Taxi Driver Loan in Singapore: Bridging the Gaps Between Fares

Key Takeaways

• Personal loans for taxi drivers can cover the costs of life on the road, from licence fees and rental deposits to repairs.
• You need an LTA vocational licence to drive for fares. The TDVL covers both taxis and private hire cars, while the PDVL covers private hire cars only.
• Demand is steady, with about 400,000 taxi and private hire rides a day in Singapore.
• Borrow only what you need, and always check that your lender is licensed by the Ministry of Law.

Thinking of driving a taxi or signing up with Grab, but worried about the upfront costs? We totally get it. Between licence fees, rental deposits and the odd repair bill, getting on the road burns more cash than most people expect.

That’s where a taxi driver loan comes in, or a loan for Grab drivers if you drive a private hire car. Whether you’re a new driver or a seasoned cabby, it gives you breathing room to focus on earning when cash-strapped.

Let’s break down what it takes to get started and how a taxi driver personal loan can help.

Why Become a Taxi or Grab Driver?

According to the Ministry of Transport, Singapore’s combined taxi and private hire population has grown from 28,000 a decade ago to roughly 70,000 today, serving about 400,000 rides a day. Right now, the government has no plans to cap driver numbers.

✔ Flexibility and Freedom

Taxi and private hire drivers are self-employed, so you decide when to work, whether full-time or as a part-time side hustle. Many drivers also take jobs from more than one platform, such as Grab and Gojek. And if you would rather skip the usual 9-to-6 grind, you’ll prefer being on the move and meeting new people every day.

✔ Better Protection Than Before

Since 1 January 2025, the Platform Workers Act has given ride-hail drivers CPF contributions and work injury compensation insurance. Higher CPF contributions are mandatory for drivers born on or after 1 January 1995, while older drivers can choose to opt in.

TDVL or PDVL: Which Vocational Licence Do You Need?

Before you can pick up paying passengers, you need a vocational licence from the Land Transport Authority (LTA). As of September 2026, applicants for both the Taxi Driver’s Vocational Licence (TDVL) and the Private Hire Car Driver’s Vocational Licence (PDVL) must:

• Be at least 30 years old at the point of application
• Be a Singapore Citizen
• Have held a valid Class 3 or 3A driving licence for more than a year
• Be able to speak and read basic English
• Be up to date with MediSave contributions, if self-employed
• Have a clean criminal record

The application fee is S$40, and you’ll need a medical check-up and chest X-ray before starting your course. Here’s how the two licences compare, based on ComfortDelGro’s course fees:

Already hold a PDVL? A five-hour conversion course (S$144.43 with GST) lets you upgrade to a TDVL without retaking the full course.

In case you’re wondering, all three courses are eligible for SkillsFuture Credit. Pass your tests, and you’ll get a temporary licence the same day!

What Can You Use a Taxi Driver Loan for?

Vehicle rental is a common reason to take out a taxi driver loan or a private vehicle hire driver loan. But like any personal loan, it can cover much more than just driving-related expenses.

Drivers commonly use theirs for:

• Licence and course fees: Application, medical, course and test fees add up before you even earn your first fare.
• Rental deposits and ongoing rental: Many rental schemes require an upfront deposit, and a loan can tide you over during slower months.
• Vehicle upgrades: A newer, more comfortable car may earn you better reviews on the Grab app.
• Maintenance and repairs: A breakdown can cost you days or weeks of income on top of the repair bill.
• Accident-related costs: A loan can cover repairs while you wait for an insurance payout.
• Everyday running costs: These include fuel, parking and insurance premiums.

How Do You Qualify for a Taxi Driver Loan?

At Galaxy Credit, our Grab Taxi and Gojek loan is a personal loan that taxi drivers can apply for with simple criteria. You’ll need to:

• Be at least 21 years old
• Hold a vocational licence and/or taxi pass
• Provide proof of income
• Provide relevant documents, such as your car rental agreement or down payment details
• Be a Singaporean

How Much Can You Borrow, and What Will It Cost?

How much you can borrow with a taxi driver personal loan depends mainly on your income. Singapore Citizens earning less than S$20,000 a year can borrow up to S$3,000 in unsecured loans across all licensed money lenders. Those earning S$20,000 or more can borrow up to six times their monthly income.

Related read: How Much Can You Borrow From a Licensed Money Lender?

The law also caps borrowing costs: interest is limited to 4% a month, administrative fees to 10% of the principal at most, late fees to S$60 a month, and total charges cannot exceed the amount you borrowed! Our guide to the latest money lender rules explains more.

As always, before signing anything when taking out credit facilities, check that your lender appears on the Ministry of Law’s list of licensed moneylenders and has genuine, glowing reviews from other borrowers.

Bottom Line: Get Your Taxi Driver Loan With Galaxy Credit

Whether you are applying for your first vocational licence or keeping your Grab car on the road, a taxi driver loan/ private vehicle hire driver loan can help you drive with peace of mind by taking care of short-term expenses and costs. Just remember that any Grab loan driver-partners or cabbies take out should be one they can comfortably repay!

Not sure where to start? Speak with our friendly team about your needs, or apply for your loan today. We’re happy to provide all the guidance necessary to make your journey seamless and fuss-free.