• Car Loan BYTES FROM OUR KITCHEN

    OCBC Bank Car Loan

    Looking to buy a car? If you choose an OCBC car loan, you will enjoy financing that is seamless. The bank offers loans for new and used car financial as well as car refinancing. If you visit OCBC’s website, you can use the online calculator to find out how much you need to pay based on the loan amount you wish to take. You can even add different tenures on the tool to find out which is the best option for you.


    OCBC Bank Car Loan DetailsUpdated on 21 Feb 2019

    OCBC Car Loan Interest Rate 2019

    Interest Rate Margin of Finance Loan Tenure Guarantor Requirement
    2.08% p.a. - 2.98% p.a. 70% of the outstanding balance 1 year to 7 years No Info

    OCBC New Car Loan Interest Rates

    Have you decided to purchase a new car? OCBC can help make your new car purchase easier with tenures up to 7 years. Enjoy up to 70% financing for your new car and for an interest rate of 2.78% per year (effective interest rate will be higher).

    If you are a Singaporean, a Permanent Resident, or a foreigner, you can take a car loan provided you are at least 21 years old.

    Take a look at OCBC’s car loan rates for new cars. For the sake of the example below, the loan amount will be S$100,000.

    Tenure Applied Interest Rate (% p.a.) Effective Interest Rate Monthly instalment Total interest payable
    1 year 2.78% 5.09% S$8,565 S$2,780
    2 years 2.78% 5.25% S$4,398.33 S$5,560
    3 years 2.78% 5.27% S$3009.44 S$8,340
    4 years 2.78% 5.27% S$2,315 S$11,120
    5 years 2.78% 5.24% S$1,898.33 S$13,900
    6 years 2.78% 5.22% S$1,620.56 S$16,680
    7 years 2.78% 5.19% S$1,422.14 S$19,460

    Applying for a New Car Loan

    When obtaining a new car loan with OCBC, you will have to provide the bank with certain details so they can start the application process. These include:

    • Proof of your income such as an income tax notice of assessment or the last 6 months of your CPF contribution along with a copy of your electronic payslip and ID card.
    • Provide the bank with a completed application form and if you are a foreign worker, your work permit. You will also need to make the initial deposit payment.
    • You should find out whether your loan has been approved or rejected from your dealer. This should happen in 24 hours.
    • If your loan has been approved, you will have to meet your dealer to sign the hire purchase agreement. When you do meet them, carry your ID card with you and be ready to pay what may remain of the down payment. You may need to pay the first instalment for your car as well.
    • The dealer will then order your car (if it is not available), make a bid for the COE for your new car, and register your car.
    • You can then collect your car from the dealer. OCBC will send you the hire purchase agreement which will specify the due date for your payment and provide the instalment amount as well.
    • Once all of this is completed, you can start making payments to OCBC. You can choose to pay by GIRO, by cash at the bank, or by dropping a cheque at a cheque deposit box.

    OCBC Used Car Loan Interest Rate

    To be eligible for a used car loan from OCBC, you need to be at least 21 years old. The loans are open to Singapore residents, PR holders, and foreign nationals. With the loan, you may purchase a car from a dealer or directly from the owner who wants to sell their car. You will enjoy financing up to 70% of the cost of the vehicle and you can repay this over a maximum of 7 years.

    Tenure Applied Interest Rate (% p.a.) Effective Interest Rate Monthly instalment Total interest payable
    1 year 2.98% 5.46% S$4,290.83 S$1,490
    2 years 2.98% 5.62% S$2,207.50 S$2,980
    3 years 2.98% 5.64% S$1,513.06 S$4,470
    4 years 2.98% 5.63% S$1,165.83 S$5,960
    5 years 2.98% 5.61% S$957.50 S$7,450
    6 years 2.98% 5.57% S$818.61 S$8,940
    7 years 2.98% 5.54% S$719.40 S$10,430

    Important Notes:

    • The Effective Interest Rate or EIR is inclusive of the Applied Interest Rate (AIR) and all processing/administrative charges.
    • Interest rates may change at any point in time as per the discretion of the bank.

    Applying for a Used Car Loan

    There are two ways you can get a used car loan: Either through the dealer you are purchasing your car from or directly with OCBC. Take a look at the process for both:

    Finance from OCBC

    When you approach OCBC directly for a loan, the process is slightly different. Here’s what you will need to do to get your loan processed:

    • OCBC will first discuss interest rates and the duration of your car loan with you.
    • If you find the terms agreeable, you need to provide:
    • A copy of an identification document.
    • Income documents.
    • The loan application that you have completed.
    • A work permit (if you are a foreign national).
    • The vehicle’s electronic log card (or the IC of the seller and the plate number of the car).
    • The bank will contact you in 24 hours to let you know if your loan gets approved. They will also assign a credit agent to help you with the loan process.
    • You’ll have to get in touch with the credit agent and sign the hire purchase agreement once your loan is approved. You also must bring your ID card along with you. In addition, you will have to pay the first instalment to the car dealer and pay any administration fees. The bank will also ask to see your vehicle’s insurance document.
    • Once all this is done, your credit agent will get in touch with the car dealer so they can sign the sales and purchase agreement. Your vehicle will be transferred to you in 3 days.
    • After this step is completed, the credit agent will meet you to hand over your vehicle’s keys to you. OCBC will send you the hire purchase agreement, which will contain instalment amounts and payment due dates. This is sent by mail.
    • You can begin making payments to OCBC from the next due date. You can either set up a GIRO payment, make cheque payments at a drop box, or pay by cash at a branch of OCBC.
    Finance from the Car Dealer

    When applying for a loan through your car dealer, you need to provide them with the following details and documents:

    • Your payslip and a statement showing 6 months of the most recent contributions to your CPF or a notice of assessment from IRAS. You also need to provide a copy of an identification document like your passport or NRIC.
    • A complete application form needs to be sent in along with a payment for the initial deposit. Foreign workers need to submit their work permit.
    • You will find out if your car loan has been approved from your dealer in 24 hours.
    • Once this is done, you can meet with your dealer to collect your car. At this stage, you will need to sign the hire purchase agreement and bring your ID card for verification. Any remaining amount of the down payment needs to be paid at this point along with the instalment for the first month.
    • OCBC will send you a new hire purchase agreement by mail. This will contain details of your loan such as the due date for payments and the instalment amount you need to pay.
    • You can begin to make payments to OCBC via GIRO, through cheque, or using cash directly at the bank.

    OCBC Car Refinancing

    If you have an existing loan with another bank, you can choose to refinance your auto loan with OCBC. By doing this, your monthly payments can get lower. Your existing loan should have run for a minimum of 6 months for you to qualify. You can apply for this loan if you are a citizen of Singapore, a PR holder, or a foreigner if you are at least 21 years old.

    When you refinance your car loan, up to 100% of your outstanding balance will be covered. And as with the other two loan options with OCBC, you can repay your loan over a maximum tenure of 7 years. With a low interest rate of 2.08% per year, you can save some of your hard-earned money too.

    OCBC Car Loan for Foreigners

    Foreigners who meet the eligibility criteria can apply for all car loans offered by OCBC. However, additional documents may be required to process applications for foreigners applying for OCBC Car Loans. Additional documents required for foreigners can be found in the next section.

    Depending on what you want, be it a used or a new car loan, or refinance your existing loan, OCBC has a solution for you. With tenures that go up to 7 years, you can make payments easily without burning a hole in your pocket.


    OCBC Car Loan Eligibility Criteria

    General eligibility criteria for all OCBC Car Loans are as follows:

    • Minimum age – 21 years old.
    • Singaporean citizens, Singapore Permanent Residents and Foreigners are eligible to apply.

    Eligibility criteria for different types of OCBC Car Loans are as follows:

    • New car financing – New cars can be purchased from car distributors or parallel importers.
    • Used car financing – Used cars can be purchased from car dealers or directly from car owners.
    • Car Refinancing – Customers applying for car loan refinancing must have an existing car loan/auto loan from another financier for a minimum of 6 months with an interest rate of at least 2.40% p.a. or above.

    Documentation needed to apply for an OCBC Bank Car Loan

      1. A copy of your ID card such as your NRIC
      2. Income documents include the following:
        • Computerized payslips.
        • CPF statements for the last 6 months OR
        • Income Tax NOA (Notice of Assessment).
      3. Completed application form
      4. Work permit (for foreigners only)
      5. Applicants purchasing a used car must submit their seller’s plate number and IC or their vehicle electronic log card.

    Documents to be submitted by car loan refinancing applicants include:

      • Current Hire Purchase Agreement and
      • A complete settlement figure provided for their existing car loan/auto loan.

    OCBC Car Loan Features and Benefits

    OCBC New Car Financing:

    • Enjoy a maximum financing of 70% of your car’s total price.
    • You can choose a maximum repayment period of 7 years.
    • Enjoy a fixed rate of interest on your car loan at 2.78% p.a. Your Effective Interest Rate or EIR will differ depending on the repayment tenure you choose.

    OCBC Used Car Financing:

    • Enjoy a maximum financing of 70% of your car’s total price.
    • You can choose a maximum repayment period of 7 years.
    • Enjoy a fixed rate of interest on your car loan at 2.98% p.a. Your Effective Interest Rate or EIR will differ depending on the repayment tenure you choose.

    OCBC Car Refinancing:

    • Enjoy refinancing up to 100% of your outstanding balance.
    • You can choose a maximum repayment period of 7 years.
    • Enjoy a fixed rate of interest on your car loan at 2.08% p.a. Your Effective Interest Rate or EIR will differ depending on the repayment tenure you choose.

    How to apply for OCBC Car Loan

    Here are the steps you need to take when contacting OCBC to get your loan refinanced:

    • Provide your existing hire purchase agreement along with the settlement amount for the existing loan.
    • Call OCBC to find out how much you could potentially save in interest payments and learn more about the refinance amount and period.
    • If you agree to the terms, you will need to provide:
    • Documentation proving your income such as an electronic payslip and your income tax notice of assessment or the most recent CPF contribution (6 months).
    • A copy of an identification document.
    • If you are a foreigner, you need to provide your work permit.
    • Your refinance application form.
    • The existing hire purchase agreement.
    • The entire settlement figure for your current loan.
    • You should receive details of your application approval within 24 hours. An agent will also be assigned to you to assist you with the loan process.
    • You will need to meet with the credit agent to sign the new hire purchase agreement and the customer assignment. You also will have to pay any administration fees along with the first instalment.
    • The existing loan will get paid off in 3 days. The credit agent assigned to you will keep you updated of the process.
    • OCBC will then send you your new hire purchase agreement that will mention the monthly instalment amount and the due date.
    • You can start making payments to OCBC. Payments can be made either by GIRO, cheque, or a cash payment at the bank.

    OCBC Car Loan Calculator

    OCBC offers online calculators for car loans.

    To get an estimate of your monthly instalments on a new car loan, you will have to provide the following information:

    • Your financing amount.
    • Your financing tenure.
    • Interest rate.

    To get an idea of your settlement amount for an existing car/auto loan, you will have to provide the following information:

    • Your original financed amount.
    • Your original financed tenure.
    • Interest rate.
    • Payment type (Advance or Arrears).

    OCBC Car Loan Hotline

    You can contact with OCBC Hotline Number available. The hotline number is available between Mondays and Fridays from 9:00 a.m. to 5:00 p.m.


    FAQ's

    Q. What is the maximum financing I can get on an OCBC New Car Financing loan?

    If the open market value of your car is below S$20,000, you will receive maximum financing of 60% of your car’s valuation or purchase price, depending on whichever of the two is lower.

    If the open market value of your car is S$20,000 or above, you will receive maximum financing of 70% of your car’s valuation or purchase price, depending on whichever of the two is lower.

    Q. What is the difference between Arrears and Advance payment types?

    If you paid your first monthly instalment after you collected your car, then your payment type will be Arrears.

    If you paid your first monthly instalment before you collected your car, then your payment type will be Advance.

    Q. What is the difference between Applied Interest Rate (AIR) and Effective Interest Rate (EIR)?

    Effective Interest Rate (EIR) is the actual rate at which you will be making payments on your car loan. EIR includes any additional fees and charges such as processing/administrative fees charged on your car loan. Applied Interest Rate (AIR) does not include any other fees or charges.

    Q. If I refinance my car loan with OCBC, will my car loan tenure be computed up to 7 years again?

    No. In case of car refinancing, OCBC will subtract the repayment tenure from your existing car loan tenure for which you have made payments from the tenure of 7 years. The remainder will be your new financing period.

    Q. How accurate is the OCBC Car Loan Calculator?

    The OCBC Car Loan Calculator is a convenient online tool that will provide you with an estimate. You may rely on the results of the calculations at your own risk.

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