• Car Loan BYTES FROM OUR KITCHEN

    DBS Car Loan

    There is this saying that keeps doing the rounds – your car defines your personality. Well, going by these standards, you might definitely want to consider purchasing the perfect vehicle and let it define your personality. With a car loan from DBS, you will be on track almost immediately!

    DBS is one of the largest banks in Singapore and offers a wide array of banking products and services. Consumer banking, retail banking, corporate banking and wealth management are amongst its most prominent service offerings. Under the consumer banking vertical, the bank offers loans, credit cards, investment options, savings options and more.

    If you are looking for a car loan to finance the purchase of your new car, DBS might well be your ideal option, as the bank offers affordable interest rates and flexible tenures. That’s not all, even if you are looking to purchase a used car, DBS Bank’s used car loan will be immensely resourceful.

    Let us go ahead and look at what you can expect from DBS Bank as far as applying for your car loan and the interest rates on your loan are concerned.


    DBS Bank Car Loan DetailsUpdated on 19 Mar 2019

    DBS Car Loan Interest Rate in Singapore

    The tables below show the monthly instalment that you will have to pay based on the loan tenure and the interest rate applied and the maximum amount that you can borrow and the estimated purchase price of the car:

    We have taken the promotional interest rate (2.28% p.a.) in the table below and considered the loan amount to be S$10,000.

    Car Instalment Calculator

    Tenure (years) Applied Interest Rate (AIR % p.a.) Effective Interest Rate (EIR % p.a.) Monthly Instalment
    1 2.28 4.3284% S$853
    2 2.28 4.3929% S$436
    3 2.28 4.395% S$297
    4 2.28 4.4923% S$228
    5 2.28 4.4053% S$186
    6 2.28 4.3387% S$158
    7 2.28 4.4997% S$139

    We have taken the promotional interest rate in the table above.


    DBS Car Loan Promotion 2019

    You will enjoy an interest of 2.28% p.a. (Effective Interest Rate 4.29% p.a. over a period of seven years) on your loan, if you apply online. This offer is applicable only until 28 February 2019.

    Here is an example as to how much you will be able to save based on a loan amount of S$80,000 over a seven-year tenure.

      Interest Rate Total Interest Payable You Save
    Apply Car Loan Online 2.28% S$12,768  S$2,800
    Non-online Car Loan 2.78% S$15,568

    To redeem this promotion, you must visit the DBS car loan page and click on the ‘Sign Me Up’ button. You will have to fill in the details online and send it with all the necessary documents that include insurance cover note, LTA vehicle registration details, and the Hire Purchase Agreement. This promotion is applicable only for the purchase of a used car.


    Types of DBS Car Loans

    There are basically two types of Car Loans that DBS offers:

    DBS New Car Loan

    Here are some things you should know about DBS Bank’s New Car Loan:

    • The DBS New Car Loan can only be taken for the purchase of a new car.
    • The loan amount for the vehicle is dependent on the vehicle’s Open Market Value (OMV). Basically, the amount is pegged to the car’s OMV.
    • While applying for a new car loan from DBS, it is highly advisable not to transfer ownership of the vehicle to your name until the loan amount is approved.
    • The loan amount is dependent on the price of the car. DBS does not finance the entire cost of the vehicle.
    • If the price of the vehicle is greater than S$20,000, then 60% of the vehicle’s Open market Value will be financed by DBS. If the price is lesser than S$20,000, 70% of the vehicle’s Open Market Value will be financed.

    DBS Used Car Loan

    Are you thinking of applying for a used car loan from DBS? Here is exactly what you need to know.

    • The price of the vehicle and the loan amount is dependent on the vehicle’s Open Market Value, as is the case with loans offered by most banks.
    • The Open Market Value in the case of used cars is calculated by taking the age of the vehicle into consideration. This is done specifically to determine the LTV (Loan-to-Value) ratio. If the LTV value meets the bank’s financial regulatory framework, the loan will be approved by DBS.
    • In the case of used cars, just as is the case with new cars, the tenures can stretch from 1 years to 7 years.

    DBS Car Loan for Foreigners

    DBS provides car loans for foreigners as well. If you are a foreigner and wish to apply for a DBS Car Loan, you will be required to submit your income and identity documents along with your passport and work permit.


    DBS Car Loan Eligibility Parameters

    In order to apply for a car loan from DBS, the following eligibility parameters need to be met:

    • The car loan applicant has to be over 21 years of age.
    • The applicant must meet the minimum income criteria set by the bank in order to qualify for the car loan. This is applicable in the case of both new car loans as well as used car loans.
    • The applicant has to be a Singaporean citizen, a Permanent Resident or a Foreigner.
    • All documents submitted have to be consistent in the information they present. Inconsistencies will result in the rejection of the loan application.

    Documentation needed to apply for an DBS Car Loan

    • 1. Proof of Identity
      • Singaporean/Permanent Residents - Copy of NRIC
      • Foreigner - Copy of valid passport and a copy of employment pass
    • 2. Salaried
      • CPF contribution statement (Latest month dated not more than 2 months ago)
      • Computerized pay slip (Latest month dated not more than 2 months ago) OR any of the below
      • Full set of Employment / Appointment Letter - (Latest month dated not more than 2 months ago) Tax Assessment (Recent year)
      • Latest 2 months of Bank Statement showing Salary Credit
    • 3. Self Employed
      • Tax Assessment
      • Variable income - Bonus
      • Require both latest computerized pay slip and latest tax assessment

    Fees & Charges

    With a DBS car loan, you will have to pay an early redemption fee if you settle the loan before the tenure expires. The amount applicable is described in the section below. In addition, you will have to pay a late payment fee that ranges between 3% p.a. - 5% p.a., plus the average prime rate of DBS, OCBC, and UOB on any amount overdue.

    How to apply for the DBS Car Loan?

    You can apply for the DBS car loan by visiting the official DBS website and filling out the online application form. Once you fill out the online application form, you will also have the provision of uploading your documents. Once you upload your documents, an executive from DBS will get in touch with you and help you take your loan application forward. He/she will also verify the authenticity of the information you’ve provided and subsequently process your loan application.

    Once your application is processed, it will be reviewed by the bank’s credit team and will be approved if your application meets the bank’s internal credit norms.

    DBS Car Loan Calculator

    The DBS Car Loan Calculator lets you calculate your monthly payments towards your car loan by entering details including your down payment, loan amount needed and loan tenure. You can enter all these details and the calculator will indicate the amount you’d be paying on a monthly basis through your loan tenure. Note that your monthly payments will remain fixed throughout your loan tenure.


    DBS Car Loan Early Settlement

    If you wish to sell your car or if you are planning to settle your loan early, you will have to pay off your entire loan amount before you can transfer the ownership to the buyer. In addition to the unsettled instalments, you will have to pay the various fees and charges applicable if you redeem your car loan early. Here is a step-by-step procedure involved:


    DBS Car Loan Features and Benefits

    Dbs Car Loan

    Choosing DBS to finance the purchase of your vehicle comes with a host of features and benefits indeed. Let us look at the most prominent features and benefits that you can enjoy:

    • DBS offers loans for both new cars and used cars. So, whether you decide to buy a used car or a new car, DBS has anything you need.
    • Used car loan interest rates are slightly higher than new car loans. As such, the used car market is growing quite strongly in Singapore.
    • DBS offers tenures that stretch from one year to 7 years. Depending on the vehicle you wish to purchase and the amount you wish to borrow, you can choose a tenure of your choice.
    • Usually, the interest paid is higher for longer tenures and lesser for shorter tenures. The rate of interest, however, will be higher for shorter tenures and lesser for longer tenures.
    • DBS’s promotional offer on car loans will give you a 6-month interest free period besides offering you a preferential interest rate of 2.78%. The offer is valid for tenures that exceed a 2-year period.
    • The loan amount is completely dependent on the vehicle’s Open Market Value. Also, as a car loan customer, you will not receive 100% financing for your vehicle.
    • If the price of the car is greater than S$20,000, then only 60% of the vehicle’s Open Market Value will be financed through the DBS loan. If the price of the car is lesser than S$20,000, 70% of the vehicle’s open market value will be financed by DBS.

    DBS Car Loan Hotline

    If you have any questions or queries about your DBS Car Loan application, you can contact the DBS hotline number for car loan on +6333 0033.

    FAQ's

    Q. In case of loan refinancing, will the loan tenure be adjusted to a 7-year period?

    If you have opted for a 7-year loan tenure, refinancing with any bank will not allow for a tenure of 7 years again. If you decide to refinance your loan after a 3-year period, you will have to make repayments through the remainder of your 7-year tenure.

    Q. Are repayments fixed throughout the tenure of the loan?

    Car loan interest rates are fixed interest rates. Repayments, thus, remain fixed throughout the tenure of the loan.

    Q. Is it possible to get a car loan with a low credit score?

    Yes, it is. The vehicle itself acts as collateral. Car loans are secured loans, so as long as your credit score meets the minimum criteria in accordance with the bank’s internal norms, your loan application will get approved.

    Q. Is the interest rate calculated on AIR or EIR?

    Car loan interest rates are calculated in accordance with the Effective Interest Rate. The Effective Interest Rate takes into consideration your payments over the course of your tenure and calculates your interest payments for the remainder of your tenure.

    Q. Can you pre-close your car loan with DBS?

    Yes, you can. Depending on how soon you wish to pre-close your loan, you will have to pay pre-closure charges as may hold applicable.

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