• Car Loan BYTES FROM OUR KITCHEN

    Hong Leong Finance Car loan

    Looking for a car loan to purchase that vehicle you’ve been wishing to get your hands on for like, ever? Car loans are amongst the most popular types of loans in Singapore after personal loans and the car market in Singapore is one of the leading markets in Southeast Asia. There are several banks and financial institutions offering car loans to Singaporean citizens, Permanent Residents and Foreigners as well. Among the various financial institutions offering car loans, Hong Leong Finance is one of them.

    Hong Leong Finance is a leading financial institutions that offers a spate of banking and financial products to Singaporean citizens, Permanent Residents and Foreigners. HLF offers personal loans, home loans, refinancing options, car loans, and more. So, if you are looking for the ideal financial institution to help finance your vehicle’s purchase, Hong Leong Finance might very well be your go-to source.

    Let us look at various aspects of the car loan product offered by Hong Leong Finance in Singapore. Note that Hong Leong Finance offers loans for both used cars as well as new cars. As much as the new car market has grown in Singapore, the used car market has posted a near equivalent growth trajectory.


    HLF Car Loan DetailsUpdated on 16 Feb 2019

    Hong Leong Car Loan Interest Rate

    HLF New Car Loan Interest Rates:

    If you are purchasing a new car and you would like to borrow S$15,000, the monthly instalments will be as shown in the table given below based on the loan tenure ranging from 1 to 7 years:

    Tenure of car loan (Years) Applied Interest Rate (% p.a.) Effective Interest Rate (% p.a.) Monthly Instalment
    1 2.48 5.38 S$1,281
    2 2.48 5.11 S$656
    3 2.48 5 S$448 (last instalment S$436)
    4 2.48 4.92 S$344 (last instalment S$320)
    5 2.48 4.86 S$281
    6 2.48 4.82 S$240 (last instalment S$192)
    7 2.48 4.77 S$210 (last instalment S$174)

    HLF Used Car Loan Interest Rate:

    If you are purchasing a used car and you would like to borrow S$15,000, the monthly instalments will be as shown in the table given below based on the loan tenure ranging from 1 to 7 years:

    Tenure of car loan (Years) Interest Rate (% p.a.) Effective Interest Rate (% p.a.) Monthly Instalment
    1 2.78 6.03 S$1,285 (last instalment S$1,282)
    2 2.78 5.72 S$660 (last instalment S$664)
    3 2.78 5.59 S$452 (last instalment S$431)
    4 2.78 5.5 S$348 (last instalment S$312)
    5 2.78 5.43 S$285 (last instalment S$270)
    6 2.78 5.37 S$244 (last instalment S$178)
    7 2.78 5.32 S$214 (last instalment S$157)


    Types of Car loans offered by Hong Leong Finance

    There are basically two types of loans offered by Hong Leong Finance in Singapore. They’re:

    • The Hong Leong New Car Loan
    • The Hong Leong Used Car Loan

    Let us look at some salient features of each of these loan product offerings:

    Hong Leong New Car Loan

    • The Hong Leong New Car Loan comes with an interest rate of 2.78% p.a. The loan can only be used to purchase a new car in Singapore.
    • The loan is available to Singaporean citizens, Permanent Residents and Foreigners.
    • The tenure of the loan offered by HLF can stretch from 1 year to 7 years. 7 years is the maximum tenure that is available.
    • Hong Leong provides up to 70% financing against the cost of the vehicle. In most cases, this depends on the cost of the vehicle.

    Hong Leong Used Car Loan

    • The Used Car Loan from Hong Leong is similar to the new car loan – the tenure is a maximum of 7 years.
    • Financing of up to 70% loan is available on used cars.
    • To determine the loan amount, the vehicle’s open market value and the vehicle’s age are considered.

    Hong Leong Car Loan for Foreigners

    Even foreigners can apply for the Hong Leong Car Loan. If you are a foreigner who wishes to apply for the Hong Leong Car Loan, you will need to submit your work permit, your employment pass, latest payslips, and a copy of your Passport. You will also be required to have a minimum work experience of 2 years in Singapore.


    Hong Leong Car Loan Eligibility Parameters

    The following eligibility parameters need to be met in order to eligible for a Hong Leong Car Loan:

    • The applicant needs to be a Singaporean citizen, a Permanent Resident or a Foreigner.
    • The applicant needs to be a minimum of 21 years of age.
    • All documents as required by the bank need to be submitted.

    Documentation needed to apply for an HLF Car Loan

    If you wish to apply for a car loan, you are required to submit the following documents along with your duly-filled application form.

      • Front and back copy of your NRIC.
      • Income documents:
        • latest computerized payslips.
        • CPF statement for the last 1 year.
        • Income Tax Notice of Assessment.
      • Foreigners must submit a copy of their employment letter and their employment pass.

    How to apply for a Hong Leong Car Loan?

    • You can apply for the Hong Leong Car loan by visiting the official Hong Leong website and filling out the online loan application form.
    • You will also need to upload your relevant documents – your identity and income documents.
    • An executive from Hong Leong will then get in touch with you and help you complete your loan application.

    HLF Car Loan Calculator

    The HLF Car Loan Calculator comes in handy if you wish to apply for a car loan and calculate your monthly payments. The car loan calculator requires you to enter the loan amount, the down payment you intend to make towards your loan, your loan interest and your chosen tenure. Accordingly, the calculator will compute your monthly payments that remain fixed through the course of your tenure.


    Features and Benefits of Hong Leong Car Loan

    The Hong Leong car loan comes with an array of features and benefits. Let us take a look at the most prominent features:

    • Hong Leong Finance offers loans for both used cars as well as new cars in Singapore.
    • Loan tenures stretch form 1 year to 7 years.
    • Car insurance can be purchased along with the purchase of the vehicle.
    • Higher the tenure of the loan, lower will be the interest rate. However in this case, the interest payment will be more. In the case of short loan tenures, it is the opposite.
    • Interest rates for used car loans are slightly higher than rates for new car loans.
    • In the case of used cars, while determining the loan amount, the vehicle’s Open Market Value, along with the age of the vehicle, are considered.
    • Up to 70% of the vehicle’s cost will be funded by Hong Leong Finance.

    Hong Leong Car Loan Hotline

    If you have any queries in relation to your car loan, you can call the customer service centre on 6579 6777 from Mondays to Fridays, 8:45 a.m. to 6:00 p.m. except public holidays. If you have any questions in relation to loan payments and settlements for a hire purchase agreement, you can call 6579 6738.

    You can also request for a call back from HLF by filling in their online Callback Form available on the new/used car loan webpages.

    FAQ's

    Q. Will I get a car loan if I have a low credit score?

    Car loans are secured loans, as the vehicle itself behaves like collateral for the bank. If your income is at a decent level (meets the bank’s norms) and your employment stability is satisfactory, your loan application will be approved even if you are lacking slightly in the credit score front. However, your credit score needs to meet the minimum value (usually varies from bank to bank).

    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. Can I purchase a car insurance from Hong Leong along with my loan application?

    You can purchase the car insurance from your dealer directly. All new cars come with an insurance policy that is provided to the buyer by the car dealership. If you are purchasing a used car and the insurance is almost expiring, you can purchase a Hong Leong car insurance.

    Q. Can I opt to refinance my loan through HLF?

    Yes, if you wish to refinance your car loan, you will need to contact the Hong Leong Finance. Refinancing of car loans are done on a case to case basis.

    Q. Can I close my car loan before its tenure ends?

    Yes, you can close your car loan before the end of your tenure. However, you will be required to pay a pre-closing charge that depends on your total tenure and the number of years completed.

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