CPF contributions are not payable on personal car loan given to your employee if it is not tied to his employment.

CPF contributions are payable if you agree that your employee need not pay back the loan or for the loan to be written off, e.g. given as a cash gift to your employee or you imposed conditions that are tied to employment (such as your employee must clinch a deal with a client or he has to work overtime for the next few months). In such cases, the cash payment is given in respect of employment.