear about car hire loans, they assume it is for vehicle purchase or rental. While this is indeed one of the most common reasons that new drivers apply for this loan, it is certainly not the only one.

Grab loans – a part of personal loans – are also popular with drivers who have been working in the industry for years. They often use the loan to cover:

• Ongoing vehicle rental – for periods of sub-par income
• Upgrade to a new vehicle – for potentially better reviews on the Grab app
• Maintenance and repairs – as with any machine, vehicles require regular care and upkeep
• Accidental damages – more time on the road increases the likelihood of damage from accidents
• Miscellaneous expenses – this may include fuel, parking, insurance premiums, and even fines

In light of a pending recession after a pandemic, the demand for food delivery and transportation will always be present. At Galaxy Credit, we’re a legalised money lender in Singapore with personalised financial guidance to help kickstart your journey as a private-hire driver. Get the funds you need to embark on your new career. Get in touch with us today to find out more about our Grab loan and how you can increase your income stream.