People in Singapore often opt for a car loan to purchase a car, whether a new one or a used car. There are numerous banks that offer loans at competitive interest rates. For example, Standard Chartered offers a flat interest rate of 3.5% on its auto financing solution and you can get funds of up to 70% of the price of the car.
When it comes to selecting a car loan there are many factors that you need to consider in addition to interest rates. For example, many banks have loan calculators on their website that tell you the exact amount that you will have to pay each month based on the loan amount, interest rate applied, and the loan tenure.
DBS has a loan calculator that provides monthly instalment amount and the effective interest rate based on the loan amount entered and the applied interest rate. The table below shows the instalment payable each month based on the interest rate and loan tenure applied:
We have taken into consideration, the promotional interest rate of 2.28% p.a. to make calculations and assumed the loan to be S$30,000.
Car Instalment Calculator
|Tenure (years)||Applied Interest Rate (AIR % p.a.)||Effective Interest Rate (EIR % p.a.)||Monthly Instalment||Total Payable Interest||Total loan amount|
Note: The numbers mentioned above are only for illustrative purposes and it may vary under different circumstances.
You will get the following advantages with a car loan calculator:
With the DBS loan calculator, you can enter the loan amount that you wish to take, the applied interest rate and the loan tenure. Once you enter these details, you will automatically get the monthly instalment amount and the effective interest rate. The following banks have their own car loan calculator on their website which you can use to find out monthly payments: