Vehicle Financing
Whether you're purchasing a new car, a pre-owned vehicle, or refinancing an existing car loan, our vehicle financing solutions are designed to get you on the road with competitive rates and flexible repayment options. This guide covers our car loan products, eligibility requirements, the application process, and important details about ownership and insurance during the loan period.
Vehicle Loan Features
| Feature | New Vehicle | Pre-Owned Vehicle |
|---|---|---|
| Maximum financing | Up to 70% of purchase price | Up to 60% of market value |
| Loan tenure | Up to 7 years | Up to 5 years (vehicle age + loan tenure must not exceed 10 years) |
| Interest rate | From 2.48% p.a. (flat rate) | From 2.78% p.a. (flat rate) |
| Minimum loan amount | $20,000 | $15,000 |
| Processing fee | $500 | $500 |
| Early settlement fee | 25% of remaining interest or $500, whichever is higher | 25% of remaining interest or $500, whichever is higher |
Eligibility Requirements
To apply for a vehicle loan, you must meet the following criteria:
- Age: 21 to 65 years old (loan must be fully repaid before age 70)
- Residency: Citizens and permanent residents. Foreign nationals may apply with a valid employment pass and a minimum annual income of $60,000
- Income: Minimum annual income of $30,000 for citizens and permanent residents
- Driving licence: Valid driving licence for the class of vehicle being financed
- Vehicle registration: The vehicle must be registered in your name. Company-registered vehicles are not eligible under personal vehicle loans
Downpayment Requirements
A minimum downpayment is required based on the vehicle type and your existing vehicle loan obligations:
| Scenario | Minimum Downpayment | Maximum Loan |
|---|---|---|
| First vehicle loan — new car | 30% of purchase price | 70% |
| First vehicle loan — pre-owned car | 40% of market value | 60% |
| Second or subsequent vehicle loan | 40% to 50% | 50% to 60% |
The downpayment must be made in cash — CPF or provident fund savings cannot be used for vehicle financing.
How to Apply
Step-by-Step Application Process
- Choose your vehicle: Decide on the vehicle you wish to purchase from an authorised dealer or a pre-owned car dealer. Obtain a quotation or invoice showing the purchase price.
- Calculate your loan: Use our online Car Loan Calculator to estimate your monthly repayment based on the loan amount, interest rate, and tenure. This will help you determine a comfortable repayment level.
- Submit your application: Apply through internet banking, the mobile app, our website, or at any branch. Upload or bring your identification document, income documents, and the vehicle quotation or invoice.
- Loan assessment: We will review your application, verify your income and credit profile, and confirm the loan amount and terms. This typically takes 1 to 3 business days.
- Approval and acceptance: If approved, you will receive a Letter of Offer with the confirmed loan details. Review the terms and sign the acceptance.
- Disbursement: The loan amount is disbursed directly to the vehicle dealer. Disbursement is processed within 1 business day of receiving all required documentation, including the signed loan agreement and proof of insurance.
Documents Required
- Government-issued identification document
- Latest 3 months' payslips (salaried) or latest 2 years' tax assessments (self-employed)
- Vehicle purchase quotation or invoice from the dealer
- Vehicle registration card (for pre-owned vehicles)
- Copy of valid driving licence
- Proof of comprehensive vehicle insurance with the bank noted as the interested party
Insurance Requirements
Throughout the duration of your vehicle loan, you are required to maintain comprehensive motor insurance on the financed vehicle. The insurance policy must name our bank as an interested party, which means we will be notified in the event the policy is cancelled, lapses, or a total loss claim is made. You are free to choose any licensed insurance provider, and the policy must cover the full market value of the vehicle.
You must provide proof of insurance renewal to us each year before the existing policy expires. If proof of renewal is not received, we may arrange insurance on your behalf at the prevailing market rate and add the premium to your loan account.
Repayment Information
Your vehicle loan repayment is deducted automatically from your designated bank account on the same date each month. The monthly instalment is fixed for the entire loan tenure and includes both principal and interest components. Here is a sample repayment illustration:
| Loan Amount | Tenure | Flat Rate | Monthly Instalment | Total Interest | Total Payable |
|---|---|---|---|---|---|
| $70,000 | 7 years | 2.48% p.a. | $977.67 | $12,152.00 | $82,152.00 |
| $50,000 | 5 years | 2.78% p.a. | $949.17 | $6,950.00 | $56,950.00 |
Early Settlement and Transfer of Ownership
If you wish to sell your vehicle or pay off the loan before the end of the tenure, you must first obtain a settlement letter from us. The settlement letter confirms the total amount required to discharge the loan in full, including any early settlement fees. Once the settlement amount is paid, we will release the vehicle's registration document and remove our interest from the registration records. The process typically takes 3 to 5 business days after full payment is received.
You cannot transfer ownership of the vehicle to another person while the loan is active without our written consent. If you wish to transfer ownership, please contact our loans team to discuss your options.
Late Payment and Default
A late payment fee of $75 applies for each month a repayment is overdue. If payments are consistently missed, the loan may be classified as in default, which can result in legal recovery action and potential repossession of the vehicle. If you are experiencing financial difficulty, please reach out to us early — we offer hardship arrangements including temporary repayment reductions and tenure extensions to help you stay on track.
For vehicle loan enquiries, early settlement calculations, or hardship support, contact our loans team at 1800-XXX-XXXX or visit any branch.